Answer:
- an increase in discretionary spending and, if no other changes are made, an increase in the government's deficit
- an increase in the government's debt
Explanation:
A budget deficit occurs when the federal government has more spending than it recites. That is, the government has many debts and can not raise enough money to pay these debts and maintain a good standard of living for citizens. The consequences of large budget deficits cause great damage to the country, especially for people with lower incomes. For this reason, it is necessary that in a deficit situation, the government reduced spending.
This is not the case with the government shown in the question above. Even in a budget deficit situation, the government wants to extend an interstate highway that will cost $ 35 million. The result of this will be:
- an increase in discretionary spending and, if no other changes are made, an increase in the government's deficit
- an increase in the government's debt
Discretionary expenses are those expenses for which the government has some degree of decision.
Assuming other costs stay the same or go down, production costs would <u>go down</u> because the oil/gas that you use in production is now cheaper.
Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
<h3>Amount to be reported as revenue</h3>
First step
Percentage ownership=35,000/140,000 shares ×100
Percentage ownership=25%.
Second step
Using equity method
Revenue from investment=25%× $320,000
Revenue from investment=$80,000
Therefore Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
Learn more about revenue here:brainly.com/question/24280609
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Answer:
the number of units started and completed is 65,000 units
Explanation:
The computation of the number of units started and completed is given below:
= Units completed - beginning work in process inventory units
= 75,000 units - 10,000 units
= 65,000 units
Hence, the number of units started and completed is 65,000 units
