oy decides to buy a personal residence and goes to the bank for a $150,000 loan. The bank tells him that he can borrow the funds at 4% if his father will guarantee the debt. Roy's father, Hal, owns a $150,000 CD currently yielding 3.5%. The Federal rate is 3%. Hal agrees to either of the following:

• Roy borrows from the bank with Hal's guarantee to the bank.
• Cash in the CD (with no penalty), and lend Roy the funds at 2% interest.

Hal is in the 32% marginal tax bracket. Roy, whose only source of income is his salary, is in the 12% marginal tax bracket. The interest Roy pays on the mortgage will be deductible by him.

Considering only the tax consequences, answer the following. If required, round the interim calculation for the tax on interest income to the nearest dollar. Final answers should be rounded to the nearest dollar, if required.

a. The loan guarantee:
Hal's interest income from the CDs would be $ before taxes and $ after taxes.

Roy's interest expense from the bank loan would be $ before taxes and $ after taxes.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

b. The loan from Hal to Roy:
Hal's tax on the imputed interest income from the loan to Roy would be $.

Roy's tax benefit from the imputed interest expense from Hal's loan would be $.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

c. Which option will maximize the family's after-tax wealth?
The loan from Hal to Roy

Gray Corporation can issue bonds with 6.25% coupon, $1000 par value, and 10 years remaining to maturity at a price of $925. Investment bankers charge 2.5% of the selling price as their fees. Tax rate is 34%.

compute before tax cost of debit

compute after tax cost of debit

Use the AD-AS model based on the misperception theory to analyze the general equilibrium effects of an increase in consumer optimism on output and the price level. Describe how the economy is affected in the short run before prices adjust and describe its evolution after prices adjust. Use a graph to illustrate your answer.

Compute the net income, using FIFO and LIFO and the following information:

Beginning Inventory 26,000 units @ $25.00

Purchases (new inventory) 26,000 units @ $30.00

Sales: 26,000 units @ $65.00

Tax Rate: 33%

Total Income before taxes: $51,500

Total Income after taxes: $34,505

Margarita operates a sole proprietorship that earns $150,000 of qualified business income after deducting salaries of $300,000. Thesole proprietorship is not a specified service business. She files a single tax return for 2019. Assume her taxable income before the QBI deduction is $175,000. Margarita's QBI deduction for 2019 is:

A titration is performed by adding .435M KOH to 80ml of .205M HC3H5O2.

A) Calculate the pH before the addition of any KOH?

B) Calculate the pH after the addition of 7.54ml of KOH?

C) Calculate the volume of base needed to reach the equivalence point?

D) Enter the pH of the solution at the equivalence point of the titration?

A firm has a net profits after taxes of $75,600, a 30% tax rate, a 10% interest rate, and a 10 times interest earned ratio. Based on the given information, the firm earnings before interest and taxes equals?

Select one:

a. $100,000

b. $110,000

c. $130,000

d. $120,000

Identify Economics in action in either a movie or a television show. Explain how that movie (or show) displays one, or several, economic concepts. If this is a movie/show you've seen before, did you recognize the economic concept the first time around, or is it something you realized after taking an economics course.

How do the requirements for coverage for domestic partners, such as length of the relationship, compare with requirements for married couples? Do companies usually require a waiting period after dissolution of a marriage (divorce) before a new spouse can become eligible for benefits? What factors may have influenced the inclusion of these stipulations?