Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.
Answer: A. identifying pricing objectives and constraints
Explanation:
It is in the above mentioned stage of the Price Setting Process that the sales growth rate and business stages are accounted for as constraints or objectives to be met.
In identifying the pricing objectives and constraints, the expected growth rate should be factored in to find out what price the goods can be sold at to ensure that sales grow at the required rate for example.
Answer:
Dr Land 397,950
Cr Cash 117,950
Cr Notes payable 280,000
Explanation:
Certain ordinary and necessary costs can be included in the purchase cost of land:
- cost of the land
- title fees
- applicable taxes
- legal fees
- broker fees
- survey costs
- leveling costs
- zoning fees
- etc.
In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950
Answer: Debit: Interest expense $9900
Debit: Premium on bonds payable $540
Credit: Cash $10440
Explanation:
First and foremost, the cash payment will be calculated as:
= $174,000 × 12% × 6/12
= $174,000 × 0.12 × 0.5
= $10440
Interest expenses will be calculated as:
= $180000 × 11% × 6/12
= $180000 × 0.11 × 0.5
= $9900
Therefore, the journal entry to record the first interest payment would be:
Debit: Interest expense $9900
Debit: Premium on bonds payable $540
Credit: Cash $10440
Answer:
A. $6,507,500
Explanation:
Accumulated depreciation is the contra asset account and it needs to be adjusted in the cost of the relevant assets to represent the net book value of the assets. Building and Land are classified as the property.
Buildings and equipment $4,622,500
Accumulated depreciation <u>($622,500) </u>
Net Buildings and equipment $4,000,000
Land <u>$2,507,500</u>
Total Property, plant, & equipment <u>$6,507,500</u>
The following accounts are non Property, plant, & equipment.
Patents $375,000
Goodwill $325,000
Accounts receivable 215,000
