If the circular flow model shows that if the government hands out a tax cut, what should happen with the money?

Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost.

GrogVix [38]

Answer:

depreciation expense 5,800 debit

acc dep - building 4,320 credit

acc dep - equipment 1,480 credit

Missing information

GRECO RESORT TRIAL BALANCE AUGUST 31, 2014

Buildings 120,000 Equipment 16,000

Explanation:

First, calcualte the depreciable amount:

cost less salvage value:

120,000 - 10% = 120,000 * (1 - 0.1) = 108,000

Now we multiply this by the depreciation rate which represent 1/useful life

108,000 x 4% = 108,000 x 0.04 = 4,320

We do the same with the equipment

16,000* (1 - 0.1) = 14,800 amount subject to depreciation

14,800 * 10% = 14,800 x 0.1 = 1,480

he adjusting entry will debit the depreciation expense and increase the accumulated depreciation of eahc asset

6 0

3 years ago

A cognitive psychologist believes that people learn better when they spread out their studying over several days, so she creates

Ainat [17]

The participants were tested according to the number of days they Mandarin every 20 minutes. It's been testing which would be the best model to study a foreign language. This is an experimental study of identifying the most effective method based on the experiments.

8 0

4 years ago

investment is made at r percent compounded annually, at the end of n years it will have grown to A = P(1 + r)n . An investment m

bixtya [17]

Answer:

$1,500

Explanation:

Given the compounding formula $A = P(1+r)^{n}$

And given an investment (P), made at 16% compounded annually (r), and an ending amount of $1,740 (A) at the end of the year (n = 1 year), the original amount invested (P) can be computed as follows.

$1,740 = P(1+0.16)^{1}$

$1,740 = P * 1.16$

= P = 1,740/1.16 = 1,500.

Therefore, the original investment was $1,500.

3 0

3 years ago

Marika received a tip from a close friend who is an executive manager of a publicly traded company called MicroGreen Inc. The ma

saveliy_v [14]

Answer:

Information asymmetry.

Explanation:

Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.

This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.

But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.

Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.

7 0

3 years ago

Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding

Burka [1]

Answer:

$2.73

Explanation:

Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding

where,

Earnings Attributed to Common Stockholders = $420,000

and

Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000

therefore,

Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73

Conclusion

Rudyard's diluted EPS is $2.73

7 0

3 years ago