The Johnson's can't sue the driver in the Federal Court because the Johnson's live in the same state (since the driver lives near the Johnson's in the same time) and the damages ($5,000.00) are too small.
Your money will double in approximately 11 years and quadruple in approximately 22.
Use the Rule of 72 for doubling (72/interest rate= number of years to double) and the Rule of 144 to quadruple (144/interest rate= number of years to quadruple).
Answer:
The largest amount by which the money supply can increase is $1,875
Explanation:
According to the given data, we have the following:
Checking/Demand Deposit = $150 (which is assumed to be the part of new money supply)
Required reserve ratio = 8% = 0.08
Therefore, first we need to calculate the money supplier as follows:
Money multiplier 1/rr
Money multiplier = 1/0.08
Money multiplier = 12.5
Hence for $150 deposited the money supply will increase by $(150×12.5) =$1,875
The largest amount by which the money supply can increase is $1,875
Answer:
Felix Incorporated
Exchange of Preferred Stock for Land:
Journal Entries:
Debit Land $90,000
Credit Preferred Stock $81,250
Credit Additional Paid-in Capital - Preferred Stock $8,750
To record the issue of 1,250 of $65 par-value preferred stock for land with a fair price of $90,000.
Explanation:
Felix Incorporated will debit Land with the fair price of $90,000 and Credit the Preferred Stock account with $81,250 (1,250 x $65) at par-value. The difference between the fair price of land and the preferred stock at par-value is credited to additional paid-in capital account for preferred stock. Felix Incorporated cannot take into account the current market value of the stock at $75 in its accounting records. The current share price of $75 is for the benefit of investors, and can only serve as basis for Felix Incorporated to decide transactions with potential investors.