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Yanka [14]
2 years ago
14

Suppose a banking system receives a new deposit of $1,000. If the reserve requirement is 20%, by how much can the total volume o

f deposits in that banking system ultimately rise as a result, assuming all excess reserves are loaned out and all loan proceeds are re-deposited?
Business
1 answer:
AnnZ [28]2 years ago
7 0

Answer:

Increase in initial deposit will be $4000

Explanation:

We have given initial deposit = $1000

Required reserve ratio = 20 % = 0.2

We have to find the total increase in deposit

We know that total increase in deposit = \frac{intial\ deposit}{required\ reserve\ ratio}-initial\ deposit

So We know that total increase in deposit = \frac{1000}{0.2}-1000=$4000

So increase in initial deposit will be $4000

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Judy is a cash basis attorney. This year, she performed services in connection with the formation of a corporation and received
inn [45]

Answer:

Judy must recognize $4,000 of gross income from the stock for the current year.

True

Explanation:

When you receive stock in lieu of cash for payment for services rendered. you'll first owe income tax based on the value of the stock at that time.

5 0
2 years ago
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis o
Nimfa-mama [501]

Answer:

A. $26,100

B. $15,660

Explanation:

Calculation to determine Logan recognized gain

A. Based on the information given in a situation where  Johnathan's land is worth the amount of  $123,975, Logan's recognized gain will be the amount of $26,100 which is the lesser of the amount realized as  gain  ($156,600 realized amount − $130,500 adjusted basis = $26,100) or the fairmarket value of the boot received amount of  ($32,625)

Therefore Logan recognized gain will be $26,100

B. Based on the information given Ina situation were Johnathan's land is worth the amount of $140,940, Logan's recognized gain will be the amount of $15,660, the lesser of th amount realized as gain ($156,600 realized amount − $130,500 adjusted basis = $26,100) or the fairmarket value of the boot received of the amount of ($15,660).

Therefore Logan recognized gain will be $15,660

7 0
2 years ago
A depreciable asset has an estimated 15 percent salvage value. At the end of its estimated useful life, the accumulated deprecia
8090 [49]

Answer:

B

Explanation:

Depreciation is the uniform decrease in the value of an asset over a period until the salvage value is reached.

It is given by :

Annual depreciation expense = (cost of asset - salvage)÷ useful life of the asset

Therefore the accumulated depreciation would not equal the original cost of the asset at the end of its estimated useful life because the salvage value will be deducted from cost of asset under declining-Balance.

7 0
3 years ago
In considering ending her relationship with her husband, Marie considers how they might divide up their household goods, and how
iren [92.7K]

Answer:

D) investment

Explanation:

Marie has decided to end her relation with her husband and considering how she can divide the household goods, how the end of the relationship impacts her children. By considering all this point, Marie is thinking about the investment.

Interdependence theory state that interpersonal relationships depend upon interdependence.  it determine the how people interact each other and what will be the outcomes of their interaction.

6 0
3 years ago
Custom Engines Company has the following estimated costs for the upcoming​ year:
Lelechka [254]

Answer:

$22

Explanation:

The computation of the predetermined manufacturing overhead rate per hour is shown below:

= Total Factory overhead ÷ Estimated labor hours

where,

Total factory overhead is

= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment

= $37,000 + $22,300 + $5,600

= $64,900

And, the machine hours is 2.900

So, the predetermined overhead rate is

= $64,900 ÷ 2,900

= $22

This is the answer but the same is not given in the options

6 0
2 years ago
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