Owen wants to contribute cash or capital gain property or stock to a charitable organization this year. Assume his adjusted gross income for the year will be $150,000 and that he only plans to make one of the following donations.
If he contributes $100,000 cash to a public charity, he can deduct $ __________ this year.
If he contributes property that is worth $80,000 to a public charity, he can deduct $ ___________ .
Or, if he contributes publicly traded stock with a FMV of $60,000 and a basis of $40,000 to a private non-operating foundation, he can deduct $ __________ this year.
Answers
Answer:
$90,000; $45,000; $30,000.
Explanation:
In the United States of America, tax payers get reduction in the amount of taxes that they pay when taxpayers donate money to charity. The deductions in tax depends on the charity organization the tax payer is donating to and the kind of property the tax payer is donating.
Below is how it is been deducted;
(1). As regards to public charity, only 60% can be deducted from the adjusted gross income.
(2).As regards to Capital gain property contribution to public charity, only 30% can be deducted from the adjusted gross income.
(3). As regards to Capital gain property contribution to private non operating foundation, only 20% can be
In the question above, the adjusted gross income for the year will be = $150,000 deducted from the adjusted gross income.
Therefore, for (1). 60/100 × $150,000 = $90,000.
(2). 30/100 × 150,000 = $45,000.
(3). 20/100 × 150,000 = $ 30,000.
Related Questions
Bob uses the cash method of accounting. During the tax year (calendar year), he had the following income and expenses: Interest on a savings account (credited to his account on January 2 of next year) $ 68 Dividend received from Virginia Credit Union $814 Interest received on a 5-year certificate of deposit (left in CD account to compound) $910 Penalty on the early withdrawal of the 5-year certificate of deposit $ 50 What is the amount of interest income Bob must report for the current tax year?
Answers
Answer:
$814
Explanation:
When individuals or small firms use cash accounting, they will record any expenses or revenue when they are actually paid for or collected respectively.
In this case, Bob must record:
Dividend received from Virginia Credit Union $814Interests received on January 2, of next year are not included (they are included in next year's tax return). Interest received on a 5-year certificate of deposit (left in CD account to compound) is not included because it was earned before this year and left in CD to compound. The penalty for early withdrawal is associated with the CD, so it is not included.
Question 32
$24,800 is invested for 3 months in a savings account with a rate of 9% simple interest per year.
Find the interest.
$66,960.00
$5,580.00
$6,6960
$558.00
Answers
Which example represents a reward?
A: long break times
B: an achiever's name on the "Employee of the Month" board
C: banquet
D: bonus
Answers
Answer:
To me, it would be all of them, D. Bonus?
Explanation:
Should internet service providers be required to provide service to all customers and be treated and regulated as monopolies similar to electric companies?
(Give a well thought out answer and ill give brainliest)
Answers
There are several factors to consider but in general, internet service providers be required to provide service to all customers and be treated and regulated as monopolies similar to electric companies.
Why should internet service providers provide service to all customers?Requiring internet service providers (ISPs) to provide service to all customers and regulating them as monopolies similar to electric companies could potentially lead to increased access to reliable and affordable internet for all individuals, regardless of their location or economic status. This could help bridge the digital divide and ensure that everyone has access to essential services and opportunities, such as education, healthcare, and employment.
Some argue however, that the regulation of ISPs as utilities could lead to government overreach and limit the ability of ISPs to innovate and adapt to changing technologies and consumer demands.
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Mr Ashok has a company, and has an option to issue different types of preference shares. State all the types preference shares a company can issue.
Answers
Cumulative preference shares: These are types of shares where shareholders are given the right to receive dividends for those years where dividends could not be paid due to insufficient profits.
Non-cumulative preference shares: These are types of shares where shareholders are not given the right to receive dividends for those years where dividends could not be paid due to insufficient profits.
Participating preference shares: With participating preference shares, the issuing company must pay an increased dividend to the owners of preference shares if there is a participation clause in the share agreement. This clause states that a certain portion of earnings (or of the dividends issued to the owners of common stock) will be distributed to the owners of preferences shares in the form of additional dividends.
Convertible preference shares: These are preference shares that can be converted into common stock if a shareholder wants to change its holding position. They are converted into a predetermined number of preference stocks.
Non-convertible preference shares: These are preference shares where the holder of a preference share has not been conferred the right to get their holding converted into equity share.
Redeemable preference shares: These are preference shares that can be repurchased or redeemed by the issuing company at a fixed rate and date.
In summary, a company can issue different types of preference shares, including cumulative, non-cumulative, participating, convertible, non-convertible, and redeemable preference shares.
The source document we would create to collect cost information in a "Job Order Cost System" is? a labor distributed sheet
Answers
The source document that can be used in the recording of the costs that are incurred in the job order system is known as the cost sheet.
Job order cost system simply means a system that takes place when customers order unique and few batches of products.
It should be noted that the job order costing determines the price of each individual product and is also vital as it ensures that the cost for each product is reasonable enough for the customers to buy it. The cost sheet is required in this case for recording.
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Mark takes his son Jimmy to a Stockton Kings basketball game. Jimmy is 11 years old, but he looks 18. The game starts at 5pm. While they are at the game, Mark sends Jimmy to get them some food and drinks. He also gives him money, which Jimmy stuffs in his wallet with his own money. Dad wants him to buy two basketball jerseys (one each) and a game program. Jimmy buys all the items and returns to their seats. He has purchased a burger and a soda for each of them for their dinner. They each put a shirt on and then while they eat, they look through the program. At this point, a shooter for the Kings dives into the crowd chasing a ball. The player lands on Jimmy. He suffers a cut and bleeds on his new jersey. He also spills his dinner and drink on the ground. In a rush to help, Mark knocks his dinner and soda over, soaking their program with Coke.
The Kings send a medical person to attend to Jimmy, who is fine, except for the cut and a small bump on his head. Jimmy is upset about his food, the shirt and the program. He and his dad go back to the vendors and ask for refunds for each of the items. Mark wants a refund for food and his Coke. Jimmy wants a refund for the program, his jersey and his burger and drink. The vendors all refuse, since they have already eaten most of their food and ruined the other items.
Later, Mark sues in small claims court for breach of contract relating to all of the items mentioned above. DO NOT discuss the potential tort liability of the Kings for the injuries to Jimmy. This is a CONTRACTS question.
Please discuss the issues relating to contracts, i.e., whether and to what extent, the vendors at the Kings game must give refunds for the items and any other issues you feel are relevant. What are the grounds for the suits and the potential damages available? What defenses may be raised? Who will win? Identify the issues and explain all sides.
Answers
The issues relating to contracts include:
If the vendors at the Kings game must give refunds for the items. Mark sues for breach of contract, but the vendors refuse since the food is eaten and the other items are ruined. The potential damages are the cost of the items. The defense may be that the vendors fulfilled their obligations and that the items were damaged due to the actions of the Kings player or Mark. The presented evidence in court would determine who'll win.What's contract?A contract is an agreement between two or more parties that's legally binding and mentions the terms and conditions of their collective obligations.
When a contract is breached, it means that one of the parties fails to fulfill Its duty under the agreement. And the non-breaching party may be entitled to damages.
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Objectives of pep stores
Answers
Answer:
The answer is below
Explanation:
PEP is a big store that is located in South Africa and other African countries.
Based on the PEP mission and vision and according to the company's website, the Objectives of PEP stores are:
1. To be the friendliest and most trusted retailer for this market.
2. To offer wanted products and services at the lowest possible prices
3. To meet changing consumer needs.
*Will award Brainliest if correct!*
The time you define as being busy on the device.
(A) Active hours
(B) My time
(C) Windows schedule
Answers
Answer: it would active hours
Explanation: Simply, that is your active hours on your computer
The correct answer is: (A) Active hours
What are energetic hours on a computer?
Energetic hours discover the time frame while you anticipate the device to be in use. automated restarts after an update will arise outdoor during the energetic hours. via default, lively hours are from eight AM to 5 PM on pcs and from 5 AM to eleven PM on phones. customers can trade the active hours manually.
It is referred to as energetic hours. active hours are a time variety you could set to permit your computer to recognize whilst you're commonly the usage of your tool, so it might not restart robotically throughout the one's instances.
What is the means of energetic hours in home windows 10?
Energetic hours allow home windows to understanding while you're typically at your laptop. we'll use that data for agenda updates and restarts when you're no longer the usage of the pc.
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Prepare a comparative income statement for any company extracting their P&L statement for the years 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights.
Answers
Answer:
this is my own answer
Explanation:
hi
How to Prepare a Comparative Income Statement?
Step 1: Specify absolute figures of items like goods sold, net sales, selling expenses, etc., relating to the accounting period under consideration for analysis.
Step 2: Calculate the absolute change in the items mentioned in the income statement.
Compare the difference between the transfer of shares and transmission of shares with examples.
Answers
Answer:
The transfer of shares is a voluntary act by the holder of shares and takes place by way of contract. Whereas, the transmission of shares takes place due to the operation of law that is on the death of the holder of shares or in an event where the holder becomes insolvent/lunatic.
Tang worked 52 hours last week. His hourly rate is $7.80. Tang’s gross pay for last week was $
Answers
Answer: $405.6
Explanation:
If Tang earns $7.80 per hour(Hourly rate) and works for 52 hours then his gross pay would be 405.6 dollars because 52*7.80 = 405.6.
all you need to do is multiply the horly rate by the number of hours worked
Sue has sourced four wholesalers from where she will buy most of her stock, including arrangements with two suppliers for 30 days credit, while the others are Cash on Delivery (COD). She has purchased her store fittings and has $15000 of stock (Stock at Valuation - or SAV), with a further $10000 on 30 day credit). The business has an operating cash reserve of $20000. How many wholesalers require terms of cash on delivery?
Answers
The difference between the total number of wholesalers and those that supply on 30-day credit gives the number that requires cash on delivery as 2
The definition of business is profession or trade, the buying and selling of goods or services for profit. A business example is an agriculture. An example transaction is the sale of a home.
The purpose of business is to provide value (through products and/or services) to customers who pay cash or equivalent value. The money received should at least cover the costs of running the business and cover the living needs of the owner. A business is an organization that exists to provide goods and services to customers on a commercial basis. Customers can be individuals (purchasers for their own accounts or households), businesses, or other organizations.
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1 Inventory on hand—2,100 units; cost $5.40 each.
8 Purchased 10,500 units for $5.60 each.
14 Sold 8,400 units for $12.10 each.
18 Purchased 6,300 units for $5.70 each.
25 Sold 7,400 units for $11.10 each.
28 Purchased 4,100 units for $5.80 each.
31 Inventory on hand—7,200 units.
Required:
Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow methods.
Answers
Using calculations based on a periodic inventory system, the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 Income Statement using the following cost flow methods are:
FIFO Method LIFO Method Weighted Average
Ending Inventory $41,450 $39,900 $40,640
Cost of Goods Sold $88,380 $89,930 $89,190
What are the inventory cost flow methods?The various inventory cost flow methods include:
LIFO (last in, first out)FIFO (first in, first out)Specific identificationWeighted-average cost.Inventory Costing:Date Activities Units Unit Cost Total
Costs Sales
Aug. 1 Inventory on hand 2,100 $5.40 $11,340
Aug. 8 Purchases 10,500 $5.60 58,800
Aug. 14 Sales (8,400) $12.10 $101,640
Aug. 18 Purchases 6,300 $5.70 35,910
Aug. 25 Sales (7,400) $11.10 $82,140
Aug. 28 Purchases 4,100 $5.80 23,780
Total inventory for sale 23,000 $129,830
Aug. 31 Inventory on hand 7,200
Inventory sales 15,800 $183,780
FIFO:
Ending inventory = $41,450 (3,100 x $5.70 + 4,100 x $5.80)
Cost of goods sold = Cost of goods available for sale - Ending inventory
= $88,380 ($129,830 - $41,450)
LIFO:
Ending inventory = $39,900 (2,100 x $5.40 + 5,100 x $5.60)
Cost of goods sold = $89,930 ($129,830 - $39,900)
Weighted Average:
Average cost = $5.645 ($129,830/23,000)
Ending inventory = $40,640 ($5.645 x 7,200)
Cost of goods sold = $89,190 ($5.645 x 15,800)
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Question Completion:FIFO, LIFO, and Weighted Average inventory methods.
how might the use of a stakeholder management tool like the power interest grid or the stakeholder assessment matrix differ by methodology chosen?
Answers
Depending on the chosen technique, the process for using a stakeholder management tool, such as the Power Interest Grid or Stakeholder Assessment Matrix, can vary.
According to their power (influence) and interest (degree of involvement) in a project or organization, stakeholders are evaluated using the Power Interest Grid.
On a matrix with four quadrants, stakeholders are represented as high power, high interest, high power, low interest, low power, low interest, and low power, low interest.
A project's or organization's stakeholders are rated according to their level of influence and impact by the Stakeholder Assessment Matrix.
It is crucial to select a methodology that fits the particular requirements of the project or organization, taking into account the level of analysis that will be needed, the data that is at hand, and the intended results.
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What makes Tesco so unique compare to other UAE retail business?
Answers
The reason why Tesco is unique compared to other UAE retail business is that Customers of Tesco model can purchase high-quality products that were created by their product team.
What is meant by the retail business?A retail business sells goods and services to customers in modest quantities, either in-person or online. Examples of retail include grocery, clothes, and medicine stores. The definition of the retail industry is: the commercial sector in which products are sold singly or in small quantities.
In contrast to wholesale, which involves selling to businesses or institutions, retail involves selling goods and services to people.
Tesco differs from other retail establishments in the UAE in that its customers can buy high-quality goods that were designed by Tesco's in-house product team.
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How is the principle paid calculated
Answers
Answer:
Explanation:
The principle paid is calculated by subtracting the interest from the monthly payment. The remaining amount is the principle paid.
Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.
Answers
Answer:
It starts effecting price level - inflationary pressure in economy.
Explanation:
Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.
Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc
Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.
Answer:
high inflation or reduced government spending
Explanation:
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questions.
Online Content: Site 1
What is the main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired?
Answers
The main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired is:
Earned income is money gained though occupation.Capital additions are medium of exchange gained though investment(s).Salary, bonuses, commissions, and tips that you receive from an employer or the company are examples of earned money.
Capital gains are funds received as a result of the sale of an investment such as stocks or real estate. Earned income is often taxed more heavily than gains from investments, which are taxed less heavily.
As a result, the significance of the main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired are the aforementioned.
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In which of the following circumstances is an organization likely to engage in full partnerships with key consumers?
a. when the firm has few marketing resources at its disposal
b. when the market has a huge number of customers
c when the firm has a large number of low-margin customers
d. when the firm has a frequency marketing program
e when the market has few customers and high margins
Answers
The correct option is E. whilst the market has few clients and excessive margins key purchasers.
In economics, a market is a mechanism through which buyers and sellers interact to exchange goods and services. Markets play a crucial role in determining prices, allocating resources, and providing incentives for innovation and efficiency. Markets are characterized by the interaction of demand and supply, where demand represents the amount of a good or service that buyers are willing and able to purchase at a given price, and supply represents the amount that sellers are willing and able to offer for sale at that same price.
Prices are determined by the intersection of the demand and supply curves. Market structures vary in terms of the number and size of firms, level of competition, and degree of market power. In perfect competition, many small firms offer identical products, and no single firm has the power to influence prices. In contrast, a monopoly exists when a single firm dominates the market and has the significant market power to influence prices.
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A guitar manufacturer is considering eliminating its electric guitar division because its $100,280 expenses are higher than its $94,300 sales. The company reports the following expenses for this division.
Avoidable Unavoidable
Expense Expense
Cost of goods sold $56, 000
Direct expenses 9,250 $1,250
Indirect expenses 470 1, 600
Service department costs 6,000 1,430
Should the division be eliminated?
Electric Guitar Division is: Kept Eliminated
Sales 72,000
Expenses:
Direct expenses 1,250
Indirect expenses 1,600
Service department costs 1,430
Cost of goods sold 56,000
Total expenses 56,000 4,280
Net income (loss) 4,280
Revenues from electric guitar division
Avoidable expenses
Revenues are greater than (less than) avoidable expenses by
The electric guitar division should be:________.
Answers
Answer:
The electric guitar division should be: KEPT.
Explanation:
Avoidable Unavoidable
Expense Expense
Cost of goods sold $56, 000
Direct expenses $9,250 $1,250
Indirect expenses $470 $1,600
Service department costs $6,000 $1,430
total $71,720 $4,280
I believe that the $100,280 expenses and $94,300 sales are wrong, because total costs = $76,000. I looked up for more information and the correct sales number was $72,000.
differential analysis
division kept division sold differential
amount
revenues $72,000 $0 $72,000
COGS -$56, 000 ($56,000)
direct expenses -$9,250 -$1,250 ($8,000)
indirect expenses -$470 -$1,600 $1,130
service costs -$6,000 -$1,430 ($4,570)
total $280 -$4,280 $4,560
10 principles of economics
Answers
The 10 principles of economics were given by Gregory Mankiw.
These principles are:
People face tradeoffs: it means that to get one thing, one has to give up on another thing.The cost of Something is What You Give Up to Get It: it refers to the opportunity cost you incur on doing something else. Rational people think at the margin: considering the marginal cost of the product.People Respond to Incentives Trade Can Make Everyone Better Off: trading helps a country in being self-sufficient and enjoying more goods and services. Markets Are Usually a Good Way to Organize Economic Activity. Governments Can Sometimes Improve Economic Outcomes: Government can intervene to allocate resources efficiently.The Standard of Living Depends on a Country's Production: the standard of living increases as the consumption of goods and services, increases.Prices Rise When the Government Prints Too Much Money: when there's a lot of money flowing the market, it will increase the demand for goods which will increase the cost of goods, ultimately leading to inflation.Society Faces a Short-Run Tradeoff Between Inflation and Unemployment.Learn more about "Principles of economics":
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What is the easiest virtual learning program? (I’m tryna change programs)
Answers
Answer:
Udacity.com
Explanation:
I love using this its so easy and assemble come try it out!
Answer:
Khan Academy.
Khan Academy provides many courses you can study in, ranging from math to technology.I hope this helped at all.
What is meant by the concept entrepreneur?
Answers
Answer: An entrepreneur is someone who has an idea and who works to create a product or service that people will buy, as well as an organization to support that effort.
Explanation: An entrepreneur takes on most of the risk and initiative for their new business, and is often seen as a visionary or innovator.
Customers who purchase an item on account usually do so with a.
A. subsidary ledger
B. check
C. invoice
D. sales order
SUBMIT
Answers
Customers who purchase an item on account usually do so with an Option C. invoice.
An invoice is a document that lists the details of the transaction, including the item(s) purchased, the price, any discounts or taxes, and the payment terms. When a customer buys something on account, they are essentially extending credit from the seller, which means they will pay at a later date.
To keep track of these transactions, companies often use a subsidiary ledger, which is a separate ledger that tracks the individual accounts of each customer. This allows the company to easily monitor who owes them money and how much they owe. The subsidiary ledger is linked to the general ledger, which is where all of the company's financial transactions are recorded.
When a customer purchases an item on account, they typically receive an invoice that includes all of the details of the transaction. The invoice serves as a record of the sale, and it also acts as a reminder for the customer to pay the amount owed by the due date. Depending on the terms of the sale, the customer may be required to make payment in full or in installments.
In conclusion, customers who purchase an item on account usually do so with an invoice, which is tracked in a subsidiary ledger to help the company keep track of its accounts receivable. Therefore, Option C is Correct.
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if the price level is set at 35 margin points what percentage will be on each unit sold
Answers
if the price level is set at 35 margin points 35 percent will be on each unit sold
This is further explained below.
What are margin points?Generally, The amount by which an item is being sold for more than its cost price is referred to as margin points, and each point indicates a percentage of the total.
When it is mentioned that a product is being sold at a margin of 35 points, this indicates that the price at which the product is being sold is 35% more than the price at which it was produced.
In conclusion, If you wish to make a profit of 35 percentage points on the sale of a product and its purchasing price was $40, then your selling price should be:
= 40 * (1 + 35%)
= $54
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A SMART goal must clarify expectations.
Answers
A SMART goal must clarify expectations: A. True.
What is a SMART goal?In Business management, a SMART goal can be defined as a well-established tool that can be used by an individual, a project manager or business organization (company or firm) to plan, create, track, and achieve (accomplish) both short-term and long-term goals.
Generally speaking, SMART is a mnemonic acronym and it comprises the following elements:
SpecificMeasurableAchievable or Attainable.Relevancy (realistic).Time bound (timely).In this context, we can reasonably infer and logically deduce that a project manager who adopts a SMART goal must use in clarifying all of the expectations with respect to the execution or implementation of a project or task.
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Complete Question:
A SMART goal must clarify expectations.
A. True
B. False
what is the meaning of a loan
Answers
Answer:
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)
Answers
Answer:
rat
Explanation:
I will give brainliest and ratings if you get this correct
Answers
3.1 The equilibrium price and quantity for City 1 are 75 and 25, respectively and the total profit for the monopoly is 3775.
3.2 City 2 has a lower price elasticity of demand than City 1.
How to calculate the value3.1. To find the equilibrium price and quantity for each city, we need to equate the demand curve with the marginal cost curve. For City 1, we have:
P₁ = 100-Q = MC = 25
Solving for Q, we get:
Q₁ = 25
Plugging this value of Q into the demand curve for City 1, we get:
P₁ = 100-25 = 75
Therefore, the equilibrium price and quantity for City 1 are 75 and 25, respectively.
We can do the same thing for City 2 to find that the equilibrium price and quantity are 95 and 20, respectively.
To find the profit for each city, we can use the following formula:
Profit = (Price - MC) * Quantity
For City 1, we have:
Profit₁ = (75 - 25) * 25 = 1875
For City 2, we have:
Profit₂ = (95 - 25) * 20 = 1900
Therefore, the total profit for the monopoly is 3775.
3.2. To find the price elasticity of demand for each city, we can use the following formula:
Ed = -(ΔQ/Q)/(ΔP/P)
For City 1, we have:
Ed₁ = -(ΔQ₁/Q₁)/(ΔP₁/P₁) = -(0/25)/(25/75) = -1
For City 2, we have:
Ed₂ = -(ΔQ₂/Q₂)/(ΔP₂/P₂) = -(0/20)/(95/120) = -2
Therefore, City 2 has a lower price elasticity of demand than City 1.
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