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scoundrel [369]
3 years ago
11

Suppose you have $10,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu

ture use. If the required reserve ratio is 10%, what will be the maximum impact on money supply today as a result of your action?
Business
1 answer:
trapecia [35]3 years ago
8 0

Answer:

The Money supply will decrease by $4,500

Explanation:

What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.

Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.

Hence, you can easily calculate the effect by using the simple money multiplier.

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Jada converted her personal residence to rental property in 2018. She purchased the property in 2014 for $110,000, of which $10,
creativ13 [48]

Answer:

a)Jada's basis for depreciation in the property is NIL.

b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Explanation:

Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).

According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.

IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.

Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.

2) Personal property with no intrinsic value:

Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.

5 0
3 years ago
Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is
Naddika [18.5K]

The short-run average total cost of Ike's Bikes of producing 100 bikes is $360.

<h3>What is the short-run average total cost ?</h3>

The short-run is a production period where some of the factors used in the production process are fixed and others are variable. The  short-run average total cost is the total cost divided by total output. Total cost is the sum of fixed cost and variable cost.

Please find attached the complete question. To learn more about average cost, please check: brainly.com/question/26959638

6 0
2 years ago
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders
ollegr [7]

Answer:

See below

Explanation:

1. Complete accrual basis income statement

Sales

($28,000 + $3,000)

$31,000

Less cost of goods sold

($13,000 + $2,000 - $3,000)

-$12,000

Operating expenses

($9,000 - $2,000)

-$7,000

Depreciation expenses

-$4,000

Income tax

($4,000 + $1,000)

-$5,000

Amortization expense

-$1,000

Gain on sale of equipment

$2,000

Net income

$4,000

2. Cash flow statement (Indirect)

Net income

$4,000

Adjustments;

Add depreciation

$4,000

Add write off intangibles

$1,000

Less gain on sale of equipment

-$2,000

Less increase in accounts receivables

-$3,000

Less increase in inventory

-$3,000

Add increase in accounts payable

$2,000

Less decrease in accrued payable

-$2,000

Add increase in deferred income tax payable

$1,000

Net cash from operations $2,000

7 0
3 years ago
Question 1 of 10
Mumz [18]
A……………………………….,….. AAA
4 0
3 years ago
Read 2 more answers
indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the sto
vesna_86 [32]

Answer:

a. Team performance curve

Explanation:

A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.

This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.

Team performance curve indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members.

8 0
3 years ago
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