Winston cantrell earns $70,000 annually as business professor at greenlaw university. winston is a participant in the university’s defined benefit plan. five years ago, he began doing some management and marketing consulting for small business owners. he now earns $35,000 a year as a self-employed person in addition to his university income. winston is considering adopting a money purchase keogh for this self-employed business. as his financial advisor, you tell winston:
a. he cannot establish a keogh plan since he has a qualified plan in the job where he earns the most
b. he can establish a keogh plan and deduct up to 25% of his total earnings
c. he can establish a keogh plan and deduct up to 25% of his gross self-employment earnings
d. he can established a keogh plan and deduct up to the statutory limit as counted by his total income
e. he can establish a keogh plan and deduct up to 25% of earned income from self-employment

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false