Answer and Explanation:
Due to war outbreak, government increases their spending temporarily. Hence, this leads to a shift of the output demand curve towards the right. Also, since the government spending would be more, this would be more than the reduction in consumption due to a decrease consumer wealth. Simultaneously, due to a decrease in consumer wealth, this would shift the output supply curve towards the right. Since the effect of consumer wealth is subjected to be small, this puts the demand curve more further as compared to the output supply curve. Thus, the interest rate would increase.
Answer:
Classifying a cost as either direct or indirect depends upon B: whether the cost can be easily traced with the cost object
Explanation:
The classification of a cost as direct or indirect depends on the connection to the cost object. If the cost can be linked undeviatingly to the cost object, it is direct. On the contrary, if it can't be traced to the cost object it is indirect.
A. whether a cost is fixed or variable. Incorrect. A direct cost can be fixed or variable.
B. whether the cost can be easily traced with the cost object. Correct.
C. the behavior of the cost in response to volume changes. Incorrect. This is a variable cost (or fixed that changes in relevant range)
D. whether the cost is expensed in the period in which it is incurred. Incorrect.
Pay the full balance when you receieve your monthly statement
Answer:
PV= $529,700.71
Explanation:
Giving the following information:
Cash flow= $50,000
the number of years= 20
Interest rate= 7%
First, we need to calculate the future value of the cash flows. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay
FV= {50,000*[(1.07^20)-1} / 0.07
FV= $2,049,774.62
Now, we can calculate the present value.
PV= FV/(1+i)^n
PV= 2,049,774.62/1.07^20
PV= $529,700.71
Answer:
$25,280 per year
Explanation:
The computation of the revised depreciation for both the second and third years is shown below:
But before that following calculations need to be done
Depreciation for year 1 = [Cost – Salvage Value] ÷Useful Life
= [$65,200 - 2,000] ÷ 5 Years
= $12,640
Now Book Value at point of revision is
= Cost - First year depreciation
= $65,200 - $12,640
= $52,560
Now
Remaining Depreciable Cost = Book Value at the point of revision - Salvage Value
= $52,560 – 2,000
= $50,560
And, finally Depreciation per year for Year 2 and 3 is
= Depreciable cost / Remaining useful life
= $50,560 ÷ 2 Year
= $25,280 per year
