The Bankruptcy Abuse Prevention and Consumer Protection Act allows the bankruptcy court to disallow a petition for a Chapter 7 bankruptcy if the individual filing for bankruptcy earns an income that is too high to meet the standards of the means test.
<h3><u>
Explanation:</u></h3>
The main aim of The Bankruptcy Abuse Prevention and Consumer Protection Act is the prevention of abuse against the process that are involved in Bankruptcy. The process that are associated with the asset liquidation is being controlled by the Chapter 7 of Title 11 U.S bankruptcy code.
The liquidation of non exempt assets to pay creditors is carried out by a trustee. There will be a discharge of the debt that remains when there is an exhaust of proceeds. If the income of an individual is too high to meet the standards of mean test , then, according to his act the bankruptcy court to disallows a petition for a Chapter 7 bankruptcy.
Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
Explanation:
Based on the information given in the question, the money multiplier will be calculated thus:
Money multiplier = 1/Required reserve ratio
where,
Required reserve ratio = 20%
Money Multiplier will now be:
= 1/0.20
= 5
Therefore, the maximum money-lending potential will be:
= $80 million × 5
= $400 million
Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
The present value (PV) of an annuity of P equal periodic payments for n years at r% is given by:
where
is the <span>present value of an annuity factor for n years at r%.
Given that </span>a<span>
company borrowed $40,000 cash from the bank and signed a 6-year note at
7% annual interest and that the present value of an annuity factor for 6 years
at 7% is 4.7665.
Then
Therefore, </span><span>the annual annuity payments equals $8,391.90</span>
The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.
<h3>What is a journal entry?</h3>
It should be noted that a journal entry is used to record the financial activities of a company.
In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.
Learn more about inventory on:
brainly.com/question/24868116
