Answer:
The answer is "50%"
Explanation:
Modify the state budget Act of 1974 to boost the FY in 1994 and 1995. It is the maximum federal debt quantity and also to set these other quantities for FY 1996 to 1998. Repudiates in the 1994 and 1995 boundaries on consumption spending.
In the Act of 1993, it modifies the 1986 active losses restrictions so, that it allowed rental damages from other revenues to also be deducted from persons who significantly participated such rental properties.
The person may allocate 50% to his time towards services rendered throughout a tax year from the business.
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. The firms that employ designers of normal ability each collect $400,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,000,000 in revenue a year.
Required:
a. How much will Jacobs earn?
b. What proportion of his annual salary will be economic rent?
c. Will the advertising company for which Jacobs works be able to earn an economic profit?
Answer:
a. $700,000
b. 6/7 or 85.7%
c. No they will not.
Explanation:
a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.
Incremental income = Revenue with Jacobs - Revenue without Jacobs
= 1,000,000 - 400,000
= $600,000
Jacobs earnings = Normal designer earnings + incremental income
= 100,000 + 600,000
= $700,000
b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.
Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.
Proportion of Jacobs salary that is economic rent = [tex]\frac{Economic rent}{Jacobs annual earning}[/tex]
= [tex]\frac{600,000}{700,000}[/tex]
= 6/7 or 85.7%
c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.
Find end inventory and cost of goods
Date Transactions Units Unit Cost Total Cost
June 1 Beginning inventory 16 $ 340 $ 5,440
June 7 Sale 11
June 12 Purchase 10 330 3,300
June 15 Sale 12
June 24 Purchase 10 320 3,200
June 27 Sale 8
June 29 Purchase 10 310 3,100
$ 15,040
Answer:
End inventory = $4,730
Cost of goods sold = $10,310
Explanation:
Note: This question is not complete. The complete question is therefore provided in the attached Microsoft word document before answering the question as follows:
a. Calculation of ending inventory
Number of units of Beginning inventory remaining unsold = 16 - 11 - 3 - 1 = 1 unit
Value of number of units Beginning inventory remaining unsold = 1 * $340 = $340
Number of units June 12 Purchase remaining unsold = 10 - 9 = 1 unit
Value of number of units June 12 Purchase remaining unsold = 1 * $330 = $330
Number of units of June 24 Purchase remaining unsold = 10 - 7 = 3 units
Value of number of June 24 Purchase remaining unsold = 3 * $320 = $960
Value of number of June 29 Purchase remaining unsold = 10 * $310 = $3,100
Therefore, End inventory is the addition of all the values of units remaining unsold as follows:
End inventory = $340 + $330 + $960 + $3,100 = $4,730
b. Calculation of cost of goods sold
June 7 cost of goods sold = 11 * $340 = $3,740
June 15 cost of goods sold = (3 * $340) + (9 * $330) = $3,990
June 27 cost of goods sold = (1 * $340) + (7 * $320) = $2,580
Cost of goods sold can therefore be calculated as follows:
Cost of goods sold = June 7 cost of goods sold + June 15 cost of goods sold + June 27 cost of goods sold = $3,740 + $3,990 + $2,580 = $10,310
Short-term notes payable: Multiple Choice Cannot replace an account payable. Can be issued in return for money borrowed from a bank. Are not negotiable. Are a conditional promise to pay. Rarely involve interest charges.
Answer:
Can be issued in return for money borrowed from a bank.
Explanation:
The short term note payable is a note payable that can be issued against the borrowed amount. Since it is short term so its duration is within one year and it is an amount of loan in which the person has to pay within the specified time period along with the interest charges. It is shown in the liabilities side of the balance sheet
Hence, the second option is correct
When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversion cost per equivalent unit, an investigation may reveal that direct materials costs:_____.
a. will never decrease due to the way the cost is calculated.
b. will never increase due to the way the cost is calculated.
c. may increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
d. will only increase if conversion costs increase as well.
Answer:
The correct answer is the option C: May increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
Explanation:
To begin with, in the field of business a manager or an account would perfectly know that when using the cost of production report with the purpose to analyze the change in direct materials costs per equivalent unit compared to conversion cost per unit the investigation will reveal that the direct material costs may increase or decrease between periods, depending on the fluctuation of the cost of those materials due to the fact that the fluctuation mentioned will arise if the company starts using more direct material in the production so that means that the volumen will increase as well as the costs of it
Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is true and which one is false? Then again, are they both true or both false? Statement 1: People decide to have fewer children. The demand curve for minivans will shift to the right. Statement 2: The stock market crashes lowering people’s wealth (Hint: Minivan would be considered a normal good). The demand curve for minivans will shift to the right.
Answer:
both statements are false
Explanation:
if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.
also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.
A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $27,000. What is the maturity value of the note on March 1
Answer: $27,900
Explanation:
From the question, we are informed that on November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $27,000.
The maturity value of the note on the note on March 1 will be the face value plus the interest. This will be:
= $27,000 + [($27,000 × 10%)/360 × 120]
= $27,000 + [($2700/360) × 120]
= $27,000 + ($7.5 × 120)
= $27,000 + $900
= $27,900
Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $369,000, $146,000, and $97,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,200, and work in process at the end of the period totaled $28,400.
Required:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Answer:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
Dr Work-in process: Refining Department 369,000
Cr Materials inventory 369,000
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
Dr Work-in process: Refining Department 146,000
Cr Wages payable 146,000
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
Dr Work-in process: Refining Department 97,600
Cr Manufacturing overhead: Refining Department 97,600
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Dr Work-in process: Sifting Department 614,400
Cr Work-in process: Refining Department 614,400
$30,200 - $28,400 + $369,000 + $146,000 + $97,600 = $614,400
Calculate the earnings of workers A, B and C under the Straight Piece
Rate System and Merrick’s Differential Piece Rate System from the
following particulars.
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units.
Working hours per day are 8
Answer:
Earnings of Workers:
Rates Systems
Worker Straight Piece Merrick's Differential Piece
A $35.10 $28.08
B $40.50 $32.40
C $54.00 $64.80
Explanation:
a) Data:
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units
Working hours per day are 8
b) Calculations:
i) Standard units per day = 8 x 60 minutes = 480 units
ii) Earnings per day is as follows.
Worker A – 390 units :
Straight piece Wages = 390 / 60 x $5.40 = $35.10
Merrick's Earnings = 390/60 x $5.40 x 0.8 = $28.08
Worker B – 450 units :
Straight piece Wages = 450 / 60 x $5.40 = $40.50
Merrick's Earnings = 450/60 x $5.40 x 0.8 = $32.40
Worker C – 600 units:
Straight piece Earnings = 600 / 60 x $5.40 = $54
Merrick's Earnings = 600/60 x $5.40 x 1.2 = $64.80
c) The factor for multiplying the rate is obtained by dividing the units produced by the number of minutes in an hour, in order to convert output to a rate based on the hour.
d) The standard output per day helps Merrick in calculating the weights to be assigned to each worker and differentiate the slow worker from the superior worker (hence, the name: Merrick's Differential Piece Rate). The slow workers (those who produce below the standard output) are paid a rate lower than the standard rate by adding a weight of 0.8 as a punishment while the superior worker is assigned a weight of 1.20 as a reward for good performance. Meanwhile, a standard performer who produced 480 units will be paid the normal rate or weighed as 1.0.
The market has an expected rate of return of 11.4 percent. The current nominal expected yield on U.S. Treasury bills is 4.3 percent. The inflation rate is 2.2 percent. What is the market risk premium? (round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)
Answer:
7.1%
Explanation:
According to the CAPM,
expected market return = risk free rate + market risk premium
11.4% = 4.3% + market risk premium
market risk premium = 11.4% - 4.3% = 7.1%
Exercise D Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $100 per unit. Wholesaler Y offers to buy 2,000 additional units at $120 per unit. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit. Which offer, if either, should Viking Corporation accept
Answer:
Results are below.
Explanation:
Giving the following information:
The variable cost is $100 per unit.
Wholesaler Y offers to buy 2,000 additional units at $120 per unit.
Wholesaler Z proposes to buy 1,500 additional units at $140 per unit.
We need to choose the best alternative, in this case, the one with the higher increase in income:
Effect on income= total contribution margin
Wholesaler Y:
Effect on income= 2,000*(120 - 100)= $40,000 increase
Wholesaler Z:
Effect on income= 1,500*(140 - 100)= $60,000 increase
The best option is to sell the units to Wholesaler Z. If Wholesaler Y accepts, you can still sell 500 more units.
Which of the following types of contracts does not fall within the statute of frauds? Select one: A. Contracts not performed within six months B. Contracts for the sale of goods totaling more than $500 C. Contracts for one party to pay the debt of another party if the initial party fails to pay D. Promises made in consideration of marriage E. Agreements related to an interest in land
Answer:
Correct Answer:
C. Contracts for one party to pay the debt of another party if the initial party fails to pay
Explanation:
In a business setting which exist between two parties, when there is a renegation of agreement between the parties involved by one person, then there is consequences. In a situation where the renegation of agreement was deliberate, then, fraud is said to have occurred.
Option C does not fall within the statue of fraud.
The type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
The following are the situations where the fraud could have existed:
Contract not performed for six months. The sale of goods is more than $500.The promise is made for marriage. Agreements are to be done for land.Therefore we can conclude that the type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
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eal per capita GDP in Singapore in 1961 was about $450, but it doubled to about $900.00 by 1978. a. What was the average annual economic growth rate in Singapore over the 17.00 years from 1961 to 1978
Answer:
The answer is 4.16%
Explanation:
Per capita GDP is the average income earned per person in a given country during a given period of time usually a year.
Per capita GDP in Singapore in 1961 equals $450
Per capita GDP in Singapore in 1978 equals $900
Difference between 1978 and 1961 is 17 years.
The formula for economic growth rate is;
[(End value/beginning value)^1)/17] - 1
[($900/$450)^1/17] - 1
1.041613 - 1
0.0416
Expressed as a percentage:
4.16%
You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annual rate of 5.5 percent for 14 years. How much will you have in your account in 25 years?
Answer:
Total value in the account after 25 years = $105,530.26
Explanation:
The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value.
The future value of an investment can be determined using the future value formula. This formula is stated below:
FV = PV × (1+r)^(n)
FV - Future Value , PV- Present Value, r-rate of return, n- number of years
For the first compounding, 6.1% for 11 years
PV - 26,000, r- 6.1% and n- 11
FV = 26,000 × (1.061)^11 = 49,870.367
For the second round of compounding at 5.5% for 14 years
PV - 49,870.367 , r -5.5%, n- 14
FV = 49,870.367× 1.055^14 = 105,530.259
Total value in the account after 25 years = $105,530.26
"If the regulations for environmental protection were strictly adhered to and industries, cities, and individuals considered the environment crucial for survival and a thriving market, what would be the benefits from this change
Explanation:
The benefits arising from complying with an environmental protection regulation would be diverse for society, for companies and for the environment as a whole.
It is ideal to recognize the scarcity of natural resources, and knowing how to preserve them as citizens is everyone's duty. Environmental awareness and compliance with regulations would lead to significant changes in quality of life, air, water, decrease the greenhouse effect, decrease respiratory diseases, etc.
For the industry, complying with environmental regulation makes it better positioned in the market, attracts more investors, motivates employees more, reduces unnecessary risks and costs in addition to enhancing the continuous improvement of processes as a whole.
Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit? Group of answer choices
Answer:
$2,500
Explanation:
The calculation of American opportunity tax credit is shown below:-
According to the given situation, Steve's part-time job wouldn't come in between his not applying for the credit as the AGI is lower than the applying number.
Therefore, the credit would be 100% of first is
= $2,000 + 25% (Increased)
= $2,500
Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two transactions on March 31, assuming the labor costs are not paid until April.
No. Date Account Titles and Explanation Debit Credit
a) Mar. 31
b) 31
Answer:
A. Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. 31
Dr Factory labour $61,300
Cr Factory wages $61,300
Explanation:
Preparation of the Journal entries for Sunland Company
A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:
Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:
31
Dr Factory labour $61,300
Cr Factory wages $61,300
For much of the 1990s, the U.S. economy was experiencing long-run economic growth, low unemployment, and a stable inflation rate. Which of the following would give rise to these outcomes?
A. an increase in aggregate demand and short-run aggregate supply
B. a decrease in aggregate demand and short-run aggregate supply
C. a decrease in aggregate demand and an increase in short-run aggregate supply
D. an increase in aggregate demand and a decrease in short-run ag
Answer: . an increase in aggregate demand and short-run aggregate supply
Explanation:
From the question, we are informed that during the 1990s, the economy of the United States was experiencing long-run economic growth, low unemployment, and a stable inflation rate.
The reason for this is due to an increase in aggregate demand and short-run aggregate supply. This two factors will lead to the long run economic growth which the United States experienced.
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 = $0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.29% 9.68% 10.08% 10.50% 10.92%
Answer:
10.50%
Explanation:
According to the given situation, the solution of cost of equity from retained earning is shown below:-
Cost of equity = (D0 × (1 + g) ÷ P0) + g
Now we will put the values into the above formula.
= (0.90 × (1 + 0.07) ÷ 27.50) + 0.07
= 10.50%
Therefore for determining the cost of equity from retained earning we simply applied the above formula.
Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.
Answer:
$13,000
Explanation:
The total budgeted cost is $15,000
The cumulative actual cost is $10,000
The cumulative earned value is $12,000
Therefore, the forecasted cost at completion can be calculated as follows
= Cumulative actual cost + ( Budgeted cost-Cumulative earned value)
= $10,000 + ($15,000-$12,000)
= $10,000 + $3,000
= $13,000
Hence the forecasted cost at completion is $13,000
Zarina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $15,000 in its bank account. The note has a two-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Zarina Corp.
Required:
1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2. Prepare the journal entry on January 1, 2018, the adjusting journal entry to accrue interest on March 31, 2018. Assuming the journal entry from requirement 3 also is recorded on June 30, September 30, and December 31, 2018, prepare the journal entry to record the first annual installment payment on December 31, 2018.
3. Calculate the amount of interest expense that should be accrued for the quarter ended March 31, 2019.
Answer:
1)
the annual installment = $7,952.94
total Interest paid = $905.88
Year Beginning Interest Repaid Ending
Notes Payable Expense Principal Notes Payable
1 $15,000 $600 $7,352.94 $7,647.06
2 $7,647.06 $305.88 $7,647.06 $0
2)
March 31, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
June 30, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
September 30, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
December 31, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
December 31, 2018, first installment on notes payable
Dr Notes payable 7,352.94
Dr Interest payable 600
Cr Cash 7,952.94
3)
March 31, 2019, accrued interests on notes payable
Dr Interest expense 76.47
Cr Interest payable 76.47
1. The Amortization schedule is:
Year Beginning Notes Interest expense Repaid Principle Ending notes
Payable on notes payable Payable
2018 15,000 600 7,353 7,647
2019 7,647 306 7,647 0
The annual payment is an annuity and can be found as:
Loan= Annuity x Present value interest factor of annuity, 4%, 2 years
15,000 = Annuity x 1.886
Annuity = 15,000 / 1.886
= $7,953
Principal repaid in first year = Amount paid - interest
= 7,953 - (15,000 x 4%)
= 7,953 - 600
= $7,353
Principal repaid in second year
= 7,953 - (4% x 7,647)
= $7,647
2.
Date Account title Debit Credit
Jan 1, 2018 Cash $15,000
Notes Payable $15,000
Date Account title Debit Credit
March 31, 2018 Interest expense $150
Interest payable $150
Working:
= Loan amount x Rate x period of loan so far
= 15,000 x 4% x 3/ 12 months
= $150
Date Account title Debit Credit
Dec 1, 2018 Interest payable $600
Notes payable $7,353
Cash $7,953
3. Interest accrued March 31,2019:
= Loan amount in second year x 4% x 3/12 months
= 7,647 x 4% x 3/12
= $76
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Wagner Enterprises and Stone Services both disposed of an old asset. When completing the journal entry, Wagner Enterprises included a debit to Cash, but Stone Services did not. Why would the companies have this difference in the journal entry
Answer:
Wagner Enterprises and Stone Services
Disposal of old asset:
It could be that Stone Services exchanged its old asset with a new one with a company. In that situation, the debit goes to New Equipment, while the credit is to the old Equipment. Another reason could be that Stone Services sold the old asset on account. In this situation, the debit goes to the Accounts Receivable account, while the old asset is credited accordingly.
Explanation:
When a company disposes of an old asset, it credits the asset account and transfers the amount to the Sale of Asset account. The same is done for the accumulated depreciation, in reverse. When cash is realized from the disposal, the Sale of Asset account is credited, while Cash account is debited. Then, the difference in the Sale of Asset account will be a gain or a loss, depending on the net book value and the cash realized from the sale.
Classify each of the tasks according to whether or not they are tasks of the Federal Reserve. Tasks of the Federal Reserve Not tasks of the Federal Reserve
Answer:
Tasks of the Federal Reserve
Managing the U.S. Money Supply - one of the main functions of the Federal Reserve is managing the money supply: the quantity of money that there is in the economy. The Federal Reserve can either increase or contract the money supply.
Printing paper currency - when the Federal Reserve increases the money supply, part of that supply is printed as paper currency.
Acting as a lender of last resort - when commercial banks or governments do not have any other creditor, they turn to the Federal Reserve, which has the obligation to act as a lender of last resort.
Engaging in monetary policy - this is the reason why the Federal Reserve exists in first place. The main activity of the Fed is to engage in monetary policy, mainly with the goal of controlling inflation, and easing economic cycles.
Not tasks of the Federal Reserve
Creating the federal budget - the federal budget is developed by the president, and also by the Congress.
Engaging in fiscal policy - fiscal policy is responsability of the president, and the Congress.
Managing Europe's money supply - The Federal Reserve only manages the money supply of the United States. Europe's money supply is managed by the European Central Bank in the case of the Eurozone, and by different national central banks in the case of countries that are not part of the Euro.
Answer:
Tasks of the Federal Reserve:
Managing the US money supply
Acting as a lender of last resort
Engaging in monetary policy
Not tasks of the Federal Reserve:
Creating the federal budget
Printing paper currency
Engaging in fiscal policy
Managing India’s money supply
A firm currently sells $1,750,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $380,000. The discount line is expected to reduce sales of the expensive product line to $1,575,000. What is the incremental revenue associated with the discount product line?
Answer:
$175,000
Explanation:
A firm currently makes an amount of $1,750,000 annually from an expensive product line
The firm projects a sales of $380,000
The discount line is expected to cause a reduction in the sales of the expensive product line to $1,575,000
Therefore, the incremental revenue associated with the discount product line can be calculated as follows
= $1,750,000-$1,575,000
= $175,000
Hence the incremental revenue associated with the discount product line is $175,000
A mutual fund sponsor has three different income funds, holding AAA rated debt securities with similar maturities. Assuming that the expense ratios for the funds are identical, which fund would have the lowest yield from investment income?
Answer: C. Municipal Bond Fund
Explanation:
Municipal Bonds would be the fund with the lowest yield from investment income. This is assuming they are all AAA rated debt securities with similar maturities. This is because Municipal bonds are tax exempt and not very risky so their yields will be quoted as less as they do not have to compensate investors on tax losses.
Corporate Bonds are the riskiest of the options given so they will have the highest yield as they have to compensate for both risk and taxes.
Government Bonds are considered very low when it comes to risk but they are taxed by the Federal Government so have higher yields to compensate for tax.
If the Fed lowers the interest rate, then A. only consumption expenditure decreases. B. only investment decreases. C. consumption expenditure decreases and investment increases. D. net exports will increase. E. both consumption expenditure and investment decrease.
Answer: D. net exports will increase.
Explanation:
Lower interest rates decrease the value of a currency because less investors will invest in it. This reduced currency value will mean that exports will become cheaper as they are quoted in the domestic currency. As the exports are cheaper, more countries will buy them leading to an increase in Net exports.
Calculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when computing tax rates. For example, 8.25% should be entered as "8.25" and not "0.825")
Total Taxable Income Total Tax Due Average Tax Rate Marginal Tax Rate
(Dollars) (Dollars) (Percentage) (Percentage)
0 0 0 0
2,000 130
10,000 650
20,000 1,300
100,000 6,500
The tax rates shown in this table are:________.
True or False: If the marginal tax rate is equal to the average tax rate, then the average tax rate must remain the same.
A. True
B. False
Sean, Yvette, and Bob are the only voters in a small society and are considering whether to publicly finance a project.
Indicate in the following table what each individuals vote would be and whether the public project will be funded
Name Marginal Cost Marginal Benefit Vote
Sean $100 $108
Yvette $100 $12
Bob $100 $125
Total $300 $245
If this same project were taking place in the private sector, a firm ________ fund the project.
In private markets, decisions to provide goods or services to the market are generally made if marginal benefits ________ marginal costs. in comparison, the decisions to provide goods and services by governments are made through _______. as a result, governments may approve projects whose costs _________ their benefits.
Answer:
1. a. Average Tax rate = 130/2,000 = 6.5%
Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%
b. Average Tax rate = 650/10,000 = 6.5%
Marginal Tax Rate = [tex]\frac{650-130}{10,000-2,000}[/tex] = 6.5%
c. Average Tax rate = 1,300/20,000 = 6.5%
Marginal Tax Rate = [tex]\frac{1,300-650}{20,000-10,000}[/tex] = 6.5%
d. Average Tax rate = 6,500/100,000 = 6.5%
Marginal Tax Rate = [tex]\frac{6,500-1,300}{100,000-20,000}[/tex] = 6.5%
2. The tax rates shown in this table are: Proportional
Proportional Taxes take the same percentage of income across all income groups.
3. A. True
4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.
5. If this same project were taking place in the private sector, a firm would not fund the project.
6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits exceed marginal costs
7. As a result, governments may approve projects whose costs exceed their benefits.
Following are the transactions of a new company called Pose-for-Pics.
Aug.1 Madison Harris, the owner, invested $8,300 cash and $35,300 of photography equipment in the company in exchange for common stock.
2 The company paid $3,900 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,060 cash.
20 The company received $5,131 cash in photography fees earned.
31 The company paid $855 cash for August utilities.
1 Madison Harris, the owner, invested $8,300 cash and $35,300 of photography equipment in the company in exchange for common stock.
2 The company paid $3,900 cash for an insurance policy covering the next 24 months.
3 The company purchased office supplies for $1,060 cash.
4 The company received $5,131 cash in photography fees earned.
5 The company paid $855 cash for August utilities.
Question Requirement:
Prepare an August 31st Trial Balance
Answer:
Pose-for-PicsTrial Balance as of August 31st
Description Debit Credit
Cash $7,616
Photography Equipment 35,300
Common Stock $43,600
Prepaid Insurance 3,900
Supplies 1,060
Photography fees earned 5,131
Utilities 855
Total $48,731 $48,731
Explanation:
a) Common Stock
Cash 8,300
Equipment 35,300
Total 43,600
b) Cash account:
Common stock $8,300
Insurance (3,900)
Supplies (1,060)
Fees 5,131
Utilities (855)
Balance $7,616
c) A trial balance is a list of general ledger balances at the end of a period. It is an accounting tool to ensure that the two sides of the double entry bookkeeping are in balance. Discrepancies are sorted out, if any. It forms the basis for preparing the financial statements whereby temporary accounts are transferred to the income summary while the permanent accounts are taken to the balance sheet, after all adjustments have been made.
A stock has an expected return of 13 percent, the risk-free rate is 4.1 percent, and the market risk premium is 5.3 percent. What is the stock's beta?
Answer:
Stock Beta = 1.68
Explanation:
The expected return on stock can be estimate using te capital asset pricing model (CAPM).
The capital pricing model establishes the relationship between expected return from a stock and its systematic risk . The systematic risk is that which affects all players (businesses and firms) in the entire market, such risks are occasioned by changes in interest rate, exchange rate e.t.c
According to the model , the expected return is computed as follows
E(r) = Rf + β(Rm-Rf)
Rf- risk -free rate, Rm-Rf - market premium , β- beta
DATA:
E(r) = 13%, Rm-Rf = 5.3 , risk-free rate- 4.1%, β?
Applying this model, we have
13% = 4.1% + β× (5.3%)
0.13 = 0.041 + 0.053β
Collecting like terms
0.053β= 0.13 - 0.041
divide both sides by 0.053
β= (0.13 - 0.041)/0.053
β = 1.679
Stock Beta = 1.68
Consider the circular flow model to answer the questions that follow.
a. In the circular flow model, households provide inputs to firms through the _____________ and in exchange receive _____________ from firms.
b. In the circular flow model, firms receive ___________ from households when households purchase goods and services in the
Answer:
The answer is :
A. Resource market - income
B. Expenditure - product market.
Explanation:
A. Resource market - income
B. Expenditure - product market
The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.
A.
In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).
B.
Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)
The Grondas, who owned a party store along with land, fixtures, equipment, and a liquor license, entered into a contract to sell their liquor license and fixtures to Harbor Park Market in an agreement that was expressly conditioned on approval by the Grondas' attorney. The Grondas submitted the contract to their attorney but before the attorney had approved it, they received a second, better offer and submitted that contract to the attorney as well. The attorney reviewed both agreements and approved the second one. Harbor Park Market sued the Grondas for breach of contract. Will their suit succeed?
Answer:
No the suit will not succeed as their is no agreement
Explanation:
The contract was conditional contract. As the condition explicitly said that, the right to agree on terms and conditions is explicitly attorney's right. When the attorney has not agreed on the terms and conditions of Harbor Park, the company hasn't formed any contract. Furthermore, there is no limitation on Grondas to consider other available options and attorney is also not obliged to agree to Harbor's offer.
Thus the suit that says Grondas has breached the contract is meaningless and will not succeed in the court.