ANSWERS TO QUESTIONS FOR CHAPTER 1 (Questions are in bold print followed by answers.) 2. What is meant by a mortgage-backed security? A mortgage-backed security is a security backed by one or more mortgage loans. Like a bond that is callable‚ a mortgage-backed security allows the investor to grant the borrower an option. 4. What is the cash flow of a 10-year bond that pays coupon interest semiannually‚ has a coupon rate of 7%‚ and has a par value of $100‚000? The principal or par
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(Shields 9). For over 100 years‚ most schools have adhered to a traditional summer vacation schedule which stemmed from our primitive technological resources and advancements. However‚ as technological growth was made schooling throughout the year became more practical and thus the concept of a year-round schedule was introduced. With year-round schedules now becoming ever more prevalent and traditional schedules becoming slowly obsolete‚ a debate has sparked between the merits of the two. This debate
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"Absolute poverty" is defined by Encarta online dictionary‚ as the measure of the number of people living below a certain income threshold or the number of households unable to afford certain basic goods and services (Encarta "absolute poverty"). In other words‚ in the United States‚ absolute poverty is used with an official poverty line set in dollars and representing the annual income required to allow a family of a given size to purchase the range of goods and services that are seen as constituting
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Homework On National Income Answer Sketch for Selected Questions Dr. Patrick Toche April 2‚ 2011 1 Reference : Mankiw‚ Mankiw‚ Macro (7th)‚ Chapter 2‚ Problem 4. Suppose a woman marries her butler. After they are married‚ her husband continues to wait on her as before‚ and she continues to support him as before (but as a husband rather than as an employee). How does the marriage affect GDP ? What is your reaction to this ? Hints : GDP is a measure of recorded transactions only‚ not
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Drinking is widely regarded as a socially acceptable practice and is embedded into the lifestyle of many cultures. In Australia alone‚ results from a 2015 survey reported that 86.4% of participants over the age of 18 consumed alcohol at some point in their life while 56.0% drank alcohol in the past month. It is possible for us to use alcohol safely. Many of us are able to control the amount of alcohol they drink and are known as recreational drinkers. They have the ability to refuse alcohol once
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Deduction under section 33AB is allowable against composite income and not against only 40% of composite income- A case of un-necessary litigation by revenue in case of Tea Companies . Computation provision: Section 33AB is a provision relating to allowing deduction from business income. It falls under Part “D” of Chapter IV of the Income-tax Act‚ 1961. This part consists of various sections from section 28-44DB. As per section 29 the income referred to in section 28 shall be computed in accordance
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However‚ every income is taxable under income tax law‚ whether it is received in cash or in kind‚ whether it is capital or revenue income‚ but still some incomes are given exemption from tax. In this lesson we will study those incomes which are exempt from tax. Here are some of the important items of income‚ which are fully exempt from income tax and which can be utilised by a resident individual Indian assessee for the purpose of tax planning. ➢ AGRICULTURAL INCOME: Under the
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flow is $3‚500 as well as the principal pay back of $100‚000 coinciding with the last payment of $3‚500. 12. a. What is meant by an amortizing security? An amortizing security is created from loans that have an amortization schedule. These securities will then have a schedule of periodic principal repayments. 12. b. Why is the maturity of an amortizing security not a useful measure? The stated maturity of such securities only identifies when the final principal payment will be made. The repayment
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CHAPTER Accounting for Income Taxes OBJECTIVES After careful study of this chapter‚ you will be able to: 1. 2. 3. 4. 5. 6. 7. 8. 9. Understand permanent and temporary differences. Explain the conceptual issues regarding interperiod tax allocation. Record and report deferred tax liabilities. Record and report deferred tax assets. Explain an operating loss carryback and carryforward. Account for an operating loss carryback. Account for an operating loss carryforward. Apply intraperiod tax allocation
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no one talks about it. This problem within society is of course income inequality. When millionaires in America like Warren Buffett are paying much lower tax rates than their secretaries (“President Obama on Tax Fairness and Income Inequality”)‚ then you know that there is a serious problem here. The United States government treats the wealthiest Americans like they are untouchables and that is just disgusting. The problem of income inequality is huge within American society. It is a prevalent issue
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