Answer:
Entries are given below
Explanation:
Requirement A.
On January 1, 2020 Carrow purchased held to maturity investment, $60,000 of the 8% 5year bonds of Harrison, Inc for $65,118
Entry DEBIT CREDIT
Held-to-maturity securities $65,118
cash $65,118
Requirement B.
The receipt of semiannual interest and premium amortization
Entry DEBIT CREDIT
cash (60,000 x 8% x 6/12) $2,400
held to maturity sercurities $446
interest revenue(65,118 x.6% x6/12) $1,954
Answer:
Wages in US would decrease
Wages in Mexico would increase
Explanation:
The increase in the supply of labour in the US while demand remains unchanged would lead to an excess of supply over demand. This would cause equilibrium wage to fall and quantity to rise.
While in the US, the supply of labour would fall. This would increase wage.
I hope my answer helps you
Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.
<u>Explanation:</u>
Expansion happens when an economy becomes because of expanded spending. At the point when this occurs, costs rise and the money inside the economy is worth short of what it was previously. The cash basically won't purchase as much as it would previously. At the point when a cash is worth less, its swapping scale debilitates when contrasted with different monetary standards.
There are numerous strategies used to control swelling; some function admirably, while others may have harming impacts. For instance, controlling swelling through pay and value controls can cause a downturn and cause work misfortunes. One well known strategy for controlling swelling is through a contractionary financial arrangement.
The objective of a contractionary strategy is to lessen the cash supply inside an economy by diminishing security costs and expanding loan fees. This diminishes going through in light of the fact that when there is less cash to go around: the individuals who have cash need to keep it and spare it, rather than spending it. It additionally implies there is less accessible credit, which can diminish spending. Diminishing spending is significant during expansion since it helps stop monetary development and, thus, the pace of swelling.
There are three fundamental instruments to complete a contractionary approach. The first is to build financing costs through the national bank. On account of the U.S., that is the Federal Reserve. The Fed Funds Rate is the rate at which banks acquire cash from the legislature, yet so as to bring in cash, they should loan it at higher rates.1
Answer:
A. NoEquity $18.27million
NoDebt $22.75million
B. NoEquity 28.11%
NoDebt 35%
Explanation:
A. Calculation to determine the net income
NoEquity Inc., NoDebt Inc.,
Operating income $32.5 million $32.5 million
Less: Interest $6.4 million $0
($64m × 0.1)
Taxable income $ 26.10million $32.5 million
Less: Taxes (30%) ($7.83million) ($9.75million)
NET INCOME $18.27million $22.75million
Therefore The Net income for the two firms are :
NoEquity $18.27million
NoDebt $22.75million
B. Calculation to determine the Return on assets
NoEquity
Return on assets =$18.27million/$65 million
Return on assets =0.2811*100
Return on assets =28.11%
NoDebt
Return on assets = $22.75million/$65 million
Return on assets =0.35*100
Return on assets =35%
Therefore The return on assets for the two firm are:
NoEquity 28.11%
NoDebt 35%
