Answer:
$550,000
Explanation:
The computation of the cost of the land is shown below:
= Cash paid + note payable amount + legal fees incurred + sales commission charged + surveying fees + appraisal fee
= $100,000 + $400,000 + $19,000 + $25,000 + $1,000 + $5,000
= $550,000
For computing the cost of the land we added all the cost given in the question as it is related to the land
Answer:
The government will need to reduce spending by $60 billion
Explanation:
Expansionary gap is defined as a situation where the total output of an economy exceeds its potential output. That is the economy is performing above its long term potential as measured by GDP.
When this occurs the government will need to reduce spending to match output with economic needs.
Marginal propensity to consume is the proportion of an individual's income that is reserved for consumption.
In this case it is 4/5. This means individuals are willing to spend 4/5 of their income on consumption
The amount needed by the economy to meet consumption is:
Amount consumed= (4/5) * 300 billion
Amount consumed= $240 billion
Therefore
Excess cash= 300 billion - 240 billion = $60 billion
The government will need to reduce spending by $60 billion
Answer:
crowding out new entrants
Explanation:
Based on the information provided it can be said that in this scenario the company is trying to create a barrier to entry by crowding out new entrants. This is a technique in which a company introduces various variations of a product into the market so that consumers are more likely to buy one of their products instead of another company's similar product.
Answer:
$249,900
Explanation:
The dividend in arrears on December 31, 2020 is shown below:
= Number of preferred shares × par value × dividend rate × number of years
= 11,900 shares × $100 × 7% × 3 years
= $249,900
The 3 years is taken from December 31, 2017 to December 31, 2020
Moreover, it is not reflected on the liability side but is should be disclosed on the owners equity notes section
