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3 years ago

If there is a shortage of loanable funds, then:

Business

1 answer:

lana66690 [7]3 years ago

7 0

Answer: The correct answer is "d. there will be no shifts of the curves, but the real interest rate rises.".

Explanation: If there is a shortage of loanable funds, then: there will be no shifts of the curves, but the real interest rate rises.

this causes as the interest rate rises to equilibrium the amount offered of loanable funds increases and the quantity demanded of loanable funds decreases

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The following information describes the investment portfolio of Stevens, Incorporated. All of the securities were purchased on 3

Wewaii [24]

Answer:

a. 3/1/2019

Dr Investment in Tlet Inc $23,000

Dr Investment in Loxat Co $100,000

Dr Investment in Barnes Inc $46,000

Cr Cash $169,000

12/31/2019

Dr Fair value adjustment $41,000

Cr Unrealised holding gain or loss,Net $41,000

5/1/2020

Dr Cash $81,000

Cr Investment in Loxat Co $50,000

Cr Recognized gain on sale $31,000

12)31/2020

Dr Fair value adjustment $15,500

Cr Unrealised holding gain or loss,Net $15,500

b. Fair value adjustment $41,000

Fair value adjustment $15,500

Explanation:

a. Preparation of the Necessary Journal Entries for 2019 and 2020

3/1/2019

Dr Investment in Tlet Inc $23,000

Dr Investment in Loxat Co $100,000

Dr Investment in Barnes Inc $46,000

Cr Cash $169,000

12/31/2019

Dr Fair value adjustment $41,000

Cr Unrealised holding gain or loss,Net $41,000

($169,000-$210,000)

5/1/2020

Dr Cash $81,000

( $81 per share*1,000 shares)

Cr Investment in Loxat Co $50,000

[($100,000/2,000 shares=50 shares)

[($50*1,000 =$50,000)

Cr Recognized gain on sale $31,000

($81,000-$50,000)

12)31/2020

Dr Fair value adjustment $15,500

Cr Unrealised holding gain or loss,Net $15,500

[($119,000-$175,500)-$41,000]

($23,000+$50,000+$46,000=$119,000)

b.Calculation to Complete the fair value adjustment

A. Fair value adjustment =$169,000-$210,000

Fair value adjustment $41,000

B. Fair value adjustment=[($119,000-$175,500)-$41,000]

Fair value adjustment=$56,500-$41,000

Fair value adjustment= $15,500

Therefore the Fair value adjustment will be:

A. $41,000

B. $15,500

4 0

3 years ago

The following are selected 2015 transactions of Pedigo Corporation.

emmainna [20.7K]

Answer:

Explanation:

The necessary adjusting entries at December 31 to record amortization required by the events above has been prepared.

It should also be noted that due to the goodwill having an indefinite life, no entry was made to amortize the goodwill.

It should be noted that the amortization expense was gotten as:

Annual amortization = $75,000/5

= $15,000

2015 amortization= $15,000 × 8/12months

= $15,000 × 2/3

= $30,000/3

= $10,000

Kindly check the attached file forthe adjusting entries

5 0

3 years ago

Two TransWorld Airline mechanics failed to properly repair the landing gear of a 747. As a result, the plane’s landing gear coll

lisabon 2012 [21]

Answer:

Explanation:

the airport would be liable because the fire truck blowing a tire and hitting the pole was the direct cause. not the failure of the landing gear

5 0

3 years ago

Q 7.40: Approximately 85% of the customers at Hanson’s Furniture Store purchase furniture using store credit. The store’s averag

ziro4ka [17]

Answer: Offer incentives to Customers to reduce Collection time.

Explanation:

Hanson’s Furniture Store should work to reduce the amount of time it takes to collect payments from customers. It takes them over 2 months to collect payments on average and compared to a payables payment in 30 days that's quite troublesome.

They should therefore work to reduce their Receivables Collection time.

One way they can do that is to offer incentives such as trade discounts. A popular one would be the 2/10, net 30 rule. This means that the customer would get a 2% discount if they pay in 10 days or else they will pay the full amount in 30 days. This incentive can go a long way in reducing Payables collection periods.

3 0

3 years ago

Xena is a manager at Ex fox Co. She finds two of her subordinates arguing about which format to follow for their power-point pre

Andrew [12]

Answer:

C. The Withdraw Style

Explanation:

The Withdraw or Avoid style is a style that completely evades a conflict. This style is mostly used or appropriate in the following conditions:

when the conflict is judged to be trivial, as in the question, Xena sees the issue as a trivial
it doesn't require much time to think,
the person invloved does not see the chance of winning the arguments in the conflict or
there is a fear of being met with resentment.

In the withdraw style, the conflict can be postponed indefinely or completely avoided anytime it comes up, In this style, the person involved oes not also see the need to pursue or enforce any beliefs but just allows the issue to go as it is.

Other styles include: Accomodating, Collaborating and Competing.

7 0

4 years ago