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Question - At Ruth Company, events and transactions during 2017 included the following. The tax rate for all items is 30%.
(1) Depreciation for 2015 was found to be understated by $150,000.
(2) A strike by the employees of a supplier resulted in a loss of $125,000.
(3) The inventory at December 31, 2015 was overstated by $200,000.
Required - What the effect of these events and transactions on 2017 income from continuing operations net of tax?
a. ($87,500).
b. ($192,500).
c. ($332,500).
d. ($245,000).
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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