In March 2018, the Federal Reserve Bank officials met and decided to increase the interest slightly (a quarter of one percent) and have hinted that there will be two or more interest hikes in 2018. The reason for these hikes is to prevent the economy from overheating as unemployment continues to drop. Using AD-AS model, show what could happen to the economy if the Fed hiked interest rate when the economy is close to full employment.

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

On January 1, 2018, you deposited $5,200 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019?

1. On 6/14/2013, Jack paid $130000 for a property. This purchase price represents $105000 for the cost of the building and $25000 for the cost of the land. On 8/2/2018, he sold the property for $130000. Compute the MACRS depreciation for each one of the years he owned the property.

Note: recovery period is 39 years.

Note: Find the depreciation for each year from 2013 to 2018, separately.

Sugarland Industries reported a net income of $820,750 on December 31, 2018. At the beginning of the year, the company had 570,000 common shares outstanding. On April 1, the company sold 31,200 shares for cash. On August 31, the company issued 56,400 additional shares as part of a merger.

Required: Compute Sugarland's net income that would produce a basic EPS of $2.35 per share for 2018.

On January 1, 2018, General Bell Company issued $1,200,000 par value, 8%, five-year bonds while the effective rate is 12%. The bonds are dated January 1, 2018. The interests are payable semiannually each June 30 and December 31. On January 1, 2020, General Bell calls half the issue at 101 and cancels it. Write all necessary journal entries.

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for the year is $170,000.

What is her self-employment tax liability and additional Medicare tax liability for 2018? (Round your intermediate calculations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Self-employment tax liability-

Additional medicare tax liability-

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for the year is $190,000.

What is her self-employment tax liability and additional Medicare tax liability for 2018? (Round your intermediate calculations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Self-employment tax liability

Additional medicare tax liability