More needs to be done to capitalise on the power of the peer-to-peer networks that many music downloaders still use. A recent study found that regular downloaders of unlicensed music spent an average of £5.52 a month on legal digital music. This compares to just £1.27 spent by other music fans. The research clearly shows that music fans who breakpiracy laws are highly valuable customers. It also suggests that they are eager to adopt legitimate music services in the future. One researcher pointed out that "There's a myth that all illegal downloaders are mercenaries hell-bent on breaking
the law in pursuit of free music. In reality hardcore fans "are extremely enthusiastic about paid-for services, as long as they are suitably compelling, he said.
People who download unlicensed music tend not buy legal digital music.

A True
B False
C Cannot Say

Answer:

spreading the cost of an asset over its useful life to the entity.

Explanation:

The depreciation is a non-cash expense that should be charged over the fixed assets i.e. land, buidling, car, etc

It is an expense so the same should be shown on the debit side of the income statement

Also the cost of an asset minus the salvage value divided by the useful life could be spreaded as the depredciation expense by using straight-line method

Answer:

2.64%

Explanation:

It requires application of basic time value of money function

n = 17

FV = $308,700

PV = $198,300

FV = PV * (1 + r)n  

$308,700 = $198,300 * (1 + r)^17

$308,700 / $198,300 = ($198,300 * (1 + r)^17) / $198,300  

1.556732 = (1 + r)^17

Taking 17th root of equation

1.0264 = 1 + r

r = 2.64%

Answer:

If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary

A 4.5% increase in marginal tax  = 0.16 * 4.5 = 0.72  = 0.7 ( decrease in quantity of labor )

A 2% increase in marginal tax

= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )

A 15% increase

= 0.16 * 15 = 2.4 ( decrease in quantity of labor )

No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )

A reduction of 5%

= 0.16 * 5 =  0.8 ( increase in quantity of labor )

Explanation:

Tax elasticity of labor supply = 0.16

What percentage will the quantity of labor supplied increase in response to

A) $500  per person income tax rebate

percentage change in quantity supplied = (tax elasticity of supply) * (percentage change in tax rate ) If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary measure and does not have an effect the tax rate in the long run.

B) A 4.5% increase in marginal tax

change in the quantity of labor = tax elasticity * increase marginal tax

                                               0.16 * 4.5 = 0.72  = 0.7 ( decrease in quantity of labor )

A 2% increase in marginal tax

= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )

A 15% increase

= 0.16 * 15 = 2.4 ( decrease in quantity of labor )

No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )

A reduction of 5%

= 0.16 * 5 =  0.8 ( increase in quantity of labor )

Answer:

11.15%

Explanation:

Given that

Risk free rate of return= 5%

Beta = 1.69

Expected rate of return = 15.4%

As per capital asset pricing model

Expected rate of return = Risk free rate of return + Beta × (Market rate of return - risk free rate of return)

15.4% = 5% + 1.69 × (Market rate of return - 5%)

After solving this

Market rate of return = 11.15%

Journal entry on August 15th for Roland industries for payment of the invoice in full:

It is given that Roland industries purchased $2,200 worth of inventory on account on august 6th. Roland industries were granted a $190 purchase allowance for slightly damaged goods. It means the net amount of invoice is (2200-190) = $2,010. We are also given that the terms were 2/15, n/eom. Now the company paid the invoice on 15th August, it means it shall get the discount of 2% and the net amount to be paid shall be = 2010- (2010*2%) =  $1,969.80

The Journal entry on August 15th for Roland industries for payment of the invoice in full shall be as follows:

Account Payable Debit $2,200

Inventory Credit $190

Purchase Discount Credit $40.2

Cash Credit $1,969.80

(Being payment made in full and discount received)