Prepare journal entries to record the following four separate issuances of stock. A corporation issued 7,000 shares of $20 par value common stock for $168,000 cash. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $34,000. The stock has a $1 per share stated value. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $34,000. The stock has no stated value. A corporation issued 1,750 shares of $25 par value preferred stock for $77,750 cash.

Answers

Answer 1

Answer: Please see explanation column for answer

Explanation:

1. For shares issued in excess of par value common stock

Amount                          Debit                           Credit

Cash                            $168,000

Common stock  at $20 ( 7000 x 20)              $140,000

Paid in excess of par value common stock

(168,000 - 140,000)                                          $28,000

2. For shares issued to Promoters at stated value

Amount                                    Debit                             Credit

Organisational expenses       $34,000

Common stock  at $1 ( 3,500x 1)                               $3,500

Paid in capital in excess of stated value

common stock(34,000 - 3,500)                               $30, 500

3. For shares issued to Promoters at no stated  value

Amount                                               Debit                    Credit

Organisational expenses                $34,000

Common stock  at $1 no par value                               $34,000

4.For shares issued in excess of par value preferred  stock

Amount                          Debit                                  Credit

Cash                              $77,750

preferred  stock  at $25(1,750 x 25)                         $43,750

Paid in capital in excess of par value

Preferred stock(77,750 -43,750)                               $34,000


Related Questions

A project has estimated annual net cash flows of $56,600. It is estimated to cost $339,600.

Required:
Determine the cash payback period.

Answers

Answer:

It will take exactly 6 full years to cover for the initial investment.

Explanation:

Giving the following information:

Cash flow= $56,600

Initial investment= 339,600

The payback period is the time required for the cash flow to cover the initial investment:

Year 1= 56,600 - 339,600= -283,000

Year 2= 56,600 - 283,000= -226,400

Year 3= 56,600 - 226,400= -169,800

Year 4= 56,600 - 169,800= -113,200

Year 5= 56,600 - 113,200= -56,600

Year 6= 56,600 - 56,600= 0

It will take exactly 6 full years to cover for the initial investment.

Suppose your yearly demand for renting DVDs is Q = 20 − 4P. If there is a rental club that charges $2 per rental plus an annual membership fee, what is the most that you would be willing to pay for the annual membership fee?

Answers

Answer:

$12

Explanation:

If P = $2 then the Q will be;

Q = 20 - 4 * 2

Q = 20 - 8

Q = 12

The maximum annual membership fee will be equal to the amount of demand. The annual membership fee cannot be greater than the demand function if so there will be decline in the demand.

Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases?

a. All low-income countries are catching up to all high-income countries.
b. Low-income industrial countries are catching up to high-income developing countries.
c. Low-income developing countries are catching up to high-income industrial countries.
d. Low-income industrial countries are catching up to high-income industrial countries.

Answers

Answer:

Correct Answer:

c. Low-income developing countries are catching up to high-income industrial countries.

Explanation:

The evidence which shows that low income developing countries are catching up to high-income industrial countries could be found in the series of developmental strides made by some countries like Rwanda, Kenya, Tanzania, Indonesia, Vietnam etc over the years. Most of their achievements is at par with most European countries in different sectors such as educational, and social sectors.

Your client is 40 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average return of 9% in the future.

Answers

Answer:

14,000

Explanation:

im smart

You must decide between $25,000 in cash today or $30,000 in cash to be received two years from now. If you can earn 8 percent interest on your investments, which is the better deal?

Answers

Answer:

The deal to receive $30000 is better.

Explanation:

To find the better deal we need to calculate the present value of $30000 and then compare it with the amount $25000. If the amount is greater than the $25000, then the amount should be received after the 2 years.

The given time period (n )= 2

Interest rate (r ) = 8%

The amount received after 2 years = $30000

[tex]\text{Present value of money} = \frac{Future \ value}{(1 + r)^n } \\= \frac{30000}{(1+0.08)^2} \\= $25720.16[/tex]

Since the amount is more than $25000 so the deal to receive the money after 2 years will be better.

A subcontractor is responsible for outfitting six satellites that will be used for solar research. Four of the six have been completed in a total of 600 hours. If the crew has a 75% learning curve, how long should it take them to finish the last two units?

Answers

Answer: ∑Tₓ = 201.222

time required to complete the last two units is 201.222 minutes

Explanation:

Given that,

total time required to four units is 600 hours,

Learning curve applied is 75% and from the learning curve coefficient table, total time factor to complete four units at 75% learning curve is 2.946

so

∑Tₙ = T₁ × total time factor

{ ∑Tₙ is total time required to complete all the units which is 600 hrs, T₁ is Time for first unit, total time factor = 2.946 }

we substitute

∑T₄ = ∑T₁ × total time factor

600 = ∑T₁ × 2.946

∑T₁  = 600/2.946

∑T₁  = 203.666 minutes

Now to get the total time required to complete 6 units, we say:

∑T₆ = ∑T₁ × total time factor

Note that total time factor at this point changes;

( from the learning curve coefficient table, total time factor to complete 6 units at 75% learning curve is 3.934)

so we substitute

∑T₆ = 203.666 × 3.934

∑T₆ = 801.222

Now to find how long should it take them to finish the last two units, we say

∑Tₓ = ∑T₆ - ∑T₄

∑Tₓ = 801.222 - 600

∑Tₓ = 201.222

Therefore time required to complete the last two units is 201.222 minutes

The time required to complete the last two units is 201.222 minutes

Given data

Total time required to four units is 600 hours

Learning curve applied is 75% and 75% learning curve is 2.946

∑Tₙ = T₁ × total time factor

{ ∑Tₙ is total time required to complete all the units which is 600 hrs, T₁ is Time for first unit, total time factor = 2.946 }

we substitute

∑T₄ = ∑T₁ × total time factor

600 = ∑T₁ × 2.946

∑T₁  = 600/2.946

∑T₁  = 203.666 minutes

Now to get the total time required to complete 6 units, we say:

∑T₆ = ∑T₁ × total time factor

so we substitute

∑T₆ = 203.666 × 3.934

∑T₆ = 801.222

Now, we will find how long should it take them to finish the last two units

∑Tₓ = ∑T₆ - ∑T₄

∑Tₓ = 801.222 - 600

∑Tₓ = 201.222

In conclusion, the time required to complete the last two units is 201.222 minutes

Read more about Learning curve

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Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be ______, and the gross profit must be ______. Review Later

Answers

Answer:

Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be 40%, and the gross profit must be $17,250.

Explanation:

The income statement is missing, so I looked it up and the information given was:

Revenue 100,000 COGS 40,000 Gross Profit 60,000 Salaries Marketing Rent Earnings Before Tax 23,000Income Tax 25% Net Income ?

Since COGS are$40,000 and total sales are $100,000, the COGS margin percentage = 40,000 / 100,000 = 40%

Since earnings before taxes are $23,000 and taxes are 25%, then net income = $23,000 x (1 - 25%) = $23,000 x 75% = $17,250

Granger Inc. Comparative Balance Sheets December 31

Assets 2017 2016
Cash $80,800 $48,400
Accounts receivable 87,800 38,000
Inventory 112,500 102,850
Prepaid expenses 28,400 26,000
Long-term investments 138,000 109,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750

Liabilities and Stockholders' Equity
Accounts payable $102,000 $67,300
Accrued expenses payable 16,500 21,000
Bonds payable 110,000 146,000
Common stock 220,000 175,000
Retained earnings 234,000 105,450
Total $682,500 $514,750


Granger Inc. Income Statement Data For the Year Ended December 31, 2017

Sales revenue $388,460

Less:
Cost of goods sold $135,460
Operating expenses, excluding depreciation 12,410
Depreciation expense 46,500
Income tax expense 27,280
Interest expense 4,730
Loss on disposal of plant assets 7,500 233,880
Net income $154,580

Additional information:

1. New plant assets costing $90,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $51,750 and accumulated depreciation of $43,650 were sold for $1,350 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $23,427 was declared and paid during the year.

Required:
Prepare a statement of cash flows for Granger Inc. using the direct method.

Answers

Answer:

                                       GRANGER INC.

       STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

                  FOR THE YEAR ENDED DECEMBER 31, 2017

                Particulars                                                    Amount$

Cash flow from operating activities

Net Income                                                                    154,580

Adjustments to reconcile net income to net cash

provided by operating activities  

Adjustment for non cash effects

Depreciation expense                                                   46,500

Loss on sale of plant assets                                           7,500

Change in operating assets & liabilities

Increase in Accounts receivable                                  -49,800

Increase in inventory                                                      -9,650

Increase in prepaid expenses                                        -2,400

Increase in accounts payable                                         34,700

Decrease in accrued expenses payable                       -4,500

Net cash flow from operating activities (a)                 176,930

Cash Flow from Investing activities

Old Plant assets sold                                                       1,350

New plant assets purchased                                         -90,000

Long-term investments purchased                                -29,000

Net cash Flow from Investing activities (b)                -117,650

Cash Flow from Financing activities

Cash dividends paid                                                        -23,427

Common stock issued                                                      45,000

Bonds paid                                                                        -36,000

Net cash Flow from Financing activities (c)                 -14,427

Net Change in cash c=a+b+c                                            44,853

Add: Beginning cash balance                                           48,400

Closing cash balance                                                        93,253

Yellowstone Corporation has just announced the repurchase of $125,000 of its stock. The company has 39,000 shares outstanding and earnings per share of $3.29. The company stock is currently selling for $76.09 per share. What is the price–earnings ratio after the repurchase?

Answers

Answer:

The price–earnings ratio after the repurchase is 22.18

Explanation:

First calculate Numbers of new shares

New Shares = Old Shares - ( Repurchased Shares / Price per share )

New Shares = 39,000 - ( $125,000 / $76.09 )

New Shares = 39,000 - 1,642.79

New Shares = 37,357.21 shares

New compute the old earning

Old  Earning = EPS x Numbers of old shares = $3.29 x 39,000 = $128,310

New compute revised Earning per share

Revised EPS = Earning / New shares = $128,310 / 37,357.21 shares = $3.43

Now we need to calculate the Price earning ratio

P/E Ratio = Price per share / Revised earning per share = $76.09 / $3.43 = 22.18 times

Sand Key Development Company estimates that it will generate an operating income of $7.25 million. Which financing option should Sand Key use?

Answers

Answer: debt financing option

Explanation:

Debt financing is a way by which an economic agent such as the individual, firm or the government gets enough money in order to meet a particular need.

Debt financing can be through loans from family and friends, personal loans, bank loans, credit cards etc. Since Sand Key Development Company estimates that it will generate an operating income of $7.25 million, the company can use debt financing.

Sarah takes out a loan today for $26,000 at an interest rate of 2 percent a year. She plans to repay the loan after 5 years. How much will he have to pay?
Sarah will have to pay:__________

Answers

Answer:

$28,706.10

Explanation:

The computation of the amount of pay is shown below:

Here we have to find the future value by using the following formula

Future value = Present value × (1 + interest rate)^number of years

= $26,000 × (1 + 0.02)^5

= $28,706.10

We simply applied the above formula so that the amount of pay could be come and the same is to be considered

If an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000:_______

a. either a one-tailed or two-tailed test could be used with equivalent results.
b. a one-tailed test should be utilized.
c. a two-tailed test should be utilized.
d. None of the above.

Answers

Answer: one tailed test should be utilized

Explanation:

From the question, we are informed that an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000.

A one tailed test should be utilized because the region of rejection will just have to be based on one side.

"In the long-run, monopolistically competitive firms: have excess capacity. produce at the minimum of average total cost. charge prices equal to marginal cost. both B and C are true."

Answers

Answer:

The correct answer is the option D: Both B and C are true.

Explanation:

To begin with, a monopolistically competitive firms is the one that produces in a market in where the other companies sell a pretty similar but different product and there are a lot of buyers so the most important way to difference themself is by the publicity or the identification of the brand in the mind of the consumers. Moreover, in this type of market in the long-run equilibrium the price if equal to the marginal cost and also to the minimun of the average total cost so therefore that it is said that there are zero economic profit

Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame. For the month of June, the company planned for activity of 716 frames, but the actual level of activity was 713 frames. The actual supplies cost for the month was $14,820. The supplies cost in the flexible budget for June would be closest to:

Answers

Answer:

c. $ 14,238

Explanation:

Computation of costs in the flexible budget

Planned activity                                                           716 units

Budgeted cost per unit                                              $ 18 per frame

Total planned variable cost - 716 units * $ 18            $ 12,888

Fixed monthly cost                                                      $   1,350        

Total supplies cost in  flexible budget for June      $ 14,238  

The other information regarding the actual costs and actual production are not required for determining the budgted cost for supplies.

g A company's most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is: Group of answer choices

Answers

Answer:

0.73

Explanation:

Debt to equity ratio is calculated as Total debt / Total equity

= $0.8 million / $1.1 million

= 0.73

Therefore, debt to equity ratio is 0.73

Company expects to sell units of finished product in and units in . The company has units on hand on 1 and desires to have an ending inventory equal to ​% of the next​ month's sales. sales are expected to be units. Prepare ​'s production budget for and .

Answers

Complete Question:

Yasmin Company expects to sell 1,900 units of finished product in January and 2,250 units in February. The company has 270 units on hand on 1st January and desires to have an ending inventory equal to 20% of the next​ month's sales. March sales are expected to be 2,350 units. Prepare Yasmin's production budget for January and February.

Answer:

680 Units for January and 250 units for February.

Explanation:

Production Budget can be calculated using the following formula:

Production Budget   =     Expected Sales + Desired Ending Inventory Units - Opening Inventory

The formula is reflected in a tabular form below:

Production Budget For Yasmin Incorporation

                                                                January          February

Expected Future Sales (Unit)                     900                 250

Add: Desired Ending Inventory Units         50                   70  

Less: Openning Inventory Units                270                 70      

Production Units                                         680                 250

When Production decreases what is a very likely possibility? a hire new workers b expand production c purchase new equipment d downsizing

Answers

The correct answer is D. Downsizing

Explanation:

In businesses, the term "downsizing" is used to describe a reduction in the number of workers or the total labor force. This often means non-essential workers are fired or even complete departments are eliminated. Moreover, this is likely to occur if the business expenses are higher than its profits or if the production decreases because in both situations fewer workers are needed to eliminate unnecessary expenses. In this context, if production decreases it is likely downsizing occurs.

What is the yield to maturity of a ​-year, bond with a ​% coupon rate and semiannual coupons if this bond is currently trading for a price of ​?

Answers

What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi-annual coupons if this bond is currently trading for a price of $4876?

A) 6.30%

B) 4.50%

C) 4.30%

D) 5.07%

E) 8.60%

Answer:

5.07%

Explanation:

Given the following parameters from the question:

Number of years = 5

N => Number of compounding periods = 5 * 2 = 10

FV => Face Value = $5,000

PV => Present Value = $4876

Percentage rate = 4.5%

PMT => Annuity Payment = Face Value * percentage

=> 5,000 * 0.045 = 225

Given that, it is semi annual rate, we have 225 / 2 = 112.5

CPT YTM or I/Y => Yield to Maturity = 2.53 * 2 = 5.07%

Hence, the final answer is 5.07%

15. Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement

Answers

Answer: $3,455

Explanation:

The interest received by Smith can be calculated as;

Interest Value = Present value of lease payment * interest rate

Present Value of interest rate

Ten annual lease payments of $12,000 are due each year beginning July 1, 2021.

That means first payment has been made already. Present value is;

= 81,100 - 12,000

= $69,100

Only half a year has gone by so this will need to be reflected;

Interest Value = Present value of lease payment * interest rate

= 69,100 * 10% * 6/12

= $3,455

A firm has a debt-to-equity of 0.69 and a market-to-book ratio of 3.0. What is the ratio of the book value of debt to the market value of equity?

Answers

Answer:

0.23

Explanation:

Debt to Equity  Ratio = Total debt/ Total common equity

Market to book Ratio = Market price per share / Book value per share

Book debt to Market equity Ratio = Debt to Equity  Ratio / Market to book Ratio

Book debt to Market equity Ratio = 0.69 / 3

Book debt to Market equity Ratio = 0.23

Therefore, the ratio is 0.23

Inventory at the end of April, 2008: 200 unitsExpected demand during April, 2008: 50 unitsProduction expected during April, 2008: 100 unitsWhat was the inventory at the end of March 2008?

Answers

Answer:

beginning inventory= 150 units

Explanation:

Giving the following information:

Endiing inventory= 200 units

Sales= 50 units

Production= 100

To calculate the beginning inventory, we need to use the following formula:

Production= sales + ending inventory - beginning inventory

100= 50 + 200 - beginning inventory

beginning inventory= 250 - 100

beginning inventory= 150 units

Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remaining $0.35. The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this economy is .

Answers

Answer:

Marginal propensity to consume or MPC = 0.65

Multiplier or k = 2.85714 rounded off to 2.86

Explanation:

The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.

MPC is calculated as follows,

MPC = Change in consumer spending / change in income

MPC = 0.65 / 1

MPC = 0.65

To calculate the multiplier, we simply use the following formula,

Multiplier or k = 1 / (1 - MPC)

k = 1 / (1 - 0.65)

k = 2.85714 rounded off to 2.86

The marginal propensity to consume is a measure in economics that quantifies induced consumption, or the idea that private expenditure grows in tandem with disposable income.

The spending power is the amount of expendable cash spent on consumption by individuals.

The answers to the questions in the context are:

Marginal propensity to consume or MPC = 0.65

Multiplier or k = 2.85714 rounded off to 2.86

The proportion of extra discretionary income spent by the customer is defined as the level of consumption (MPC).

It's a statistic for measuring induced consumption, or how an increase in consumer spending occurs as a result of an increase in income.

 

MPC is calculated as follows,

MPC = [tex]\frac{\text{Change in consumer spending}}{\text{change in income}}[/tex]

MPC = 0.65 / 1

MPC = 0.65

To calculate the multiplier:

Multiplier or k = [tex]\frac{1}{1-MPC}[/tex]

k = [tex]\frac{1}{1-0.65}[/tex]

k = 2.85714 rounded off to 2.86

Therefore,

Marginal propensity to consume or MPC = 0.65

Multiplier or k = 2.85714 rounded off to 2.86

To know more about the calculations of the consumptions and the multiplier, refer to the link below:

https://brainly.com/question/13056771

. A particular parcel of real estate (land) is sold for $20,000,000 and was originally purchased for $10,000,000. On a taxable sale, explain a circumstance (type of investor, intent, entity, etc.) that would pay the following U.S. federal income tax results on the $10,000,000 gain (exclude the 3.8% net investment income tax and any state taxes in the calculation):

Answers

Question Completion:

Choices: a. No tax liability on the sale b. $2,000,000 of tax c. $2,960,000 of tax d. $2,100,000 of tax

Answer:

b. $2,000,000 of tax for individuals

Explanation:

Long-term capital gains tax is a tax on profits from the sale of an asset which an investor has held for more than a year. The approved long-term capital gains tax rates are 0%, 15% or 20% depending on your taxable income bracket and whether you are filing as a single or jointly as married.  But, an important point to note is that long-term capital gains tax rates are generally lower than short-term capital gains tax rates, thus encouraging investors to hold assets for a longer time.  Short-term capital gains tax rates are the rates applicable to the normal individual income tax brackets.

Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $1,200,000 with a $300,000 residual value and a 10-year life. The equipment will replace three employees who has an average total wages of $180,000 per year. In addition, the equipment will have operating and energy costs of $7,500 per year.
Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.

Answers

Answer:

Average rate of return = 11%

Explanation:

Depreciation = (Cost of equipment - Residual value) / Useful years

Depreciation = (1,200,000-300,000) / 10

Depreciation = 90,000

Increase in net annual income = 180,000 - 90,000 - 7,500

Increase in net annual income = 82,500

Average investment = (1,200,000 + 300,000) / 2 = 750,000

Average rate of return = Increase in net annual income / Average investment

Average rate of return = 82,500/750,000

Average rate of return = 0.11

Average rate of return = 11%


Your boss has asked you to hand deliver five invitations to a special luncheon he is hosting. When you receive the
invitations, they have only first and last names but no addresses. You remember that they all live side by side in an
apartment building on Central Street. The boss left the following information with his assistant, but it is all you have. Time to
problem-solve to figure out who lives where!
This much you know for sure Carly has Greg as one next-door neighbor and the Joneses as her other next-door
neighbors. Now it's it up to you to figure out who lives in the other apartments. It may be helpful for you to draw five boxes
to use as a visual guide. Furthermore, writing names on your drawing in pencil will allow you to keep track of the neighbors
as you place them in their homes.
1 The Smiths live in the westernmost apartment, Louis lives in the easternmost
2. Leon has Mia as one next-door neighbor with TJ on the other side.
3. Both Tami and TJ live east of the Williamses.
4. TJ lives next door to the Browns
5. Tom lives west of the Garcias and east of Carly
6. Kris and Tami are next-door neighbors. The Garcias also live next to Tami but on the other side.
7. Nikki lives east of TJ.

Answers

Answer:

1)Smiths

2)Nikki

3)Williams

4)Mia

5) Leon

6)TJ

7)Browns

8)Joneses

9)Carley

10)Greg

11)Tom

12)Garcias

13)Tami

14)Kris

15)Loise

Explanation:

Hughey Co. as lessee records a capital lease of machinery on January 1, 2011. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at 10% is $1,704,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Round to the nearest dollar.

a) Prepare an amortization table for 2 011 and 2012.
b) Prepare all of Hughey's journal entries for 2011.

Answers

Answer:

Both requirements are solved below

Explanation:

An amortization table can be made as follows

DATA

Lease term = 7years

annual lease payments = $350,0000

Present value of the leases payment = $1,704,000

Implicit interest rate = 10%

Requirement A Amortization table for 2011 and 2012

Date   Annual payment  Effective    decreased      Balance

                                          interest        liability                                                                                                                     $1,704,000

12/31/11      $350,000      $170,400     $179,600     $1524,400

12/31/12      $350,000     $152,440     $197,560     $1,326,840

Requirement B journal entries for 2011

January 1  

Entry

                                      DEBIT           CREDIT

Leased machinery     $1,704,000

Lease liability                                   $1,704,000

December 31

Entry

                                      DEBIT           CREDIT

Interest expense       $170,400

Lease liability             $179,600

Cash                                                  $350,000

December 31

Entry

                                                   DEBIT           CREDIT

Depreciation expense(w)         $426,000

Accumulated depreciation                            $426,000

Working

Sum of the years =  (7+6+5+4+3+2+1)    = 28

Cost = $1,704,000

Residual value = $0

Estimated life = 7years

Depreciation expense = $1,704,000 x 7/28

Depreciation expense = $426,000

Which of the following statements regarding fiscal policy are true according to the macroeconomic consensus in the United States?

a. Congress, not the Federal Reserve, should be in charge of monetary policy.
b. Expansionary monetary policies should be used to keep unemployment below its natural rate.
c. Monetary policy should focus on price stability.

Answers

Answer: Monetary policy should focus on price stability.

Explanation:

The statements regarding fiscal policy that is true according to the macroeconomic consensus in the United States is that monetary policy should focus on price stability.

The statements that Congress, not the Federal Reserve, should be in charge of monetary policy and that Expansionary monetary policies should be used to keep unemployment below its natural rate are both wrong.

If the current interest rate is 5% and your semi-annual coupon paying bond has a duration of 5.33 years, how much will the price of the bond change if the interest rate increases by 1 basis point?

Answers

Answer:

Percentage change in price = -5.33 * 0.00005

Explanation:

Percentage change in price = - modified duration * (Change in yield in BP/100)

Percentage change in price = -5.33 * ((0.01/2)/100)

Percentage change in price = -5.33 * (0.005/100)

Percentage change in price = -5.33 * 0.00005

Identify five HRM criteria or components that can be used to measure organizational effectiveness or ineffectiveness. "Grievance rate" is an example.

Answers

Answer:

They include;

1. Customer Satisfaction

2. Absenteeism

3. Legal Compliance

4. Performance

5. Training

Explanation:

The Human Resource Management criteria that are used to measure the effectiveness or ineffectiveness of an organization, are a list that gives an idea of how an organization is performing, and this list can serve as a basis of comparison with other organizations. These options include;

1. Satisfaction: If the employees are treated fairly and so, feel satisfied with the organization, then they can be said to be effective.

2. Absenteeism: When workers are always absent from work it does not present the organization as an effective one.

3. Legal Compliance: The organization must be able to comply to government rules and regulations guiding the business to be rated as effective.

4. Performance: High or low-performance which is reflected in the turnover rates would be an indication of how effective or ineffective an organization is.

5. Training: The organization should be able to provide regular standard training for its workers to be rated as effective.

All of the following are factors that may complicate capital investment analysis except a.qualitative factors. b.changes in price levels. c.the federal income tax. d.the age of the current fixed assets.

Answers

Answer:

Correct Answer:

a.qualitative factors.

Explanation:

Capital investment analysis is the process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets. For example, in a situation where a decision was taken to install new equipment, replace old equipment, and purchase or construct a new building.

Answer:

d.the age of the current fixed assets.

Explanation:

The age of current fixed assets is straight forward since it was set at start of operation based on company`s usage thus within the entity`s control.

However the other factors makes  capital investment analysis complex as they are not within the entity`s control.

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