Answer:
change in GDP= $440 billion
Explanation:
Given :
Increase in the taxes by government = $110 billion
marginal propensity to the consumer (MPC)= 0.80
By formula we know that
Tax multiplier = -MPC/(1-MPC)
now putting the value we get
Tax multiplier = -
= -4
The change in GDP is given by( Tax multiplier* Increase in the taxes )
Therefore,change in GDP= billion
Minus sign indicate decrease in GDP
Answer:
61,198.47
Explanation:
First we solve for the present value of the note receivables at January 1st, 2021 As we are asked for the interest revenue on the 2021 incoem statment
Maturity $750,000.00
time 2.00
rate 0.10000
PV 619,834.7107
now, we calcualte the interest considering the 10% implicit interest
619,834.7107 x 0.10 = 61,198.47
This will be the interest revenu for the year 2021
Answer:
$300,000
Explanation:
Option expenses to be recognized in the first year ,
= × period elapsed - Expenses already recognized
wherein N = No of options expected to be vested
FV = Fair value on the grant date
Vesting period = The time period after which the options can be exercised
Thus, after the first year, employee compensation expenses to be recognized
= × 1 year = $300,000 - 0 = $300,000
Similarly, for the second year, option expenses to be recognized would be,
= × 2 years - $300,000 = $300,000
Similarly for the third year
= × 3 years - ($300,000+ 300,000) = $300,000
The journal entry to be passed each year would be
Stock Option Compensation Expense A/C Dr. $300,000
To Stock Options A/C $300000
(Being stock option expenses for the year recognized)