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Tju [1.3M]
3 years ago
9

Lower Equitorial and Upper Equitorial are the same except Lower Equitorial has a larger capital stock. Both countries undertake

policies that raise their saving rates to the same higher level. We would expect that :
both countries would have temporary increases in their growth rates, but the increase would be larger in Lower Equitorial.
both countries would have temporary increases in their growth rates, but the increase would be smaller in Lower Equitorial.
Business
1 answer:
loris [4]3 years ago
8 0

Answer:

both countries would have temporary increases in their growth rates, but the increase would be smaller in Lower Equitorial.

Explanation:

Capital Stock represents the plant, equipment, infraestructure and other assets that help with production

So a larger capital stock implies more factories, more equipment and assets in favor of Upper Equitorial.

The capital increase the productivity. so the growth rate will be smaller in lower equitorial

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On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

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As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

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