A deduction is money taken out of the paycheck for

Suppose the population of country ABC rises from 40 million to 44 million. If the country's Real GDP rises from $825 billion to

marshall27 [118]

Answer:

Option (C) is correct.

Explanation:

Given that,

Population rises from 40 million to 44 million

Country's Real GDP rises from $825 billion to $890 billion during this same period.

Therefore,

This country experiencing a absolute economic growth because of the rise in real GDP.

Initial per capita growth:

= Initial Real GDP ÷ Initial Population

= $825 ÷ 40 million

= $20.625

New per capita growth:

= Increased Real GDP ÷ New Population

= $890 ÷ 44 million

= $20.227

Above calculations clearly shows that there is a decline in the per capita growth.

Hence, there is an absolute economic growth but not per-capita real.

8 0

2 years ago

Please help

vitfil [10]

A analytical and b interpersonal

6 0

3 years ago

Read 2 more answers

(Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January

Artist 52 [7]

<u>Solution and Explanation:</u>

Calculation of Minimum lease annual payments from (MLP)

Year MLP from lessor Present value Present valur of

point of view factor 8% cash flows

1 $4,703 $1 /(1.08)=0925$ $4,350.28

2 $4,703 $1 /(1.08)^{\wedge} 2=0.857$ $4,030.47

3 $4,703 $1 /(1.08)^{\wedge} 3=0.793$ $3,729.48

4 $4,703 $1 /(1.08)^{\wedge} 4=0.735$ $3,456.71

5 $4,703 $1 /(1.08)^{\wedge} 5=0.680$ $3,198.04

Total of Minimum

lease Payments $23,515 $ 18,764.97

Add

Unguaranteed

residual value(ugrv) 4000 $1 /(1.08)^{\wedge 5}=0.680$ $2,720.00

Asset to be recorded

in the books of lessor

(sum of mlp +ugrv) $27,515 $ 21,484.97

Here

Gross Investment=$27515

Lease receivable recorded in in the books of lessor(Phelps)(Mimum lease payments + Unguaranteed residual )value = $21484 $21,484

Walsh (lessee) shoiuld be recorded the amount of present value of minimum lease payments + Guaranteed Residual value=$18764.97 as asset and liabilty

b) In the books of phelps (lessor)

2017.01.01 Lease Recievble from walsh ….Dr $21,484

to Asset $21,484

(Being Lease receivable recorded )

In the books of Walsh (lessee)

2017.01.01 Asset ac ……………Dr $18,764

to Lease Liabilty(Lessor) $18,764

(Being the asset and liabilty recorded )

2017.12.31 Depreciation ……Dr 3752

to Asset 3752

(Beint Depreciation recorded charged during the year recorded 18764/5 provided for 5 years)

Here annual payment started from the at the beginning of year i.e annual lease payments start from 01.01.2018.

c) If expected residual value of $4000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books. But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $4000 $18764+2720=21484

d) If expected residual value of $3000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $3000 $18764+$2040=$20804

5 0

3 years ago

Assuming bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of bourne's net §1231 gain for

Novosadov [1.4K]

<span>The Menendez family has a net income of $4,500. The chart shows their cost-of-living percentages. How much do they spend on transportation?</span>

7 0

3 years ago

Identify the accoun title.

hammer [34]

Answer:

1. On formation of new Company and receipt of cash of $ 12,000 from shareholders

Cash Dr $ 12,000

To Share capital Cr $ 12,000

2. On purchase of truck for $ 18,000

Truck A/c Dr $ 18,000

To Cash Cr $ 18,000

(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)

3. On payment of dividend in cash

Dividend A/c Dr $ 10,000

To Cash Cr $ 10,000

4. On purchase of land

Land A/c Dr $ 50,000

To cash Cr $ 50,000

( On purchase of land on payment of $ 50,000).

There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:

Land A/c Dr $ 55,000

To Cash Cr $ 50,000

To gain on purchase of land Cr $ 5,000

5 On declaration of dividend

Dividend A/c Dr $ 1,100

To Dividend Payable A/c Cr $ 1,100

On payment of dividend after 60 days

Dividend payable A/c Dr $ 1,100

To Cash Cr $ 1,100

6. After each month wages will be due to its workers, then accounting entry will be recorded as under

Wages A/c Dr $ 5,600

To Wages payable A/c Cr $ 5,600

After two weeks, on payment of wages, the accounting entry will be recorded as under

Wages payable A/c Dr $ 5,600

To cash Cr $ 5,600

Explanation:

7 0

3 years ago