Price level stability necessitates intelligent management or regulation for money supply and interest rates.
Money supply alludes to how much money or cash coursing in an economy. The money supply is the aggregate sum of money present in an economy at a specific level.
The record of the absolute money supply is kept by the Central Bank of the country.
Interest rates is the sum a bank charges a borrower and is a level of the head - the sum credited. The financial cost on a credit it's regularly noted on a yearly premise known as the Annual Percentage Rate (APR).
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Answer: Esther does not recognize any gain or loss on the distribution and her remaining basis in EE is $15,000
Explanation:
Base on the scenario been described in the question, repayment of liabilities is treated as a cash distribution. Esther's share of the debt reduction is Since this amount is lower than her outside basis ($40,000) she does not recognize a gain or loss.reduces her outside basis by the $25,000, which leaves her $15,000 of outside basis in EE afterthe debt repayment.
Answer:
$1,000
Explanation:
For the computation of overhead over/under applied last year first we need to find out the applied overhead which is shown below:-
Applied overhead = Actual direct labor × Per direct labor
= 24,000 × $2
= $48,000
Over applied overhead = Applied overhead - Actual overhead
= $48,000 - $47,000
= $1,000
Therefore for computing the overhead over/under applied last year we simply applied the above formula.
Answer:
$42.5 billion
Explanation:
the expected value formula = ∑ (valueₙ x probabilityₙ)
expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)
= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion
Answer:
$635,000 and : 34%
Explanation:
Margins of safety is the difference between expected sales and the break-even point.
For Zhao, expected sales are 10,000 units
The break-even points in units = fixed cost/ contribution margin per unit
fixed costs = $429,000
Contribution margin per unit = selling price - variable costs per unit
=$187 - $122
=$65
break-even point in units = $429,000/$65
break-even point = 6600 units
Margin of safety = 10,000 - 6600 units
=3400 units
In dollars is equal to margin of safety in units x selling price
=3400 x 187
<u>=$635,000</u>
as a percent of expected sales.
=3400/10000 x 100
=0.34 x 10,000
=34%
