In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.
<h3>What is meant by capitalization?</h3>
This is the term that is used in accounting to talk about the fact that an item can be recorded as an asset. What this means is that the expenditure is going to be made to appear in the balance sheet and it would not have to appear in the income statement.
Hence we have to say that In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.
Read more on capitalization here: brainly.com/question/1293334
#SPJ1
As a result, there is a decrease in the quantity of gasoline demanded. Demand is the amount of a commodity or a service that consumers are willing and able to buy at a given market price while supply is the quantity of goods produced by the producers to the market. Increase in prices of a commodity leads to a decrease in the quantity demanded while a decrease in price while keeping other factors constant results to an increase in demand.
Answer:
1. Apple Stocks Dr. $75,000
Deferred Donation Income Cr. $75,000
2. Apple Stocks Dr. $1,500
Gain on Apple Stocks Cr. $1,500
3. Cash Dr. $ 76,000
Gain/Loss on Apple stocks Dr.$1,500
Apple Stocks Cr.$76,500
Explanation:
1. when stocks are received subject to a condition that we can't recognize donation income. therefore it is recorded as liability. please note that deferred income is called as liability.
2. When value of stocks increase, asset stock of apple also increase by differential amount.
3. when asset is sold, the loss is recognized and assets are knocked off from books and cash asset is recorded.
Answer:
A. $2,500
B. $60
Explanation:
A. Calculation to determine How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position
Initial Margin = 100*$50*50%
Initial Margin = $2,500
Therefore The amount of securities that you must put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position is $2,500
b. Calculation to determine How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position
First step is to calculate the Maintenance Margin per share
Maintenance Margin per share = $50*30%
Maintenance Margin per share =$15
Second step is to calculate the Rise in price required
Rise in price required = $50*50% - $15
Rise in price required= $10
Now let calculate How high can the price of the stock go
Price of stock=$50+$10
Price of stock= $60
Therefore How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position is $60
Answer
C. The government spending to strengthen the economy
Explanation
The fiscal policy is applied by the government to influence the economy through adjusting revenue and spending levels. The Fiscal policy is applied with the monetary policy to give a direction of the economy and reach the set economic goals. In this case, taxation and money transfers has been applied.
