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forsale [732]
3 years ago
9

Consider a hypothetical economy where there are no taxes and no international trade. households spend $0.80 of each additional d

ollar they earn and save the remaining $0.20. if there are no taxes and no international trade, the oversimplified multiplier for this economy is .
Business
1 answer:
KengaRu [80]3 years ago
7 0
The formula for the multiplier is 1 / (1 - MPC), whereby MPC represents the marginal propensity to consume. Applying the formula to our case, we get: M (multiplier) = 1/(1-0.8) = 1/0.2 = 5. The multiplier in this economy is therefore 5.
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Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex
Wittaler [7]

Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

Annual depreciation rate = $350,000/700,000

Depreciation rate = $0.50

Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50

= $170,000

We know, Book value of asset = Cost price - Accumulated depreciation

Book value = $400,000 - $170,000 = $230,000

Again, Loss on sale of equipment = Book value - Sales price

Loss on sale of equipment = $230,000 - $210,000

Loss on sale of equipment = $20,000

The journal entry to record the sale =

Debit Cash $210,000

Debit Accumulated Depreciation $170,000

Debit Loss on sale $20,000

Credit Equipment $400,000

7 0
3 years ago
Read 2 more answers
JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $65 million, $55 million, and $37
Kitty [74]

Answer:

a) $28 Million

b) -$24 Million

Explanation:

The first part of the question is to determine the pension liability tht should be reported in the balance sheet

To do this, we use the following formula

Projected Benefit Obligation - The Plan Assets

= $65 million - $37 Million = $28 Million

Part B) This part says to dettermine the amount JDS would report if the planned asset increase to $89 million

The formula Projected Benefit Obligation - The Plan Assets  still should be used but there is a difference as follows

$65 million - $89 Million = -$24 Million

6 0
3 years ago
Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Inc. During 2017, he was issued a company car with a fair marke
nlexa [21]

Answer:

Check the explanation

Explanation:

As per publication 15-b Of employers tax guide fringe benefits provides you how to use lease value rules and when to use , The following question is answered according to it

Employee Name : Malcolm Figueroa      

Annual Lease Method :      

1 Fair market value of vehicle 35000    

2 Annual lease value : 9250    

3 Prorated Annual lease percentage 3600 / 22000 = 16.3636%

4 Prorated Annual lease Value: Annual lease value * Prorated Annual lease percentage = $

9250 * 16.3636% = 1513.633$

5 iF FUEL PROVIDED BY EMPLOYER ENTER MILE 3600 * 5.5cents = 198$

Total fuel charges    = 198$

6 Total personal Use Taxable income 1513.633 + 198 = $1711.633

Kindly check the attached image below to see the well arranged accounting entry above.

First we will find the annual lease value from table given by using fmv of automobile i.e for 35000 its 9250

Now we will Multiple  annual lease value by % of personal driven by employee

which is calculated by 3600/22000*100= 16.3636%

9250*16.3636%= 1513.633

So this the personal usage vehicle which will be added = $1513.633

And we will add the fuel cost to this amount which is = 3600*5.5cents= $198

total personal use taxable = $1711.633

3 0
3 years ago
Read 2 more answers
A metal sphere of radius 15 cm has a net charge of 3.0 $ 10#8 C. (a) What is the electric field at the sphere’s surface? (b) If
denis-greek [22]

Answer:

E = 1.20 × 10^{4} N/C

V = 1800 V

x = 0.058 m

Explanation:

given data

radius = 15 cm

net charge = 3 × 10^{-8} C

electric potential decreased = 500 V

solution

we get here electric field at the sphere’s surface that is

electric field at the sphere’s surface E  =  \frac{q}{4\pi \epsilon _o R^2}   ............1

put here value

electric field at the sphere’s surface E  = \frac{3\times 10^{-8}\times 8.99\times 10^9}{ 0.15^2}    

E = 1.20 × 10^{4} N/C

and

potential on surface of sphere is

V =  \frac{q}{4\pi \epsilon _o R} ................2

V = \frac{3\times 10^{-8}\times 8.99\times 10^9}{ 0.15}  

V = 1800 V

and

now we get distance that is x

and we know here

ΔV = V(x) - V   ..............3

substitute here value

-500V = \frac{q}{4\pi \epsilon _o } \times (\frac{1}{R+x} - \frac{1}{R})

-500 V = {3\times 10^{-8}\times 8.99\times 10^9} \times (\frac{1}{0.15+x} - \frac{1}{0.15})

solve it we get x

x = 0.058 m

3 0
3 years ago
Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion c
CaHeK987 [17]

Answer:

Mayer Company

MAYER COMPANY

Molding Department

Production Cost Report

For the Month Ended May 31, 2013

Units to be accounted for

Work in process, May 1       8,000

Started into Production     27,000

Total units                          35,000

Equivalent Units:

Units accounted for           Units       Materials    Conversion

Transferred out                30,000      30,000         30,000

Work in process, May 31    5,000        5,000           2,000

Total equivalent units      35,000      35,000         32,000

Costs Unit costs   Materials    Conversion Costs     Total

Costs in May       $140,000       $160,000              $300,000

Equivalent units     35,000           32,000

Unit costs             $4.00             $5

Costs to be accounted for

Work in process, May 1    $60,000

Started into production $240,000

Total costs                     $300,000

Cost Reconciliation Schedule   Materials Conversion  Total cost

Costs accounted for

Transferred out                         $120,000  $150,000     $270,000

Work in process, May 31              20,000       10,000         30,000

Total costs accounted for        $140,000   $160,000    $300,000

Explanation:

a) Data and Calculations:

Beginning WIP 75% complete to conversion

Ending WIP 40% complete to conversion

Work in process, May 31    5,000

Materials =  5,000 (100% * 5,000)

Conversion 2,000 (40% * 5,000)

4 0
3 years ago
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