Answer:
$13.5 million
Explanation:
Fractional Banking System- This is banking system where banks are required by the central banking authority to keep a certain percentage of their total deposit as the minimum reserve which they cannot lend out.
The idea behind this requirement is to help manage liquidity risk- a situation where a bank does not have enough cash to meet its deposit customers demand.
Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.
Therefore the required reserve for this bank = 10% ×$15 million= $1.5 million
Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.
It is calculated as = Total deposit - Required reserve
So we apply this to our question
Excess reserve = $15 million - (10% × $15 million)
= $15 million - $1.5 million
= $13.5 million
Answer:
The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
Explanation:
The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.
Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
Answer:
$80,000
Explanation:
From the information given:
2020 = $320000
= i.e. 2020 = $570000
= i.e. 2019 = $530000
Change = $570000 - $530000 = $40,000
= $2,500,000
= $2,300,000
Change = $2,500,000 - $2,300,000 = $ 200000
∴
= $320000 - $40,000 - $ 200000
= $80,000
Answer:
Account Receivables 85.446 debit
Sales Revenues 85.446 credit
Explanation:
It should consider the rebate of 6% will be achieved considering the past experience
Also 28,000 units per years / 4 quarter per year = 7,00. untis per year
this quarter sales are also sufficient groudn that the rebate will be achieved.
90,900 x (1 - 0.06) = 85.446 Sales Revenue
Answer:
None of above options are correct. 7.8%
.
Explanation:
Rf = 5.5% - 1.5% = 4%
Rhri = 4% + 1.8*(10.5% - 4%) = 15.7%
Rlri = 4% + 0.6*(10.5% - 4%) = 7.9%
Difference = 15.7% - 7.9% = 7.8%
The difference (in percentage points) in the required returns for HRI and LRI is 7.8%
