All other things being equal, the tax benefits of a tax credit outweigh the tax savings produced by a tax deduction because:

1) It reduces a taxpayer's tax liability

2) It reduces a taxpayer's taxable income

3) It reduces a taxpayer's capital gains

4) None of these

In 2019, what is the earned income credit allowed Don Andersen, a head of household taxpayer, assuming he has adjusted gross income of $9,500 (consisting of interest income of $3,500 and earned income of $6,000? He maintains his household with his daughter.

1) $2004

2) $2049

3) $2094

4) $0

5) None of the above answers are within $20 (plus or minus) of the correct answer.

Chapter 3 Problem to be completed with Excel

P3-1A On April 1, Wonder Travel Agency Inc. was established. These transactions were completed during the month. • 1.Stockholders invested $30,000 cash in the company in exchange for common stock. • 2.Paid $900 cash for April office rent. • 3.Purchased office equipment for $3,400 cash. • 4.Purchased $200 of advertising in the Chicago Tribune, on account. • 5.Paid $500 cash for office supplies. • 6.Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account. • 7.Paid $400 cash dividend. • 8.Paid Chicago Tribune amount due in transaction (4). • 9.Paid employees' salaries $1,800. • 10.Received $9,000 in cash from customers billed previously in transaction (6). Instructions: Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings. Cash $34,800 Total assets $38,700

XYZ Company, LLC, plans to offer professional marketing services to engineers and scientists who have developed new technology they wish to bring to market. XYZ expects to have an average payroll cost per hour of $51.50 and monthly fixed costs of $3,450.

1. How much per hour should XYZ charge its customers if it wishes to achieve a 55% margin?

2. How much per hour should XYZ charge its customers if it wishes to achieve a 65% margin?

3. If XYZ feels it can charge its customers no more than $135 per hour, and it wants to maintain a margin of 65%, to what amount does XYZ need to reduce its average payroll cost per hour?

4. Considering the price and variable cost from Q#3, how many hours of marketing services must XYZ sell each month in order to breakeven?

5. Suppose XYZ wishes to make a profit of $12,500 per month at a price of $135 per hour and a margin of 70%. How many hours of marketing services does XYZ need to sell per month?

Commercial Bank and Trust Company is studying the use of its automatic teller machines (ATMs). Of particular interest is whether young adults (under 25 years) use the machines more than senior citizens. To investigate further, samples of customers under 25 years of age and customers over 60 years of age were selected. The number of ATM transactions last month was determined for each selected individual, and the results are shown below. Under 25 10 10 11 15 7 11 10 9 Over 60 4 8 7 7 4 5 1 7 4 10 5 1. Find the degrees of freedom for unequal variance test. (Round down answer to nearest whole number.) 2. State the decision rule for 0.01 significance level: H0 μunder ≤ μover; μunder > μover. (Round your answer to 3 decimal places.) 3. Compute the value of the test statistic. (Round your answer to 2 decimal places.) 4. At the .01 significance level, can the bank management conclude that younger customers use the ATMs more?

The following sample data reflect shipments received by a large firm from three different vendors and the quality of those shipments. (You may find it useful to reference the appropriate table: chi-square table or F table)

b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

The following sample data reflect shipments received by a large firm from three different vendors and the quality of those shipments. (You may find it useful to reference the appropriate table: chi-square table or F table)

b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

The owner of Haverty’s Furniture Company was studying the relationship between sales and the amount spent on advertising. The sales information for the last four months is repeated below:

Draw a scatter diagram and discuss whether or not it indicates that there is a relationship between the advertising expense and sales revenue.

Compute the coefficient of correlation. Interpret it.

Compute the coefficient of determination. Interpret it.

Test to determine whether the coefficient of correlation in the population is significantly different from zero. Use alpha 0.05.

Develop the estimated regression equation/the least squares line that could be used to predict the sales revenue based on the advertising expense. Interpret the regression coefficients.

Compute the standard error of estimate.

Test to determine whether the regression slope coefficient in the population is significantly different zero. Use alpha 0.05.

Are the results from part d and g consistent? Should they be? Justify your answer.

Estimate sales when $3 million is spent on advertising.

I am trying to determine operating cash flow for years 1, 2, 3 and 4 for a company who is evaluating a new MRI machine. I calculated the revenue based on # of scans times the net revenue for each scan and got $900,000. Should this figure remain the same for years 2, 3, and 4 or does the neutral inflation rate of 2% need to be added to each?

Also, does depreciation, variable and fixed costs change with the 2% neutral inflation rate? I am thinking that fixed costs and depreciation will not change.

Compare centralized exchanges to OTC markets. In your opinion, why are bonds typically traded on OTC markets?

Describe Natural Gas' supply chain from raw materials to consumer, and how it's financially traded.