Answer:Conclusion:
The market for loanable funds in Canada to increase the interest rate for Wendy higher than rate of increase found for loanable funds, and it reduces the interests rates for peter which is lower than the rate of increase found in the market for loanable funds.
Explanation:Explanation:
Co-owners of Canadian firm:
Peter and Wendy
Place: Quebec, and Endland
a. Peter increases the demand for loanable funds
b. Wendy increases the demand for loanable funds
Ans)
The increase in the demand for loanable funds on the right side at reduced interest rate. And wendy’s demand for loanable funds increases with the interest rate and interest rate produced is higher for loanable funds (A-y).
c. Peter increases the supply for loanable funds
d. Wendy increases the supply of loanable funds
Ans)
The Supply of loanable funds for wendy, is at the demand followed equals at D. The interest on the loans is calculated at A on x axis. And the supply of loanable funds for Peter is higher at point on demand curve D. The interest rate with the increase of loanable is reduced and the reduction followed is lower than increase found in the loanable funds in the market provided.
Peter and wendy are co-owners of the Canadian Firm, Tick TockAirlines. Peter Increases the supply of the loanable funds and Wendy in turn increases the supply of the loanable funds. Hence options C and D are correct.
What are the loanable funds?The main thing about loanable funds is that it talks about the ways and also the means of understanding the same things in a more precarious also the same way of controlling them. The Loanable funds are given based on the savings bank accounts.
The loanable funds, more importantly, include almost everything starting from bonds, papers of any kind, currencies, and all sorts of monetary transactions that take place. The supply of loanable funds to anyone depends mainly on the ways and also means of the saving account in the bank.
The loanable funds are very important because it helps to cancel out the interest rates also. Hence, options C and D are correct.
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___________________________relate a firm’s stock price to its earning and book value.
Market value ratios relate a firm’s stock price to its earning and book value.
What is a stock?In Trading and securities, a stock is also referred to as equity and it can be defined as a financial security which represents a stockholder's ownership of a fraction of a corporation.
What is a market value ratio?A market value ratio can be defined as a financial metric that is typically used for the measurement and analysis of the stock prices of a business organization with respect to its earning and book value.
In conclusion, market value ratio helps to track the financial performance of a business organization, in order to understand its position in the market.
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Why does geographic location affect the cost of premiums? (1 point)
O There are less car mechanics in certain areas so the cost to repair is higher.
O Because people in urban areas tend to buy flashier cars.
Because insurance companies review the statistical history of claims for an area and if there is an
increased risk of claims for accidents or theft, they will raise the premium.
O Because insurance companies believe that people in urban areas should use mass transit.
The right response is an option (c), meaning that premiums will be increased if there is a higher chance of claims for accidents or theft. Insurance firms examine the statistical history of claims for a region.
Why does geography affect how much a premium will cost?Pricing may be less expensive in a market that is nearby than it would be in a market that is farther away because of the lower cost of transportation. If the products are competing in a crowded market with many other high-quality options for customers, prices may be lower.
Why do medical expenses vary by location?Spending and utilization variations between geographical areas may be the result of individual or regional-specific variables. Individual features and interests of people residing in each of the various geographic locations are examples of person-specific elements that influence the need for care.
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Answer:
the correct answer is c
Explanation:
because insurance companies review the statistical history of claims for accidents or theft.....
Do any of the actions Day took to change the culture align with Lewin & Schein's Model of Change? How?
Lewin's theory of change management aids in explaining how uncertainty and resistance to change can be felt by all staff members within a company.
What does Lewin's theory of change aim to achieve?According to Lewin's theory, restraining forces—barriers that oppose driving forces aimed at maintaining the status quo—and driving forces—positive forces for change that push in the direction that causes change to happen—have an impact on both individuals and groups of persons.
Do we still need Lewin's change model today?The Kurt Lewin change model is effective and is still in use today because it is founded on strong behavioral psychology and is intended to help understand why people resist change and create the conditions that would encourage acceptance and support of that change.
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Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price.
How much producer surplus did Macy’s receive from the hundredth scarf sold?
The producer surplus that Macy would receive from the hundredth scarf sold is $2.
How to find the producer surplus?The producer surplus refers to the amount that a producer gains from selling a good, over the amount that they were willing to sell the good.
The producer surplus can be found by the formula:
= Selling price - Marginal cost
Selling price = $12
Marginal cost = $10
The producer surplus therefore is:
= 12 - 10
= $2
In conclusion, the producer surplus that Macy would have gotten from selling the hundredth scarf is $2.
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4 . Which of the following economic actions increases the amount of current assets?
A receipt of cash from customers.
A purchase of raw material, on credit.
A purchase of raw material, for cash.
A payment to suppliers.
Task 1: Wholesale and Retail Customers
Using a product of your choice list three ways in which sales to wholesale customers would
differ from sales to retail customers.
Type your response here:
Task 2: Pyramid Scheme
Herbalife is a multilevel marketing company that has recently come under criticism from
investors as being nothing more than a pyramid scheme. Using online research, summarize
both sides of this argument in about 300-400 words.
Type your response here:
Who buys the products that are for sale is a major difference between retail and wholesale. The end user or consumer buys the product directly from the retail store in a retail setting. Instead of selling directly to customers, a wholesaler sells goods to other retail establishments.
What is the contrast between a retail and discount credit might you at any point site a model?Who buys the goods being sold is a major difference between retail and wholesale. The consumer, or end user, buys the product directly from the retail store in a retail setting. A wholesaler, on the other hand, sells goods to other retail stores rather than directly to customers.
What is retail trade and wholesale trade?Retail businesses also sell products, but unlike wholesalers, retailers sell products to the general public in small quantities for personal or household consumption. Retailers sometimes sell products to organizations and businesses.
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Answer:
I answered task 1 and gave a video for task 2
Explanation:
I chose to do Shirts as the product of my choice. The first way in which way sales to wholesale customers would differ from sales to retail customers would be wholesale customers buying the shirts in bulk for a discounted price, while retail customers buy from the wholesale customers and sell the shirts to the final buyer. The second way that wholesale customers are different from retail buyers is wholesale customers sell to owners and businesses while retail customers deal with customers and plain Janes. Wholesale and retail customers have big differences as retail customers aim towards 30 % to 50 % profit.
(Please just use this as an idea, you don't learn from cheating!)
Task 2: Use this video there is a ton of information!
https://slidebean.com/story/is-herbalife-a-pyramid-scheme
Eric and James are registered domestic partners and are both residents of, and domiciled in, California. Eric makes $47,200, and James makes $46,800. Eric also received $820 in interest income from Eric's investment fund, which he inherited and has maintained as separate property during the partnership. What amount will Eric report on his federal and California returns?
According to the question, the amount of $ 48,020 will Eric report on his federal and California returns. It will include interest income from Eric's investment fund of $ 820.
What do you mean by investment fund?An investment fund gives investors access to a wider range of investment choices, superior management, and fewer investment fees than they might be able to on their own.
An investment fund is a pool of money that many individuals contribute to the purchase of securities while each investor has ownership and control over his or her individual shares.
Investment funds come in a variety of forms, such as mutual funds, exchange-traded funds, money market funds, and hedge funds.
Therefore,
Eric's earnings = $ 47,200
Add: Interest income from Eric's investment fund = $ 820
Federal return on Eric's report = $ 48,020.
The amount of $ 48,020 will Eric report on his federal and California returns.
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Under what conditions do producers bear the full burden of an excise tax levied on the
producer?
The burden of an excise tax rests mostly on producers when the price elasticity of supply and demand is large and low, respectively.
What is the tax burden on the producer?A tax increase's consumer cost represents how much the market price increases. The loss of revenue businesses experience after paying the tax is known as the producer burden.
Note that Consumers are the main payers of excise tax. Demand is price inelastic if the demand curve is relatively steep. The supply is price elastic if the supply curve is comparatively flat. An excise tax falls mostly on producers when the price elasticity of supply is greater than the price elasticity of demand.
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Can someone help me with this worksheet?
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Edison has a roll of quarters that he just withdrew from the bank to do laundry. Kevin has $25,000 in a money market account. Maria has $8,000 in a two-year certificate of deposit (CD).
Kevin has $25,000 in a money market account. = M2. Money market account is grouped under M2 and means a condition where the deposits of many depositors are gathered purposely for investing in viable ventures such as short-term government bonds.
ii. Maria has $8,000 in a two-year certificate of deposit (CD). = M2. A two-year certificate of deposit is classified under M2 and means to account that the depositors are ready to keep in the bank for a particular period and gain a higher interest.
iii. Edison has a roll of quarters that he just withdrew from the bank to do laundry. = M1 and M2. A roll of quarters is currency in circulation. The currency in circulation falls under M1 and M2.
What is an M1 and M2 in economics?In economics, money is refered to as M1 and M2. M1 is made up of currency in circulation, traveler's checks as well as checkable deposits. On the other hand, M2 is made up of all components of M1 and other assets like small time deposits, savings deposits, and money market accounts.
Therefore, the correct answer is as given above
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Question 15
1 pts
What are the common goals of both fiscal and monetary
policy?
The creation of an environment where growth is steady as well as positive and inflation is steady and low is typically the overarching goal of both fiscal and monetary policy.
what are fiscal and monetary policy?
The term "monetary policy" refers to actions taken by the central bank with the intention of influencing the amount of credit and money in an economy. Fiscal policy, on the other hand, refers to the choices made by the government regarding taxation and spending. Fiscal and monetary policies are both used to control economic activity over time. They can be used to either moderate growth and activity whenever an economy starts to overheat or to accelerate growth when it starts to slow. Redistribution of wealth and income can also be achieved through fiscal policy. The creation of an environment where growth is steady and positive and inflation is steady and low is typically the overarching goal both of monetary and fiscal policy.
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What is the main purpose of the Securities and Exchange Commission (SEC)? To issue U.S. bonds To protect investors To trade in foreign stocks To buy stock in U.S. companies
To trade in foreign stocks is the main purpose of the Securities and Exchange Commission (SEC). An independent federal government regulatory body, the U.S. Securities and Exchange Commission (SEC).
Is in charge of safeguarding investors, government ensuring the fair and orderly operation of the securities markets, and promoting capital formation. The SEC is required to issue regulations to facilitate and hasten, among other things, corporate name reservation and registration, incorporation, submission of reports, notices, and documents needed to comply with the Code, and the exchange of pertinent information with other governmental organizations. The Securities and Exchange Commission (SEC).
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Jesse has $12,000 saved for medical school from gifts and summer jobs. Because the cost of college has risen each year, Jesse knows a savings account that will help meet these increases is important. Which type of account will help Jesse maximize returns to help pay for the rising costs while protecting the initial $12,000? A checking account A compound interest account A high-risk investment A simple interest account
If Jesse knows a savings account that will help meet these increases is important. The type of account that will help him maximize returns to help pay for the rising costs while protecting the initial $12,000 is B. A compound interest account.
What is a compound interest account?A compound interest account can be defined as the type of account in which interest on the amount saved are compounded which implies that the interest earn will be added to be principal amount making the account holder to earn more interest on the principal amount as well as the interest given or accumulated interest.
Based on the given scenario compound interest account will be the best choice for him since he want to maximize the return. Saving the $12,000 will enables him to earn more interest.
Therefore the correct option is B.
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The following is cost information for the Creamy Crisp Donut Company.
Entrepreneur's potential earnings as a salaried worker = $40,000
Annual lease on building = $25,000
Annual revenue from operations = $420,000
Payments to workers = $150,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp's total economic costs are:
A. $309,000.
B. $183,000.
C. $111,000.
D. $189,000.
If entrepreneur's forgone interest on personal funds used to finance the business $6,000. Creamy Crisp's total economic costs are: C. $111,000.
What is economic profit?Economic profit can be calculated by deducting the cost from the revenue.
Using this formula to find the total economic costs
Total economic costs = Revenue - Total cost
Let plug in the formula
Total economic costs = $420,000 - ( $40,000 + $25,000 + $150,000 + $8,000 + $80,000 + $6,000)
Total economic costs =$420,000 - $309,000
Total economic costs = $111,000
Therefore we can conclude that the correct option is C.
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A licensee's failure to notify the seller that he/she has a written offer from a buyer/tenant is:
A licensee's failure to notify the seller that he/she has a written offer from a buyer/tenant is: A felony Permissible if the seller has told you not to present offers below a certain price.
Who is a licensee?Any company, group, or person that has received authorization from another body to carry out an activity is known as a licensee. The authorization, or license, may be granted explicitly or subtly.
Through fees, royalties, or some other form of revenue-sharing agreement, licensees will make restitution to the license's owner.
In a number of industries, including media, entertainment, technology, and bio-pharma, licensing agreements are typical.
Franchises, trademark licenses, and government licensing are a few examples of licensee agreements.
The ability to legally conduct business is granted to the licensee by an operating license.
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A licensee's failure to notify the seller that he/she has a written offer from a buyer/tenant is:
A felony*Permissible if the seller has told you not to present offers below a certain priceA Class B misdemeanorPunishable by fine by the MRECWhat ethical questions do you think you should ask when you compose material for marketing and outreach?
How would you counter “smears” like these?
Answer:
By adopting appropriate marketing ethics, brands can engage prospects with high credibility, customer loyalty, significant market share, improved brand value, better sales, and better revenue. These ethical practices will place their right towards achieving both short-term and long-term goals with perfection.
A smear campaign, also referred to as a smear tactic or simply a smear, is an effort to damage or call into question someone's reputation, by propounding negative propaganda.[1] It makes use of discrediting tactics.
Victoria Secret maintains a large data warehouse in which it keeps track of inventory, buying patterns, and regional differences. An examination of information from a data warehouse subset that contained data from its Miami, Florida, stores showed that for every one black bra purchased ten ivory bras were purchased. This subset is referred to as a(n):
information network or data mine?
Under this situation, the subset is referred to as an internet network. Although they are frequently used terms interchangeably, the internet and the World Wide Web are not the same thing. The correct option is (a).
What do you mean by the internet network?
The phrase "the network of networks" is the simplest way to describe the Internet. It is, in a sense, the joining of various computer networks into a single entity. It is a network of several smaller computers rather than a single large computer.
Wi-Fi, broadband, DSL, and cable are examples of internet network types. The internet is a network of interconnected, private, public, business, academic, and governmental networks that enables global communication and access to informational resources.
Therefore, under this situation, the subset is referred to as an internet network. Although they are frequently used terms interchangeably, the internet and the World Wide Web are not the same thing.
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An employment situation that pays bills but is largely unfulfilling is
The answer is "A Job"
Definition of a job is a type of working that you do and work for money.
Thus, your answer is an job.
The following is (are) the Tangible source(s)
O capital
Omechine
Oraw materiel
all of the above
4. The narrator claims that economists today are more often seen as “fortune tellers” or “stockbrokers.” How did Adam Smith see himself by contrast? Do you think this characterization of economists today is correct? Why or why not?
According to analysts, was the now are more economist commonly perceived as "fortune-tellers" or "stockbrokers." are the dependent on the differences in the approaches are the utilized.
What is economists?The term economist was the refers to give the theory was the economy was on the different in the scientist. There was the different in the theory and the definition.
A economist is a person or company who trades stocks on the stock conversation. For trading stocks, clients seek guidance from stockbrokers, who charge a broker fee; online brokers typically charge less than button-down brokers.
As a result, the analysts, was the now are more commonly perceived as "fortune-tellers" or "stockbrokers." are the economist dependent on the differences in the approaches are the utilized.
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A brand of cereal had 1.21.21, point, 2 milligrams (\text{mg})(mg)left parenthesis, start text, m, g, end text, right parenthesis of iron per serving. Then they changed their recipe so they had 1.8\,\text{mg}1.8mg1, point, 8, start text, m, g, end text of iron per serving.
The proportion is a component of the total. The amount of iron per serving has changed by 48.46%.
A portion of a whole can be described as a percentage. For instance, the fraction 1/4 can be expressed as 0.25, or 25%.
You must first convert a fraction to decimal form before multiplying it by 100 and adding the sign (%).
Offered to us
1.21 milligrams of iron per serving before
Then, each dish contains 1.8 mg of iron.
Since we are familiar with the idea of percentages,
Alteration of iron serving, 1.8 - 1.21 = 0.59
Percentage adjustment for serving
The serving percentage change is given in the table below.
Percentage change in serving = Change in iron serving/Iron content before × 100
= 0.59/1.21 × 100
= 48.46%
Thus, the difference in iron content per serving as a percentage is 48.46%.
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In her Principles of Marketing class, Sai's professor has repeatedly emphasized how important relationship
marketing is to the success of a business. Which of the following is correct regarding relationship marketing?
The correct option regarding relationship marketing is option A: It refers to marketing decisions and activities focused on achieving long term satisfying relationships with customers.
How does relationship marketing operate?A strategy to build enduring ties with prospects and consumers is relationship marketing. Relationship marketing places more emphasis on customer experience than just sales. A brand experience aids in bringing in new clients and keeping them around for a very long time, resulting in repeat business.
Therefore, Relationship marketing is a component of customer relationship management (CRM) that prioritizes long-term engagement and client loyalty over short-term objectives like customer acquisition and individual sales.
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See full question below
In her Principles of Marketing class, Sars professor has repeatedly emphasized how important relationship marketing is to the success of a business. Which of the following is correct regarding relationship marketing? It refers to marketing decisions and activities focused on achieving long.term, satisfying relationships with customers. it is created by converting production inputs into finished products. It refers to marketing decisions and activities focused on achieving short-term, satisfying relationships with customers: It relers to the ability of a good or service to satisfy a human need.
Tamarisk University sells 6,900 season basketball tickets at $65 each for its 15-home game schedule
Tamarisk University sells 6,900 season basketball tickets at $65 each for its 15-home game schedule Revenue is $448,500.
(6,900*$65 = $448,500)
Revenue is the whole amount of profits generated by way of the sale of goods or offerings associated with the agency's number one operations. revenue, additionally known as gross income, is regularly referred to as the "top line" as it sits at the pinnacle of the income announcement. revenue describes earnings generated thru business operations, whilst profit describes internet profits after deducting prices from income. revenue can take diverse bureaucracy, inclusive of sales, earnings from fees, and income generated via assets.
The three examples of revenue are: hire obtained. the quantity acquired from a one-time sale of an asset. hobby received from financial institution bills. when comparing sales vs profits you should know that “sales” refers to the entire sum of money a company generates earlier than eliminating any prices. “profits”, then again, is the same as sales minus the expenses of doing commercial enterprise, inclusive of depreciation, interest, taxes, and other prices.
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A good brand has which of the following qualities? a. is relevant to the customer b. a direct pathway into the psyche of the customer c. financial connection to the customer d. unites the customer with their inner self
The answer for the given option is A. (Is relevant to the customer)
Main answer:
Jerry McLaughlin said: “brand is the perception someone holds in their head about you, a product, a service, an organization, a cause, or an idea. Brand building is the deliberate and skillful application of effort to create a desired perception in someone else’s mind.”
To have a direct pathway to the customer's psyche, a brand must be relevant to its customer first. Without this relevance, no matter how good the brand is, it would not have the same impact. Therefore, the desired perception would not be met.
Support answer:
There are five core characteristics of a successful brand:
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Which of the following is NOT true about horizontal or vertical analysis? Review Later It is ideal to perform horizontal analysis over a period of at least five years to see the overall trend. Vertical analysis allows the comparison between financial ratios over a certain time period. Horizontal analysis is usually performed after vertical analysis is complete. Vertical analysis evaluates financial statement by expressing each line item as a percentage of the base amount for that period.
Horizontal analysis is usually performed after vertical analysis is complete is NOT true about horizontal or vertical analysis. When reviewing a company's financial statements over a number of periods, horizontal analysis is utilized.
The most common way to represent it is as a percentage increase over the identical line item in the base year. Vertical analysis compares financial statements by showing each line item as a percentage of another line item on the statement. "Horizontal analysis" is frequently used in conjunction with this kind of study. An essential technique for horizontal analysis is trend analysis. In this study, several financial statement items' ratios for various time periods are calculated.
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informtion is unprocessed facts and figures ? true or false
Answer:
FALSE
Explanation:
information is a processed fact or data. while data is an unprocessed fact.
Answer:
false
Explanation:
because it is false
HETWIN is a supermarket chain that operates 500 stores. the companys sales have fallen behind its competitors as it currently does not offer its customers online shopping service. it is considering a proposal to establish an online shopping service using the technology of NOBEL,an existing online retailer.
sales revenue and gross profits
the number of customers using the online delivery service in the first five years is estimated to be as follows
Yr. 1 100,000. customers per week
Yr. 2. 120,000. //
Yr. 3. 150,000. //
Yr. 4. 160,000. //
Yr. 5. 170,000. //
customers are expected to spend an avregae of $200 per week. Delivery to customers will be free of charge. the expected gross profit margin is 20% of selling price
loss of existing in store sales
it is estimated that 30% of customers purching online would habe purchased in store if the online facility was not available. the sales revenue per customer and gross profits margin on online sales will be the same as that for in store sales
capital expenditure
HETWIN will purchase a fleet of delivery vehicles costing $15 million. the vichels will have a useful life for five years and will be depreciated on a stright line basis.they will have no residual value at the end of the five year period. the vehicle will be eligible for tax depreciation.
contract with the online retailer
the contract with NOBEL will be for an initial period of 5 years. HETWIN will pay $340million to buy one of NOBEL existing warehouse. HETWIN will also invest $90million to expand the facility. the expanded warehouse will then be leaseed back to NOBEL for five years for fee of $20million per annum. the cost of purchasing the warehouse and expansion Cost will not be eligible for tax depreciation the warehouse will have a realisable value of $350million at the end of the five years period. HETWIN will pay 1% of gross profit from the online business to NOBLE. HETWIN wi also pay a fee of & 30million per annum to license the technology and as a contribution towards NOBEL research and development costs.
other operating costs
the online operation will result I. additional costs in the five year of & 60million, including delivery costs but excluding depreciation. this amount will raise by $5million each year as a customer numbers increase.
taxation
HETWIN fianacial director has provided the following taxation information:
* tax depreciation: 25% per annum of the reducing balance, with a balancing adjustment in the year of disposable
* taxation rate: 30% of taxable profotits. half of the tax is payable in the year in which it arises., the balance is paid in the following year.
* HETWIN has sufficient taxable profits from other parts of its business to enable the offset of any pre tax losses on this project
other information
* a cost of capital is 12%. per annum is used to elevate the project of this type.
* ignore inflation
Required
evaluate HETWIN using the discounted cash flow model if growth rate is 5%
The Millennium Technological Prize is a technology prize as opposed to the Nobel Prize, which is a science honor.
What Is a Nobel Prize for technology?In contrast to the Nobel Prize, which is given for science, the Millennium Technology Prize is given for technology. In addition, while the Nobel Prize is given for fundamental research, the Millennium Technology Prize may go to a recently conceived innovation that is still under development.When he passed away in 1896, Swedish chemist, inventor, engineer, businessman, and inventor Alfred Nobel held 355 patents worldwide. He experimented with creating synthetic leather, rubber, and silk among many other things. He also created dynamite.Of explosives It was the first step toward what would turn out to be his greatest achievement: the creation of dynamite. In 1867, Alfred Nobel received a patent for his nitroglycerine-based explosive, dynamite.To Learn more About Nobel Prize refer to:
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1. List some of the tools that organizations can use to make the most of its
diverse workforce.
2. define the term diversity in todays context.
3. explain the different types of organizations that result from prevailing assumptions about people and cultures. compare and contrast how minorities are treated in each case
Some of the tools that organizations can use to make the most of its diverse workforce are, assessing the organization's progress toward goals, attracting the employees, retaining employees, etc.
An organization's plan in order to become multicultural and making the most of its diverse workforce should includes the given components, such as: securing top management's leadership and commitment, progress toward goals, attracting employees, and training employees in diversity,
Diversity is the range of human differences. However, having a range of people with various racial, ethnic, cultural, and socioeconomic backgrounds with various lifestyles, interests, and experience.
There are certain different types of organizations that result from prevailing assumptions about people and cultures. A monolithic organization tend to have a very little cultural integration, here its employee population is highly homogeneous.
Hence, in multicultural organizations, diversity not only exists but is also valued.
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Suppose a dramatic increase in stock prices increases the real wealth of most households . Using the AD / AS model , illustrate and explain what the likely effect on the equilibrium level of GDP , price level , and unemployment is .
Real wealth would decline, current spending would decline, and saving would rise. Whatever wealth a person has will be worth less in real terms as prices rise. This is due to the fact that a rise in price levels results in a decrease in the value of money.
Households and commercial enterprises endeavor to when the price level rises.E) An excessive demand for money results in bond purchases, which raise interest rates. 52) Ceteris paribus, as the price level rises, households and businesses attempt to A) lower their cash balances, which raises interest rates.
How are actual wealth and total demand impacted by a drop in price level?The real wealth effect is based on the idea that it costs less money to purchase goods and services when prices are lower. You feel wealthy and your money is now worth more. Thus, real GDP will rise in reaction to a drop in the price level.
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On January 2, year 1, Union Co. purchased a machine for $264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 2, year 4, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $24,000. An accounting change was made in year 4 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, year 4, of
The accumulated depreciation for the machine on Dec 31, Year 4 should be $146,000.
From 1/2/Y1 to 12/31/Y3, depreciation was recorded using an eight-year span on straight line method. Yearly depreciation was $33,000 ($264,000÷8), and accumulated depreciation at 12/31/Y3 was $99,000 ($33,000÷3). In year 4, the estimated useful life was amended and changed to six years total with a salvage value of $24,000.
Therefore, the 12/31/Y3 book value $165,000 ($264,000-$99,000) is depreciated down to the $24,000 salvage value over a remaining useful span of 3 years (6 years total-3 years already recorded). The year 4 depreciation expense is $47,000 [($165,000-$24,000) ÷ 3], thereby increasing accumulated depreciation to $146,000 ($99,000 + $47,000).
Therefore, the accumulated depreciation for the machine on Dec 31, Year 4 should be $146,000.
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