Answer:
Answered on other one sorry i wasnt in time im just now seeing it
Explanation:
Answer:
The correct answer is "$8630".
Explanation:
Given:
Residence purchased,
= $400,000
Residence sold,
= $460,000
Alan qualifies,
=
=
= ($)
hence,
The gain will be:
=
= ($)
Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
If stock prices go up and people feel richer, aggregate demand will increase.
<h3>What is the wealth effect?</h3>
The wealth effect is an economic theory which postulates that consumer spending increases when consumers perceive that their is an increase in the value of their assets(wealth). Consumer spending increases even if there is no increase in income.
So when the stock prices increases, aggregate demnand would increase.
To learn more about the wealth effect, please check: brainly.com/question/26960365