Answer:
D. Limited Partnership
Explanation:
Sole proprietorship is business owned , run & managed by single owner. Partnership is a business owned , run & managed by small group of people - deciding to share its profits .
Entrepreneurs in these have Unlimited Liability on personal assets, in case business assets are insufficient to settle business liabilities .
Corporation is a separate legal entity, distinct from its huge group of owners , guided by a board of directors. In case of any claim / sue case : it is against corporate entity & not the people, so they don't have any unlimited liability risk on personal assets to fulfil company's claims .
Answer:c. Both Copper Corporation and Gold Corporation.
Explanation:Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.
Generally, a small business can use either the overall cash method of accounting or an overall accrual method of accounting. ... The overall cash method of accounting is available for S corporations, partnerships that do not have a C corporation as a partner, and personal service corporations (PSCs).
Answer:
The amount recorded in the Land account is $61,200
Explanation:
The cost of acquisition/purchase of a landed asset includes all the normal, reasonable and necessary costs incurred in obtaining the land and getting it ready for use. These cost includes the price of the land, the legal fees, title fees, taxes, excavation costs etc. On the other hand, cost of improvements on the land are recorded on improvement on asset accounts, where depreciation is put in consideration when computing cost. This is separate from acquisition cost because, there is no depreciation on a land. The cost is calculated as follows:
purchase price = $ 45,000
broker's fees = $ 8,000
accrued taxes = $ 2,000
demolition = $ 2,700
grading = $ 1,500
excavation = $ 2,000
Total = $ 61,200
Answer:
annual income = $70,292.52
Explanation:
initial outlay $900,000
in order to determine the net cash flows per year we can use the present value of an ordinary annuity:
PV = annual cash flow x annuity factor
- PV = $900,000
- annuity factor, 15%, 12 years = 6.1944
annual cash flow = $900,000 / 6.1944 = $145,292.52
annual cash flow = [(revenue - operating costs - depreciation) x (1 - tax rate)] + depreciation
- revenue - operating costs - depreciation = annual income
- tax rate = 0?
- depreciation = $900,000 / 12 = $75,000
$145,292.52 = annual income + $75,000
annual income = $145,292.52 - $75,000 = $70,292.52
Answer:
If MPC is 0.8, Change in GDP = $500 million
If MPC is 0.95, Change in GDP = $2,000 million
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be
Change in GDP = change in autonomous expenditure × Multiplier
= 100 × 5 = $500 million
<em>Scenario 2, MPC of 0.95</em>
Expenditure Multiplier = 1/(1-0.95) = 20
Change in GDP= 100 × 20 = $2000 million
