Which plan offers a tax-free education?

Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If t

Verizon [17]

Answer:

Excess reserve = $180 million

Explanation:

Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.

Therefore the required reserve for this bank = 10% ×$200 million= $20 million

Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.

It is calculated as = Total deposit - Required reserve

So we apply this to our question

Excess reserve = $200 million - (10% × $200 million) = 180 million

Excess reserve = $180 million

6 0

4 years ago

During 2013, Company A has the following transactions involving its common and preferred stock:

Dennis_Churaev [7]

Answer:

Explanation:

Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares

Bank A/c………Dr. 520000

To Share Capital A/c. 160000

To Paid in excess of par 360000

Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share

Bank A/c………Dr. 900000

To Preferred Stock A/c. 600000

To Paid in excess of par. 300000

When the market value of the common stock reached $15 a share, company A declared a 3-for-1 stock split reducing the par value to $188 per share.

Share Capital (par value at 8) 400000

To Share Capital (par value at 2.67)

400000

7 0

3 years ago

1 2 3 all a firm that purchases electricity from the local utility for $350,000 per year is considering installing a steam gener

nikdorinn [45]

The more attractive choice is the choice that has less present value which is Using steam generator valued at $1, 364,165.02

<u>Given data;</u>

cost of electricity per year: = $350,000

cost of installing a steam generator = $280,000

generator operation cost per year = $260,000

generator will last for = 5 years

cost of capital for local utility option = 10%

purchasing electricity from the local utility

cost of electricity per year: = $350,000

cost of capital for local utility option = 10%

Present value = - 350,000 - 350,000 / 1.10 - 350,000 / 1.10^2 - 350,000 / 1.10^3 - 350,000 / 1.10^4

Present value = - 1,453,452.906

Present value = - 1,453,452.91

Using steam generator

cost of installing a steam generator = $280,000

generator operation cost per year = $260,000

Present value = - 280,000 - 260,000 - 260,000 / 1.10 - 260,000 / 1.10^2 - 260,000 / 1.10^3 - 260,000 / 1.10^4

Present value = - 1, 364,165.016

Present value = - $1, 364,165.02

Read more on Present value here;

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4 0

2 years ago

Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per un

Bond [772]

Answer and Explanation:

The preparation of the income statement is presented below:

Sales $3,900,000

Less: Cost of goods sold $1,872,000

Gross profit $2,028,000

Less: Operating expenses

Commissions expense $429,000

Rent expense $54,000

Advertising expense $468,000

Office salaries expense $234,000

Depreciation expense $141,000

Interest expense $7,150

Total operating expenses -$1,333,150

Income before taxes $694,850

Less: Income tax expense $208,455

Net income $486,395

Working notes:

1. Commissions expense is 11 % of sales

= 11% × $3,900,000

= $429,000

2. Advertising expense is 12 % of sales

= 12% × $3,900,000

= $468,000

Interest expense is 11 % annually on a $260,000

= 11% × 260000 × 3 months ÷ 12 months

= $7,150

Income tax expenses =is

= 30% × $694,850

= $208,455

As we know that the income statement records the expenses and the revenues and the same is shown to determine the net income or net loss for the given period

8 0

3 years ago

What is the difference between general and applied ethics

Snezhnost [94]

Answer:

The answer is below

Explanation:

Both General ethics and Applied Ethics are part of philosophical knowledge in understanding humans and their society.

Hence, the difference between general and applied ethics is:

General ethics is a philosophical term that is used to describe the theory of values in human activities. It deals with answering the controversial questions of human morality by establishing the idea of good and evil, right and wrong.

On the other hand, Applied Ethics is a term used in philosophy to describe a branch of ethics that is established to answer the issue of moral dilemmas, strategies, and operations in individuals' life, organizations, technology, and state.

5 0

3 years ago