A Firm Is Offered Trade Credit Terms of 2/8,net 45

question 100

Multiple Choice

A firm is offered trade credit terms of 2/8,net 45 days.The firm does not take the discount,and it pays after 58 days.What is the effective annual cost of not taking this discount? (Assume a 365-day year.)

• A)13.35%
• B)14.70%
• C)15.89%
• D)18.70%

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Modified AGI

Modified Adjusted Gross Income, an income measure used for tax purposes, adjusting the AGI for specific deductions or exclusions.

Qualified Adoption Expenses

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Guatemala

A country located in Central America, bordered by Mexico, Belize, Honduras, and El Salvador, known for its rich Mayan heritage and diverse ecosystems.

Lifetime Learning Credit

A tax credit available for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution, aimed at promoting lifelong learning.