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Kryger [21]
4 years ago
6

Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and

one that has a falling stock of capital. To answer this question, evaluate the following statement: "In 1933 net private domestic investment was minus $6 billion. This means that in that particular year the economy produced no capital goods at all." This statement is correct, because negative net investment means the economy produced no new capital goods in that year. incorrect, because gross investment must have exceeded depreciation. incorrect, because negative net investment does not mean the economy produced no new capital goods in that year. correct, because gross investment must have exceeded depreciation.
Business
1 answer:
Vlada [557]4 years ago
5 0

Answer & Explanation:

because negative net investment means the economy produced no new capital goods in that year.

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A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in
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Answer:

The Journal entries are as follows:

(1)

Cash A/c                                        Dr. $484,087

Discount on Bonds Payable A/c  Dr. $15913

To  Bonds Payable (a liability account)                    $500,000

(To record the first semiannual interest payment )

Workings:

Discount on bonds = 500,000 - 484,087

                                = 15,913

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Bonds payable A/c  Dr. $200,000

To Cash                                      200,000

(To record the amortization of any bond discount)

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