Answer:
d. $8,000
Explanation:
Reserve requirement = 25% = 0.25
The money multiplier = 1 /Required reserve
The money multiplier = 1/0.25
The money multiplier = 4
The initial deposits = $2,000
The maximum possible expansion of deposits = Initial deposits * The money multiplier = $2,000 * 4 = $8,000. Thus, the maximum expansion of the money supply possible from the original deposit is $8,000
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
I cant see anything at all and my eyes hurt
The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.
<h3>
What is negative amortization?</h3>
A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.
Such condition of a negative amortization arises as the amount being repaid does not fully or partly cover the interest amount.
Hence, the significance of negative amortization is aforementioned.
Learn more about negative amortization here:
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<em>In a cap-and-trade system, </em><em><u>the </u></em><em><u>government</u></em><em> set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and </em><em><u>polluters</u></em><em> can buy, sell, and trade these permits with others.</em>
<em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em>
<em>I</em><em>n</em><em> </em><em>a </em><em>cap </em><em>and </em><em>trade </em><em>system</em><em>,</em><em> </em><em>the </em><em>government</em><em> </em><em>sets </em><em>an </em><em>emissions</em><em> </em><em>cap </em><em>and </em><em>issues </em><em>a </em><em>quantity</em><em> </em><em>of </em><em>emission</em><em> </em><em>allowance</em><em>s</em><em> </em><em>consistent</em><em> </em><em>with </em><em>that </em><em>cap</em><em>.</em><em> </em><em>Emitters</em><em> </em><em>must </em><em>hold </em><em>allowances</em><em> </em><em>for </em><em>every </em><em>ton </em><em>of </em><em>greenhouse</em><em> </em><em>gas </em><em>they </em><em>emit</em><em>.</em><em> </em><em>Companies</em><em> </em><em>may </em><em>b</em><em>uy </em><em>and </em><em>sell </em><em>allowances,</em><em> </em><em>and </em><em>this </em><em>market </em><em>established</em><em> </em><em>an </em><em>emissions</em><em> </em><em>price</em><em>.</em>
<em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em><em>_</em>