Answer: Unit of account; Store of value; Medium of exchange.
Explanation:
Sam can easily know that the price of the computer system is more than the price of the vacation. This is a Unit of Account.
Unit of account is measuring of the value of a product against another in terms of a specific currency.
Sam has $1,537 in his checking account. This is a Store of value.
Store of value means an asset or money can be saved and retrieved at a later time, for future use.
Sam writes a check for $1,299 is a medium of exchange.
Medium of exchange is used to facilitate trade between parties. He exchanged money for the computer.
The information that is being provided to the viewing public by the firm's income statement is a document reporting the cash inflows and outflows of the firm from activities that include operation, finance and investment for a certain period of time.
Answer:
Grady's gain = $6,000
Grady's stock basis = $18,000
Explanation:
This transaction does not qualify as a Section 351 (a) transfer of property in exchanged for a corporation's stock, therefore Grady must recognize a gain.
Gain = fair market value - basis = $18,000 - $12,000 = $6,000
Grady's basis on Eadie Corp. stock is $18,000
In order to qualify as a Section 351 (a) transfer and not recognize any gain or loss, the transfer must result in an immediate control over the corporation and that doesn't happen here. Control over a corporation as defined by Section 368(c) represents at least 80% of all voting power and at least 80% of all common stock. In this case the transfer resulted in a 60% ownership, it was 20% short.
Answer:
The answer is: A) decrease by $50 billion.
Explanation:
An economic multiplier is an economic factor that when changed, causes changes in related economic variables. It amplifies or decreases the base value of economic variables.
In this case the economy's multiplier is two, so any change in a component of the GDP will cause twice the effect on the total GDP.
A $25 billion decrease in government x 2 = $50 billion decrease in GDP.
Answer:
Company by informing employees about termination is creating constructive obligation. Company should therefore provide for restructuring costs calculated as PV of estimated termination bonus which is based on number of employees would accept the offers. The provision for expenses should be recognized on December 1 of year 1
Journal entry to record provision for restructuring costs
Date General Journal Debit Credit
01/Dec/Year 1 Restructuring expenses $1,000,000
Provision for termination of benefits $1,000,000
(To record provision for restructuring costs)