Answer:
$100 million ; $10 million
Explanation:
Required reserve ratio (r) = 10%
Worth of bond = $10,000,000
The smallest increase can be thought of as being the $10million generated from open market operation and could be held by the bank as reserve.
To calculate the largest increase in deposit:
Money multiplier * deposit (worth of bond)
Money multiplier = (1 / reserve ratio)
Money multiplier = (1 / 0.1) = 10
Increase in deposit = 10 * $10,000,000 = $100,000,000 ( $100 million)
Answer:
Switching cost
Explanation:
Switching cost is defined as the cost that is incurred in the course of changing from one supplier to another.Switching cost can be in monetary terms like compensation and termination fees and also in non monetary terms like time , effort and psychological stress.
In the given scenario , the defined activities of Right foods and the intention of Ralph clearly point out the process of potential switch of suppliers , even as the potential switching cost of $0.5 million for termination and $100,000 for replacing of software and retraining of staff are apparent.
D. $2,333,572
To find the future value of annuity ordinary the formula is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 3000
R interest rate 0.1025
N time 45 years
So
Fv=3,000×(((1+0.1025)^(45)−1) ÷(0.1025))=
<h2><u>$2,333,571.66
</u></h2>
Good luck!
Answer:
Yes, it is true that for the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose principal purpose was to recognize a loss on the property by the liquidating corporation. That is why A net built in loss has to be determined first.
Explanation:
Limitation is equal to the value of the stock of the loss borne by corporation immediately before the ownership changes.
The basis limitation rule only applies when there is a net built-in loss.
Built-in losses are the excess of the adjusted basis for U.S. federal income tax of any Contributed Property over its Agreed Value as of the time of contribution treated as deductions or losses in the year recognized.
A net built-in loss occurs when the aggregate adjusted basis of the property exceeds its fair market value.
