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VLD [36.1K]
3 years ago
12

Your grandfather tells you that he earned​ $7,000/year in his first job in 1961. You earn​ $35,000/year in your first job in 201

8. You know that average prices have risen steadily since 1961. You earn A. less than 5 times as much as your grandfather in terms of real income. B. more than 5 times as much as your grandfather in terms of real income. C. less than 5 times as much as your grandfather in terms of nominal income. D. 5 times as much as your grandfather in terms of real income.
Business
1 answer:
Juli2301 [7.4K]3 years ago
4 0

Answer:

A. less than 5 times as much as your grandfather in terms of real income.

Explanation:

Nominal income is earning that does not take account of changes in price levels. Nominal income is the stated income. Real income considers the changes in inflation. Therefore, real income is nominal income after considering inflation effects.

If grandfather earned  $7000 per year in 1961, and myself $35,000 in 2018,  mathematically i earned five times more than him. The five times ($35,000/$7,000) is the stated amount without factoring in inflation. The difference between $35,000 and $7000 is the nominal difference because it is not adjusted for inflation. In we consider inflation, the real income is less than five times.

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On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $21,060 in cash and merchandise invent
tester [92]

Answer:

Explanation:

a. The journal entries are shown below:

Cash $21,060  

Merchandise inventory $56,290  

             To Eric Keene's Capital $77,350

(To record investment made)

Accounts receivable $17,770  

Equipment $54,190  

Cash (Liabilities - Assets) $40,820  

     To Allowance for doubtful accounts $1,950

     To Accounts payable $14,910

     To Notes payable (current) $35,970

    To Reene Wallace's capital $59,950

(Being capital contribution by Reene wallace is recorded)  

2.

<u>KEENE AND WALLACE </u>

<u> Balance Sheet </u>

<u> March 1, 20Y8</u>

Assets    

Current Assets    

Cash (21,060 + 40,820) $61,880  

Accounts Receivable Less Allowance $15,820  

Merchandise inventory $56,290  

Total current assets $133,990  

Property, plant and Equipment    

Equipment $54,190 54,190  

Total Assets   $188,180

Liabilities    

Current Liabilities    

Accounts Payable $14,910  

Notes Payable       $35,970  

Total liabilities       $50,880  

Partner's Equity    

Eric Keene's capital $77,350  

Renee Wallace's capital $59,950  

Total partner's equity  $137,300  

Total liabilities and partner's equity $188,180

7 0
2 years ago
In a local​ market, the monthly price of internet access service decreases from ​$40 to ​$30​, and the total quantity of monthly
deff fn [24]

The answer is : The demand is elastic.

Elasticity =

[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|

[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23

The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.

5 0
3 years ago
When mcdonald’s introduced its low-fat mclean deluxe hamburger, it used __________ to avoid direct competition with wendy’s and
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The appropriate response is differentiation positioning. Differentiation positioning includes looking for a less aggressive, littler market specialty in which to find a brand. Situating and separation are firmly related promoting methodologies. Situating is your procedure for passing on what makes your organization or items greater, diverse or superior to those offered by contenders.
8 0
3 years ago
Cash $ 8,600 Accounts receivable 16,500 Office supplies 2,000 Trucks 173,000 Accumulated depreciation—Trucks $ 35,638 Land 75,00
True [87]

Answer:

Net Income $23,588

Retained Earnings $140,088

Explanation:

To calculate the value of the retained earning at the end of the next year it's necessary to find the income of the current year and then deduct the dividends paid during the year, the remaining value adds to the retained earnings.

This value that we get of retained earnings at the end of the year, it's the value missing at the end of the year to explain the accounting equation of Assets = Liabilitites + Equity

Income Statement Blink

Trucking fees earned $ 135,000

Depreciation expenses -$ 22,987

Salaries expenses -$ 63,315

Office Supllies expenses -$ 13,500

Repair expenses -$ 11,610

Income $ 23,588

Retained Earnings Report  

Opening retained earnings $ 135,500

Add: Net Income $ 23,588

Subtotal $ 159,088

Less: Dividens -$ 19,000

Total $ 140,088

BALANCE SHEETS Dec 31

Cash  $ 8,600

Accounts Receivable  $ 16,500

Office Supplies  $ 2,000

TOTAL CURRENT ASSETS  $ 27,100

Equipment  $ 173,000

Accum Depreciation Truck  -$ 35,638

Land  $ 75,000

TOTAL NONCURRENT ASSETS  $ 212,362

TOTAL ASSETS  $ 239,462

Accounts Payable  $ 12,600

Interest Payable  $ 3,000

TOTAL CURRENT LIABILITIES  $ 15,600

Long Term Notes Payable  $ 52,000

TOTAL NONCURRENT LIABILITIES  $ 52,000

TOTAL LIABILITIES  $ 67,600

Common Stock  $ 31,774

<u>Retained Earnings  $ 140,088 </u>

TOTAL EQUITY  $ 171,862

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Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and
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You would get 20 basketballs at $30 and 30 basketballs at $20.
4 0
2 years ago
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