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4 years ago

Price floors usually result in ___________________.

1 answer:

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When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

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Matador company purchases $1,300 of equipment from danger mouse inc. For cash the effect on the components of the basic accounti

charle [14.2K]

Danger Mouse Inc. sells $1,300 worth of equipment to Matador Company. The effect of cash on the elements of the Matador Company's fundamental accounting equation is that the total assets remain unchanged.

How much are total assets?

Current assets and non-current assets, often known as fixed assets, are divided up into total assets.
Short-term assets known as current assets are utilised to cover current liabilities.
Long-term assets known as fixed assets are employed by businesses to produce revenue and profits.
This transaction results in a $1,300 drop in the cash balance and a $1,300 rise in fixed assets, leaving the total assets unchanged.
The entry is as follows:

General Journal Debit Credit

Equipment $XX

Cash $XX

To know more about total assets visit:

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4 0

2 years ago

If a person wants to start a business but limit the amount of liability he is responsible for, a _____________ would be most app

Nikolay [14]

Answer:

If a person wants to start a business but the limit the amount of liability he is responsible, Option D, Corporation would be most appropriate.

Explanation:

In corporation or a limited liability corporation, one doesn’t need to liquidate his/her personal assets to cover the debt in case the business goes bankrupt. A corporation is a company or group of people that can act legally as a person or single entity. Because of this, the owners of the corporation have limited amount of legal liability for the corporation's business activities and debts.

In sole proprietorship, person who owns the business is responsible for his debts and has unlimited liability. Similarly, in partnership and joint venture also, person is liable for the debts. So, out of the given options, Option D is the correct answer if person wants to limit his liability.

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4 years ago

The transfer of existing mortgages between investors is the:___________

son4ous [18]

Answer:

Secondary mortgage market

Explanation:

The secondary mortgage market is a market in which the loan related to the home and the services rights are purchased and sold between the lenders and the investors

here the transfer is to be done with respect to the mortgages that are previously existed between the investors

Therefore in the given case, it is the situation of the secondary mortgage market and hence, the same is to be considered

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4 years ago

Kaspar and Ludger, two unrelated calendar year corporations, have the following transactions for 2019: Kaspar Corporation Ludger

Karolina [17]

Answer:

The dividends received deduction <u>for Kaspar Corporation is $70,000</u>, while the dividends received deduction f<u>or Ludger Corporation is $230,000</u>.

Explanation:

Note that the data in the question are merged together but they are first sorted in the attached excel file before answering the question as follows:

The dividends received deduction refers a federal tax deduction that are enjoyed in the U.S. by some corporations that receives dividends from related entities.

Based on the general rule for dividends received deduction, if the ownership by the company receiving the dividend in the company paying the dividend is less than 20%, the dividends received deduction is the 70% of the dividend received.

Since both Kaspar and Ludger have just 15% ownership which is less than 20% in domestic corporation from which they received dividends, their dividends received deduction can therefore be determined using the following formula:

Dividend received deduction = Dividend received * 70% .............. (1)

Using equation (1), we have:

Kaspar's dividend received deduction = $100,000 * 70% = $70,000

Ludger's dividend received deduction = $230,000 * 70% = $161,000

Therefore, the dividends received deduction for Kaspar Corporation is $70,000, while the dividends received deduction for Ludger Corporation is $230,000.

Download xlsx

8 0

3 years ago

Price leadership is legal in the United States, whereas price-fixing is not. This is because price leadership is not an agreemen

OverLord2011 [107]

Answer:

This is because price leadership is not an agreement, whereas price-fixing is.

Explanation:

Price fixing is a type of collusion (and yes, collusion is illegal). Price fixing is an illegal business practice where competing firms agree upon increasing, decreasing or maintaining the price of certain goods or services. In the US, competing firms must establish their prices by themselves without consulting or agreeing with their competition.

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3 years ago