Answer:
$570,000
Explanation:
Missing question: <em>"On December 31, 2022,50,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2020"</em>
Amount of compensation expense = [(33-20)*120,000*3/4] - [(30-20)*120,000*2/4]
Amount of compensation expense = [13*120,000*3/4] - [10*120,000*2/4]
Amount of compensation expense = 1,170,000 - 600,000
Amount of compensation expense = $570,000
So. the amount of compensation expense that Korsak should recognize for the year ended December 31, 2020 is $570,000.
Answer:
The answer is: Today you could accept any lump sum ≥ $111,144.18
Explanation:
First we must calculate the present value of the three cash flows. We can do it manually or in an excel spreadsheet using the PV formula.
Using an excel spreadsheet the present value is $111,144.18
Today you could accept any lump sum ≥ $111,144.18
You can do this calculation manually also:
pv = [$36,000 / (1 + 7%)] + [$42,000 / (1 + 7%)²] + [$50,000 / (1 + 7%)³] = $111,114.18
Answer:
c) much less than one-to-one
Explanation:
Based on info of the GDP associated with Budget deficits and trade deficits we see that the private saving not tend to increase on cases when governments run large budget deficits, by the other hand the private saving tend to decrease when governments reduce deficits or run large budget surpluses.
And based on this info we can say that the offsetting effects associated to private saving compared to government borrowing needs to be much less than one-to-one.
In the US occurs a Budget Deficit around 1998-199 since the % of GDP increase considerably around 3-4% and a trade deficit occurs around 2004 when the % of GDP was around -6%.