Answer:
The cost of the origination fee is $200 in dollar terms.
Explanation:
1 point is 1% which translates to 1/100,hence 0.2 point is the same 0.2/100
The cost of the original fee in dollar terms is calculated thus:
0.2/100*$200000=$400
As a result, the origination fee is $200 in dollar terms
Origination fee or processing fee is an upfront fee charged by a lender in a bid to recover loan processing administration costs from borrowers.
The points charged as origination fee differs from one lender to another,it would make sense to say that the higher the mortgage amount or loan the lower the origination fee in percentage terms.
Answer:
Points along and inside the PPF (Production Possibilities Frontier)
Explanation:
PPC stands for Production Possibility Curve, which measures or evaluates the maximum output of the two goods and that is using the fixed amount of input.
The point on the curve states how much or amount of each good is to produced when the resources are shifted or moved from making more of one good or less of the other one.
Therefore, the attainable production points on the PPC are the points that are inside and along the production possibilities Frontier (PPF).
Answer:
Hodge Company
Calculation of Estimated Loss on Inventory in the
Flood Using Gross Margin (Profit) Method
November 21, 2016
Inventory at November 1, 2016 $96,000
Purchases from November 1, 2016 <u>$131,000</u>
to date of flood
Cost of goods available for sale $227,000
<u>Estimated cost of goods sold:</u>
Net sales from November 1, 2016 $250,000
to date of flood
Less: Estimated gross margin <u>$75,000</u> <u>$175,000</u>
(250,000 * 30%)
Estimated cost of inventory at date of flood $52,000
Less: Salvage goods <u>$9,200</u>
Estimated loss on inventory in the flood <u>$42,800</u>
<span>Out of the prepaid rent of $2800, $700, the actual rent for the month of January, has to be debited to rent account and prepaid rent account will be credited. Now the prepaid rent account will show a smaller figure(2800-700 = 2100) This is the amount that will be shown in the prepaid rent account in the balance sheet. Of course it will be shown as an asset since it has a debit balance.</span>
Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.