Answer:
Suppose the production of a good results in positive externalities. The market will tend to <u>overproduce</u> this good and the good's marginal social benefits curve will <u>lie to the left of the good's demand curve.</u>
Explanation:
A positive production externality is the positive effect an activity imposes on an unrelated third party such as the positive effect production activity has on the market.
A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction. For example, education directly benefits the individual and also provides benefits to society as a whole through the provision of more responsible citizens.
To destory monopolies that were using their power to harm society.
<span>The American Federation of Labor is one of the largest labor unions in America. This union was responsible for crating the Committee for Industrial Unions. This committee was a cabinet-level agency that advocated for the interests of the American Federation of Labor</span>
Answer:
a.
January 1 Cash 720000 Dr
Discount on Bonds Payable 30000 Dr
Bonds Payable 750000 Cr
b.
January 1 Cash 772500 Dr
Bonds Payable 750000 Cr
Premium on Bonds Payable 22500 Cr
Explanation:
a.
When the bonds are issued at 96, this means that they are issued at 96% of the face value of the bond which is 750000 * 0.96 = 720000
So, the cash received from issuing the bonds is 720000. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the discount amount which will be debited.
b.
When the bonds are issued at 103, this means that they are issued at 103% of the face value of the bond which is 750000 * 1.03 = 772500
So, the cash received from issuing the bonds is 772500. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the premium amount which will be credited.
