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MArishka [77]
3 years ago
6

James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to

rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
Business
1 answer:
AVprozaik [17]3 years ago
3 0

Answer:

$22,000

Explanation:

Given that

1st house rented = 10,000

2nd house estimated rent = 12,000

Therefore,

The two houses would contribute

= 10,000 + 12000

= $22,000

Note: Rent is considered as consumption and as a result, rent is added into the GDP. Also, in GDP estimation, imputed rent which is the amount a house owner is willing to rent a house away for if he decides to is calculated as part of the GDP.

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Barnes Corporation purchased 75 percent of Nobles’ common stock for $262,500, which was acquired at book value. The fair value
Wittaler [7]

Solution:

Barnes Corporation purchased 75 percent of Nobles’ common stock

During the year, Nobles reports net income of $40,000.

Hence, 75% of net income of Nobbles is attributable to Barnes Corporation.

Barnes reports for income from subsidiary prior to consolidation

                                                          = 40,000 x 75%

                                                           = $30,000

3 0
3 years ago
Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $6,500 of cash sales that are
Mademuasel [1]

Answer:

Journal Entry

General Ledger                   Dr.          Cr.

Cash                                 $7,085

Sales Tax Payable                           $585

Sales                                                 $6,500

Explanation:

Sales tax is the amount of tax collected by the business on the taxable sales from customers on behalf of government and pay it to government after that. Sales tax will be included in the cash received from the customer and recorded as the payable for the business.

Sales Value = $6,500

Sales Tax = 9%

Sales inclusive of Sales tax = $6,500 x 109% = $6,500 x 1.09 = $7,085

8 0
3 years ago
A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cash requirement of $340,
adoni [48]

Answer:

$26,700 excess

Explanation:

The amount of deficiency or excess can be determined only when the ending cash balance is known. The ending cash balance is the addition of the net movement in cash to the opening cash balance.

The net movement is the difference between the total receipts and the total payments or disbursement.

Total receipts for January

= $1,061,200

Total payments

= $984,500

Net movement = $1,061,200   - $984,500  

= $76,700

Ending balance = $290,000 + $76,700

= $366,700

If the minimum cash requirement is $340,000

The amount of the (deficiency)/excess cash (after considering the minimum cash balance required) for January

= $366,700  - $340,000

= $26,700

3 0
3 years ago
Identify which control activity is violated in each of the following situations, and explain how the situation creates an opport
Inessa05 [86]

Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?

2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.

⇒ segregation of duties

One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.

3. Several clerks at Great Foods use the same cash register drawer

⇒ establishment of responsibility

If everyone is allowed to collect money, no one can be responsible for any loss.

6 0
3 years ago
A company receives a 10%, 120-day note for $1, 500. The total interest due on the maturity date is:______.a) $50,00. b) $150,00.
Leto [7]

Answer:a) --A -$50.00

Explanation:

Using days of year = 360 days

Interest due = Principal  x rate  x period

           = $1500 x 10% x 120/360

   = $50

The total interest due on the maturity date is:__$50.00___

6 0
3 years ago
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