Answer:
B Marginal Revenue
Revenue is money earned from the production of goods and services.
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Answer:</u></h3>
More sensitive consumption, investment, and net exports are to changes in interest rates
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Explanation:</u></h3>
If the government pursues expansionary fiscal policy when the economy is not depressed, this can lead to a reduction in private investment in the long run. This is because expansionary fiscal policy leads to an increase in real GDP, which in turn increases money demand and the equilibrium interest rate. However, the increase in the interest rate also lead to a decrease in private consumption and investment.
Answer:
the cost to be assigned to the building is $288,000
Explanation:
The Costs of Land, Building and Equipment have to be determined separately due to the fact that their usage is different and hence depreciation charges are different.
The Appraisal value is used to apportion the cost of $450,000 to the Land, Building and Equipment as follows :
PPE Item Appraised Value
Land $100,000
Building $320,000
Equipment $80,000
Total $500,000
Apportionment of Cost to Building :
Building = $320,000/ $500,000× $450,000
= $288,000
Answer:
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Explanation:
Answer and Explanation:
The Journal entry is shown below:-
Bond interest expense Dr, $18,610
To Cash $18360
To Discount on bonds $250
(Being first interest payment is recorded)
For recording the first interest payment we simply debited the bond interest expenses as it increased the expenses and we credited cash and discount on bonds as it reduced the assets and the discount should be credited
Working Note
Total discount on bonds issued = Sold bonds - Received proceeds
= $408,000 - $403,000
= $5,000
Amortization of Semi Annual Discount = Total discount on bonds issued ÷ Number of periods
= $5,000 ÷ 20
= $250
Cash interest paid = Sold bonds × Interest rate × From Jan to June ÷ Total number of months in a year
= $408,000 × 9% × 6 ÷ 12
= $18,360
Total Interest expense = Cash interest paid + Amortization of Semi Annual Discount
= $18,360 + $250
= $18,610
