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solong [7]
3 years ago
8

If Congress ends an investment tax credit that used to subsidize domestic investment, how would this affect the market for loana

ble funds in an open economy context?
Business
1 answer:
marin [14]3 years ago
3 0

Answer: Demand will fall, Interest rates will fall

Explanation:

The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.

If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.

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Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio (in ratio form: Lopez, 7/11; Cruz, 3/11; and
Debora [2.8K]

Answer:

31 Dec

Dr Perez capital 1300

Cr Cash 1300

31 Dec

Dr Perez Capital 1300

Dr Lopez Capital 315

Dr Cruz Capital 135

Cr Cash 1750

31 Dec

Dr Perez Capital 1300

Dr Lopez Capital 385

Dr Cruz Capital 165

Cr Cash 750

Explanation:

31 Dec

Dr Perez capital 1300

Cr Cash 1300

31 Dec

Dr Perez Capital 1300

Dr Lopez Capital (1750-1300/10×7)315

Dr Cruz Capital (1750-1300/10×3) 135

Cr Cash 1750

31 Dec

Dr Perez Capital 1300

Dr Lopez Capital (1300-750/10×7)385

Dr Cruz Capital (1300-750/10×3) 165

Cr Cash 750

3 0
3 years ago
If the liabilities of a company increased by $55,000 during a month and the stockholders' equity decreased by $21,000 during tha
vodka [1.7K]

Answer:

The assets should have increased by 34,000 during the same period.

Explanation:

Considering the accounting equation as follows:

Assets = Liabilities + Equity

and given the information that:

liabilities + 55,000

equity       - 21,000

net change in the right side:   34,000

assets = +55,000 - 21,000 \\assets = +34,000

The assets should have increased by 34,000 during the same period.

4 0
3 years ago
A project to put on a major international sporting competition has the following major deliverables: Sports Venues, Athlete Acco
11Alexandr11 [23.1K]

Answer  & Explanation:

Deliverable I choose is Event.

Answer is explained and draw in attached document.

Hope you like it. :)

Download docx
7 0
3 years ago
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $130. Limit Buy
Alenkinab [10]

Answer:

a. If a market buy order for 150 shares comes in, it will be filled at

= $128.65500 per share ($19,298.25 in total).

Explanation:

a) Data and Calculations:

                     Limit Buy Orders   Limit Sell Orders

Price Shares    $129.75400            $129.80150

Price Shares      129.70700              129.85150

Price Shares      129.65400            129.90300

Price Shares      129.60200            129.95150

Price Shares      128.65500            130.00000

The total purchase price for 150 shares = $19,298.25 ($128.65500 * 150)

b) An investor's Limit Buy Orders give the limit above which the shares cannot be exchanged for cash.  But below and at the limit amount, the shares can be bought in exchange for cash.  The investor's Limit Sell Orders give the limit below which the shares should not be sold in exchange for cash.  In other words, the shares can be sold at a price above the limit.

8 0
2 years ago
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was c
deff fn [24]

Answer:

$291,000

Explanation:

First, we need to calculate the weighted average expenditure. the Weighted average expenditure is calculated and attached with the answer in PDF format please find it.

Now calculate the Average interest rate on General debt

Average interest rate on General debt = [ ( $7,000,000 x 14% ) + ( $3,000,000 x 9% ) ] / ( $7,000,000 + $3,000,000 ) = [ $980,000 + $270,000 ] / $10,000,000 = $1,250,000 / $10,000,000 = 0.125 = 12.5%

Now the specific loan of $2,350,000 is utilised and the remianing value of expenditure is $636,000 ($2,986,000 - $2,350,000) fromgeneral debt is utilized for the costruction purpose. The interest on both loan should be capitalised.

Interest capitalized = ( $2,350,000 x 9% ) + ( $636,000 x 12.5% ) = $211,500 + $79,500 = $291,000

Download pdf
8 0
3 years ago
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