Answer:
c. The balance of mortgage payable will decrease each period the loan is outstanding.
Explanation:
Since in the question it is mentioned that the coporation has to pay the amount of $80,000 to bank for 10 years in order to reply the loan so according to the given options the option c should be selected as the part of the annual payment would be considered to the loan principal amount this increase for each and every period but at the same time the interest expense amount would be reduced in each and every period at the time when loan become outstanding
Answer:
d. recognition of realized gains or losses on sales
Explanation:
In the case of trading securities, the non-realized gain and losses should be recorded in the income statement. So at the time when securties are sold so here the realized gain are distinct as compared to the afs and htm securties
So as per the given situation, the option d is correct
And, the same should be considered
Answer:
False
Explanation:
Complement goods are goods that are consumed together.
If the price of good X increases, producers would increase their supply of good Y and X.
An increase in supply shifts the supply curve to the right.
I hope my answer helps you
Answer:
the equity beta of the firm is 1.134
Explanation:
The computation of the equity beta is shown below:
Equity beta is
= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]
= 0.9 × [1 + (1 - 0.35) × 0.4]
= 0 9 × 1.26
= 1.134
Hence, the equity beta of the firm is 1.134
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
0.8; 0.2; $360; 90%; 10%
Explanation:
Linear equation for consumption is as follows:
C = 40 + 0.8Y
suppose that income (Y) = $400
MPC = 0.8
Marginal propensity to save = 1 - Marginal propensity to consume
MPS = 1 - 0.8
= 0.2
C = 40 + 0.8Y
C = 40 + 0.8 × 400
= $360
Therefore, consumption is $360.
Average propensity to consume (
APC):
= Consumption ÷ Income level
= 360 ÷ 400
= 0.9
= 90%
We know that income is either consumed or saved, therefore,
Y = C + S
$400 = $360 + S
S = $40
Average propensity to save (
APS):
= Savings ÷ Income level
= 40 ÷ 400
= 0.1
= 10%
