Answer and Explanation:
a. The computation is shown below;
As we know that
Y/G = 1 ÷ (1-MPC)
Here
Y = $300 billion,
MPC = 0.75
So,
300 ÷ G = 1 ÷ 0.25
G = $75
So the government should rise the spending by $75 in order to close out the recessionary gap
So, the government should increase the spending by $30 to close the recessionary gap.
Answer and Explanation:
The preparation of the operating activities section is presented below
Cash Flows from operating activities
Net Income $88,000
Adjustment made for non cash items:
Depreciation Expense $19,000
Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)
Less: Increase in Inventory $(5000) ($40,000 - $35,000)
Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)
Net cash flows from operating activities $109,000
Answer and Explanation:
The journal entry is shown below:
Delivery expenses Dr $56
Merchandise inventory Dr $179
Miscellaneous expenses $25
To Cash $260
(Being the reimbursement of the account is recorded)
For recording this we debited all expenses and credited the cash as it increased the expenses and decreased the assets
Answer:
Correct option is (D)
Explanation:
Employees, employers and self employed are supposed to contribute to fund social security and medicare.
Contribution made by each party comes under different categories. Employees contribute to social security and medicare in the the form of FICA taxes which could be withheld by the employers. Employees pay 50 percent and the remaining 50 percent is paid by the employer.
Self employed contribute in the form of self employed taxes.
Answer:
Appropriate patent amortization expense = $10 million
Explanation:
As per the data given in the question,
Annual amortization expense = Cost ÷ Time
= $36 ÷ 9
= $4 million
Year 2018 Amortization Expense 4 Years = $4 million × 4
= $16 million
Unamortized cost = $36 million - $16 million
= $20 million
Year 2018 Amortization expense 4 years = $20 million ÷ 2
= $10 million
