Monty loaned his friend ned $20,000 three years ago. ned signed a note and made payments on the loan. last year, when the remaining balance was $11,000, ned filed for bankruptcy and notified monty that he would be unable to pay the balance on the loan. monty treated the $11,000 as a nonbusiness bad debt. last year, before considering the tax implications of the nonbusiness bad debt, monty had capital gains of $9,000 and taxable income of $45,000. during the current year, ned paid monty $10,000 in satisfaction of the debt. determine monty's tax treatment for the $10,000 received in the current year.

Gulliver travel agencies thinks interest rates in europe are low. the firm borrows euros at 5 percent for one year. during this time period the dollar falls 11 percent against the euro. what is the effective interest rate on the loan for one year? (consider the 11 percent fall in the value of the dollar as well as the interest payment.)

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%

Considered alone, which of the following would increase a company's current ratio? a. an increase in net fixed assets. b. an increase in accrued liabilities. c. an increase in notes payable. d. an increase in accounts receivable. e. an increase in accounts payable.