Answer: $650,000
Explanation:
Given that,
Fair and par value of issued bonds = $150,000
Prior acquisition, McGuire reported
Total assets = $500,000
Liabilities = $280,000
Stockholders’ equity = $220,000
At that date, Able reported
Total assets = $400,000
Liabilities = $250,000
Stockholders’ equity = $150,000
Account payable to McGuire = $20,000
Total assets reported by McGuire after acquisition:
= Total assets + Fair value of investment
= $500,000 + $150,000
= $650,000
Answer:
$2,320
Explanation:
the interest accrued by February 28, 20X5 = $10,000 x 12% = $1,200
since the interest compounds yearly, the interest accrued by December 31, 20X5 = ($11,200 x 12% x 10/12) + $1,200 = $1,120 + $1,200 = $2,320
Compound interest means that earned interest will earn more interest itself in the next period. That is why you need to include the previously accrued interest in the interest calculation for the second part.
Answer: Option (C) is correct.
Explanation:
Correct option: A coordination failure has occured.
When it was observed that most of the consumers and firms decreases their spending because they expect that some other consumers and firms decreases their consumption or spending and this will lead to a recession in an economy. So there is a coordination failure has occured.
Coordination failure is generally occurs when some of the firms can achieve a desirable equilibrium but unable to achieve it because they are not be able to coordinate with their decision making.
