A futures contract on a 30 day Eurodollar time deposit is currently selling at an IMM index of 95.75 percent. The IMM index on a
1 answer:
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Answer:
Explanation:
The necessary adjusting entries at December 31 to record amortization required by the events above has been prepared.
It should also be noted that due to the goodwill having an indefinite life, no entry was made to amortize the goodwill.
It should be noted that the amortization expense was gotten as:
Annual amortization = $75,000/5
= $15,000
2015 amortization= $15,000 × 8/12months
= $15,000 × 2/3
= $30,000/3
= $10,000
Kindly check the attached file forthe adjusting entries
Answer: Option (c) is correct.
Explanation:
Given that,
Price elasticity of demand = 0.5
Percentage increase in price = 8%
Price elasticity of demand =
0.5 =
Percentage change in quantity demanded = 0.5 × 8
= 4%
Therefore, if the price rises by 8% then as a result quantity demanded decreases by 4%.