If the MPC is 0.80 and disposable income increases from 32,000 billion to $37,000 billion, then consumption will increase by: B. $29,600 billion.
<h3>Increase in consumption</h3>
Using this formula=Increase in disposable income×MPC
Where:
Increase in disposable income=$37,000
MPC=0.80
Let plug in the formula
Increase in disposable income=$37,000 billion×0.80
Increase in disposable income=$37,000 billion×0.80
Increase in disposable income=$29,600 billion
Therefore consumption will increase by: B. $29,600 billion.
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Answer:
(A) Half-year and (D) Half-year
Explanation:
MACRS stands for Modified Accelerated Cost Recovery System and is the most commonly-used tax depreciation method .Without getting into too much detail, MACRS is accelerated depreciation that allows for a larger deduction while the asset is still new. By comparison, straight-line depreciation gives you the same deduction year after year over the asset's useful life. MACRS cannot be used for intangible property, nor can it be used to depreciate. MACRS convention determines the number of months for which you can claim depreciation during a partial year, either when you first placed the asset in service or when you disposed of it. The mid-month convention only applies to residential rental property, nonresidential real property, and railroad grading or tunnel bore. It simply means that you get a half month's worth of depreciation no matter when that asset was placed into (or taken from) service during that month, whether that was at the beginning, middle, or end of the month. The half-year convention works the same way but instead of the month it goes by the year. In other words, you'll get 6 months' depreciation if the asset was placed into service or disposed of during the year, no matter if it was in January or December.
Answer:
$5,000
Explanation:
Calculation to determine what amount should Martin report as investment income from its ownership of Foster's shares
Using this formula
Amount to be reported as investment income=Net income*Percentage of outstanding shares purchased
Let plug in the formula
Amount to be reported as investment income=$25,000 x 20%
Amount to be reported as investment income= $5,000
Therefore The amount that Martin should report as investment income from its ownership of Foster's shares is $5,000
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