Answer:
B. Paying city inspection fees for new equipment
Explanation:
Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.
City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.
Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.
Answer: $5,150
Explanation:using the information given above,
For every $1 contributed by the employee, employer adds 50cent.
Employer contribution ends after employee contributes $2500 to the 401(k) plan.
Last year:
Ian's weekly contribution = $75
Number of weeks in a year = 52
Ian's total contribution ($75 × 52) = $3,900
Ian's Employer's total contribution:
$0.5 × $2500 = $1,250
Therefore total contribution last year :
$3900 + $1250 = $5,150
Answer: Increase by $250
Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.
As, there is an increase in investment in the given case so it will result in increase in income for the economy.
We can compute it as :-
= $250
Therefore, the expenditure would increase by $250
I believe the answer is B. False
