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Tema [17]
3 years ago
9

Suppose American Bank has​ $500 in deposits and​ $200 in reserves and that the required reserve ratio is 10 percent. In this​ si

tuation, American Bank has A. ​$50 in required reserves. B. ​$50 in excess reserves. C. ​$200 in excess reserves. D. ​$200 in required reserves.
Business
1 answer:
Alekssandra [29.7K]3 years ago
6 0

Answer:

A. ​$50 in required reserves.

Explanation:

Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.

As per given data

Deposits = $500

Reserves = $200

Required Reserve ratio = 10 percent

Required reserve = Reserve required / Total Deposit

0.1 = Reserve required / $500

Reserve Required = $500 x 0.1

Reserve Required = $50

Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150

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Explanation:

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McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's
anzhelika [568]

Answer:

D. $1,800 Decrease

Explanation:

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01 Jan                             10,000               8,000             2,000

Depreciation                  -1000                 -800                  -200

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5 0
3 years ago
You are a junior in college. You sent your resume to a half-dozen companies hoping to get a summer internship. Two weeks ago XYZ
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Answer:

I would politely reach out to XYZ organization and let them know I won't be taking them on their offer

Explanation:

In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.

If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.

3 0
2 years ago
Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued
Mama L [17]

Answer: $109,080; $145,920

Explanation:

Based on the information that have been provided in the question, the following can be gotten:

The amount for income tax expenses will be:

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= $109,080

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Reported income = $303,000

Less income tax = $109,080

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3 0
3 years ago
The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a
Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Fixed Manufacturing Costs                                        <u>  $ 41,000</u>

Gross Margin                                                                $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs                                                 $ 38,000

Variable Marketing Costs                                         <u>   $ 11,500</u>

<u>Net Profit                                                                    $ 65,500</u>

Nile Castings

Income Statement Under Absorption Method

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Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Variable Marketing & Administrative Costs               <u> $ 11,500</u>

Contribution Margin                                                  $ 144,500

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Fixed Manufacturing Costs                                       $ 41,000

Fixed Marketing Coss                                               <u>  $ 38,000</u>

<u>Net Profit                                                                    $ 65,500</u>

3 0
3 years ago
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