Answer:
amount $524,000 represent the Depreciable basis
Explanation:
given data
paid = $517,000
building = $417,000
renovations cost = $107,000
amount = $524,000
to find out
What does the amount $524,000 represent
solution
here amount $524,000 represent the Depreciable basis
because Depreciable basis is the acquisition cost of investment + renovations .........................1
Depreciable basis amount = $417,000 + $107,000 = $524,000
so here is the investment is depreciable basis
so that we can say that amount $524,000 represent the Depreciable basis
Explanation:
The journal entry for issuance of the stock for acquiring the land is shown below:
Land A/c Dr $82,600 (5,900 shares × $14 per share)
To Common stock A/c $64900 (5,900 shares × $11 per share)
To Additional paid-in capital in excess of par - Common stock A/c $17,700 (5,900 shares × $3 per share)
(Being the issuance of the stock for acquiring the land is recorded)
Answer:
The marginal propensity to consume is 0.7.
Explanation:
The marginal propensity to consume (MPC) is a measure to determine the increase in consumer spending as a result of increase in disposable income. The marginal propensity to consume can be calculated by dividing the change in consumer spending by the change in disposable income.
MPC = change in consumption / change in disposable income
Thus, MPC = 14 / 20 = 0.7 or 70%
