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Rina8888 [55]
3 years ago
11

"If Jason receives his quarterly bonus of $3,000 and spends $2,100 on a computer and puts the rest in his savings account, what

is Jason’s MPC and MPS?"
Business
1 answer:
snow_lady [41]3 years ago
7 0

Answer: 0.70; 0.30

Explanation:

Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.

Increase in income = $3,000

Increase in spending = $2,100

Increase in savings = $3,000 - $2,100 = $900

MPC = $2,100/$3,000

= 0.70

MPS = $900/$3,000

= 0.30

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Answer:

Instructions are listed below

Explanation:

Giving the following information:

Machine costs= $115,000.

The estimated service life of the machinery is 10 years.

The estimated residual value is $5,000.

The machine is expected to produce 220,000 units during its life.

1) straight line depreciation= (Machine purchase price - residual value)/ use life

straight line depreciation= (115000 - 5000)/10= 11000

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2019= 11000

2) sum of the years' method= (remaining useful life of the asset/sum of the years' digits)* depreciable cost

2018= 10/(10+9+8+7+6+5+4+3+2+1)*(115000-5000)= 110000/55=(10/55)*110000= 20000

2019= (9/55)*110000= 18000

3) Double declining balance method= 2* [(Asset cost - residual value)/useful life of the asset]

2018= (1100000/10)*2= 22000

2019= (110000-22000/10)*2= 17600

4) One hundred fifty percent declining balance= [(purchase value-salvage value)/use years]*1.5

2018= (110000/10)*1.5= 16500

2019= [(110000-16500)/10]*1.5= $14025

8 0
3 years ago
Wildhorse Co. began the year 2022 with retained earnings of $651000. During the year, the company sold additional shares of stoc
Volgvan

Answer:

$1,800,000

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Explanation:

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