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3 years ago

Question 5 of 20

Business

1 answer:

umka21 [38]3 years ago

7 0

When you invest your money, it is likely that in future your purchasing power will A. go up and down.

<h3>What will happen to your purchasing power?</h3>

If you invest your money today, there is a chance that you will get back more money than you deposited, or less than you deposited.

This means that you will either have more money or less money to purchase goods and services. In other words, your purchasing power will go up and down.

Find out more on purchasing power at brainly.com/question/2286004.

You might be interested in

A two-tiered system of health care provision where the state would provide a decent minimum (basic and catastrophic care) based

zavuch27 [327]

Answer:

utilitarian, Libertarian

Explanation:

Utilitarianism is referred to that ethics that are more concerned with the morality of actions. This theory tells how something good can be produced for others.

Utilitarians are those people whole believe in utilitarianism. utilitarianism defined good is something that diminished the pain of sorrow and extant of pleasure

The motive of Libertarian toward health care is to decrease the charges of health care and enhance the facilities and quality of health care. The Libertarian theory involves liberty from all sources that harm the society whether it is liberty from the government in health care just to provide the best facilities in the health sector or any the sector.

5 0

4 years ago

On December 31, 2020, American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing f

Setler79 [48]

a) Since the debt modification is <u>substantial</u>, more than 10%, the gain to be recorded by Barkley Company, $600,000, will be equal to the loss recorded by American Bank under the debt restructuring.

b) Barkley Company can record a Profit under the term modification above because it is a <u>substantial</u> debt modification, with a gain of $600,000, which is 20% of the original debt.

c. The preparation of the Interest Payment Schedule is as follows:

Period PV PMT Interest FV

1 $2,400,000.00 $621,565.76 $34,262.40 $1,812,696.64

2 $1,812,696.64 $621,565.76 $25,878.06 $1,217,008.93

3 $1,217,008.93 $621,565.76 $17,374.02 $612,817.19

4 $612,817.19 $621,565.76 $8,748.58 $0.00

<h3>What is a debt modification?</h3>

A debt modification is the restructuring of debt to enable the debtor experiencing financial difficulties to regain the financial muscle to settle the restructured debt.

Debt modification can affect the following debt terms:

The amounts
Timing of interest payments
Timing of principal repayment
Rate of interest.

<h3>Data and Calculations:</h3>

12% Note Payable = $3,000,000

Revised 10% Note Payable = $2,400,000

Gain on Debt Modification = $600,00

Extended Maturity Period = 4 years

Learn more about debt modifications at brainly.com/question/1490221

5 0

2 years ago

A company purchased a weaving machine for $206,520. The machine has a usedul life of 8 years and a residual value of $11,000. It

Alex777 [14]

Answer:

The amount of depreciation expense that should be recorded for the second year is $28,600

Explanation:

The computation of the depreciation per units or bolts under the units-of-production method is shown below:

= (Original cost - residual value) ÷ (estimated production bolts)

= ($206,520 - $11,000) ÷ (752,000 bolts)

= ($195,520) ÷ (752,000 bolts)

= $0.26 per bolt

Now for the second year, it would be

= Production units in second year × depreciation per bolts

= 110,000 units × 0.26

= $28,600

4 0

3 years ago

On April 1, a company paid the $3,750 premium on a three-year insurance policy with benefits beginning on that date. What amount

Katena32 [7]

Answer:

$937.50

Explanation:

The Income Statement uses the accruals accounting concept when recording expenses. This concepts state that expenses must the recognized in the period in which they occur. This also applies to revenue or income.

What this means is that for this three-year insurance policy, we will be recognizing as an expense, that portion which has been incurred from the date of purchase to the end of the first financial period that is 9 months.

Calculation of the amount of the insurance expense will be reported on the annual income statement :

Insurance Expense = $3,750 × 9/36

= $937.50

I have converted 3 years (36 months) to months to deal with months only so as to make it easy for apportionment.

7 0

3 years ago

A study finds that the noise from rock concerts is harmful; hence, the government imposes a $30 tax on the sale of every unit. T

Vladimir79 [104]

Answer:

The correct answer is: decrease; $195; $190; $165.

Explanation:

A study found the noise from rock concerts to be harmful.

To correct the externality created by the concerts, the government imposes a tax $30 on sale of each unit.

The price of tickets was initially $190.

After the imposition of the corrective tax, the price increased to $195.

This increase in price will cause the demand for tickets to decrease. As a result, the number of concert tickets sold will decrease.

The socially optimal price of the tickets is $195, as this price eliminates externalities.

The private market price is the price which was creating externalities, in this case, it is $190.

We can find the price received by the firms by deducting the tax amount from the new price.

The price received by the firms is

= $195 - $30

= $165

3 0

3 years ago