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3 years ago

Why is zero unemployment and zero inflation not ideal for the economy?

1 answer:

5 0

Because then everyone would have money and there would not be enough supply for the demand and the economy would collapse.

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On January 1, a company issues bonds dated January 1 with a par value of $380,000. The bonds mature in 5 years. The contract rat

Pavlova-9 [17]

Answer:

See explanation

Explanation:

Selling Price of Bonds =396,210

Journal Entry

Date Account Title and Explanation Debit Credit

1 Jan Cash $396,210

Bond payable $380,000

Premium on bond payable $ 16,210

(To record issuance of bond)

Working

Premium On Bonds Payable = Selling Price of Bonds - Value of Bonds

= $396,210 - $380,000 = $ 16,210

Interest payment:

Semi-annual interest = 7%× 380,000× 1/2 =13,300

Date Account Title and Explanation Debit Credit

June 30 Bond interest expense $13,300

Cash $13,300

(To record semi annual interest paid on bond)

4 0

2 years ago

Frazier Company sells women's ski jackets. The average sales price is $272 and the variable cost per jacket is $122. Fixed Costs

padilas [110]

Answer:

b. $2,205,000

Explanation:

We know,

Contribution Margin = Sales (Revenues) - Variable Cost (expense)

Contribution margin is the difference between sales and variable cost.

Given,

Sales per unit = $272

Variable cost per unit = $122

Sales volume (Number of Ski Jackets) = 14,700 jackets

Now, we use contribution margin format income statement to determine the contribution margin for 14,700 jackets.

Sales ($272 × 14,700 jackets) $3,998,400

<u>Less: Variable expense ($122 × 14,700 jackets) $(1,793,400)</u>

Contribution Margin [($272 - 122) × 14,700 jackets] = $2,205,000

Therefore, option B is the answer.

4 0

3 years ago

Your client holds 1 listed XYZ August 50 call. A cash dividend of $2.50 per share is declared. On the ex-date, the terms of the

erik [133]

Answer:

(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100

Explanation:

The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.

3 0

3 years ago

The benefits of comparing actual performance of the operations against planned goals include all of the following except:_______

laiz [17]

Answer:

c. determining how managers are performing against prior year's operating results.

Explanation:

Management compare actual performance against planned goals to enable them evaluate deficiencies in the actual performance which can give directions to areas that should be improved upon. Moreover, comparing actual performance and planned goals expose deficiencies in the system which management would take into consideration when making future plan hence eliminate unplanned expenditures.

Again, there is also identification of priorities to accomplish objectives when actual performance are compared against planned goals.

8 0

2 years ago

Which of the following scenarios is consistent with the Laffer curve?

sergejj [24]

Answer:

No option is correct.

a. An increase in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates increase beyond the optimal level, instead of increasing total revenue they will decrease it.
b. The tax rate is 1 percent, and tax revenue is very high. ⇒ FALSE, very low tax rates will result in very low government revenue.
c. The tax rate is 99 percent, and tax revenue is very high. ⇒ FALSE, very high tax rates will result in very low government revenue.
d. A decrease in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates decrease beyond the optimal level, instead of increasing total revenue they will decrease it.

Explanation:

According to Arthur Laffer, a direct and sometimes inverse relationship exists between tax rates and government revenue. Sometimes a lower tax rate can result in higher government revenue. But that is not always the case. Sometimes an increase in the tax rate can increase government revenue. The optimal tax rate (T*) is equal to the tax rate that will allow the government to collect the highest amount of revenue. Any lower or higher tax rate will decrease government revenue.

3 0

3 years ago