Answer:
a. Negative equity.
Explanation:
Negative equity occurs when the market value of an asset being obtained through the loan is less than the amount that is on the loan balance.
For example if a car is being obtained for a loan amount of $1,200, and the market value of the car is $1,000. This is a situation of negative equity.
Negative equity can occur as a result of excessive interest payment as is seen in long term mortgages. When a customer is paying small amount on mortgage over 30 years the value of the house will most likely be lower than the total loan amount that will be paid.
Answer:
Retained earnings balance =$54,700
Explanation:
Retained earnings is the proportion of profit made by a company which is not distributed as dividend but rather re-couped to be re-invested. A payment of dividend would reduce the balance of retained earnings while further profit retained increases it.
The balance of retained earnings at the end = opening balance + profit retained for the year - dividend paid for the year
= 33,400 + 36,500 - 15,200 = $54,700
Retained earnings balance =$54,700
Answer:
12
Explanation:
Because of the fifty percent of
