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3 years ago

Which statement describes an opportunity cost that could result from the government regulating businesses?

1 answer:

5 0

The best answer is C) Government regulations can lead to an increase in production costs.

One opportunity cost of government regulation is the fact that government regulation often causes companies to change their production in ways that make it less efficient and more costly, although the idea that the benefits to society outweigh these costs.

A) is not negative and not necessarily an effect of regulation
B) is not negative

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Homer deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Bart also deposited $3,00

Art [367]

Answer:

The answer is "Option a".

Explanation:

In this question, each year Barb pays back the interest received. It will add depth to its principle during the first year. In this, the actual case, the interest for $3000 at 5% for the first year = $150, would be added to $3 000, and $31,50. In the second year, Barb should gain a 5% interest on $3150. Throughout the case of Andy, the second principle will be $3000 like it was at the end of the first year. Thus, Barb's second year is going to have more interest.

In choice b, It is wrong because Andy wants to withdraw its interest, this won't get irritated. He would also receive less interest per year than Barb.
In choice c, Its interest would not be the same for both in the first year.
In choice d, It is wrong because Andy wants to withdraw interest each year, no compound interest will arise.
In choice e, No, not that. Andy won't earn the interest compounded so, the Barb will receive the interest multiplied. Therefore, for the five-year duration, Barb can earn more interest.

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3 years ago

Equity method journal entries (price greater than book value) An investor purchases a 25% interest in an investee company, and t

Crazy boy [7]

Answer:

See answer an explanation below.

Explanation:

The journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Equity investment 145,000

Cash 145,000

(To record purchase of investment.)

Cash 25,000

Income from equity investment (w.1) 25,000

(To record equity income.)

Cash 20,000

Equity investment 20,000

(To record receipt of cash dividend.)

Income from equity investment 2,000

Equity investment (w.2) 2,000

(To record patent amortization expense.)

Cash 180,000

Gain on sale of equity invest. (w.4) 32,000

Equity investment (w.3) 148,000

(To record sale of investment.)

Workings

w.1: Income from equity investment = Investee's net income * Percentage of interest = $100,000 * 25% = $25,000

w.2: Equity investment = (Patent value / Remaining useful life) * Percentage of interest = ($80,000 / 10) * 25% = $8,000 * 25% = $2,000

w.3: Equity investment = $145,000 + $25,000 - $20,000 - $2,000 = $148,000

w.4: Gain on sale of equity investment = Sales proceed - w.3 = $180,000 - $148,000 = $32,000

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3 years ago

One year after graduating from college, sam earned $42,000. each year, he earned $4000 more. what function, written in sequence

Shalnov [3]

Sam has $42,000 one year after graduating. So when he graduates from college, he would have $38,000.

The answer would be:
an=4,000n+38,000

Hope this helps!

6 0

3 years ago

The phase of the business cycle that includes a period of decline in GDP and

Anarel [89]

Answer:

Contraction:

Explanation:

The contraction period is the time between the peak (highest growth rate) and the trough ( the lowest growth rate). At contraction, the GDP value declines from its peak to the lowest or negative growth rate. Contraction means a shrink in economic activities.

During contraction, the unemployment rate rising as employers lay-off workers due to reduced demand. Incomes and profits decline, and the GDP value decreases to low or negative values. The contraction period starts with a recession, which is a decline in GDP value for two consecutive quarters.

4 0

3 years ago

Read 2 more answers

Paula inherits a home on July 1, 2019 that had a basis in the hands of the decedent at death of $290,000 and a fair market value

Airida [17]

Answer:

her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

Explanation:

Recognized gain on sale of old house

= ($600,000 - $125000) - $30,000 - $2000

= $443,000

Paula's recognized gain = $443,000 - $250,000

= $193,000

Her basis in the inherited home = $500,000 + $100,000

= $600,000

Therefore, her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

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3 years ago