Answer:
$519,799.59
Explanation:
Discount rate = R = 14.50%
Year Cash flows Discount factor PV of cash flows
1 218,000.00 0.873362 190,393.0131
2 224,000.00 0.762762 170,858.6793
3 238,000.00 0.666168 <u>158,547.9011</u>
Total of PV = NPV = <u> $519,799.59</u>
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Note:
Df = 1/(1+R)^Year
PV of cash flows = Cash flows x Df
Answer:
Explanation:
Effect of crowding out:
The crowding out phenomena describes the economic phenomena in which an increase in government public spending leads to reduced or perhaps may eliminate of private investment.
Multiplier:
The multiplier represents the ratio of income to investment change.
Given that:
$13 billion increase in government spending will lead to a $52 billion
The rise in demand for goods & service will be the value of multiplier which is
= 52/13
= 4
To determine the multiplier using the formula:
Multiplier = 1 /( 1- MPC)
4 = 1/(1 - MPC)
4 (1 - MPC) = 1
(1- MPC) = 1/4
-MPC = 0.25 - 1
MPC = 0.75
Marginal propensity to consume = 0.75
Answer:
Given that,
Total prepaid insurance = $6,700
Monthly insurance:
= Total prepaid insurance ÷ 4 months
= $6,700 ÷ 4 months
= $1,675
Insurance expense for two months:
= $6,700 - $1,675
= $5,025
Therefore, the adjusting entry required on December 31 is as follows:
Insurance expense A/c Dr. $5,025
To Prepaid insurance $5,025
(To record the adjusting entry for the insurance)
Answer:
c. $500,000.
Explanation:
Market Corporation has a basis in the land of $500,000.
We are told in the question that ''Market Corporation completely liquidates Subsidiary Corporation, receiving land with a $400,000 adjusted basis and a $500,000 Fair Market Value''
In the event of liquidation the value of an asset is no longer its carrying amount or book value but rather the amount at which the asset can be disposed which is the fair market value.
Answer:
The owner's equity be as of December 31, 20Y7 is $705
Explanation:
In this question, we apply the accounting equation which is given below
Total assets = Total liabilities + shareholder's equity
The question has said that the liabilities are decreased and the assets are increased.
So, the new asset is = total assets + increased amount
= $1,000 + $130
= $1,130
And, So, the new liability is = total liabilities - decreased amount
= $450 - $25
= $425
So, the shareholder equity would be equal to
= $1,130 - $425
= $705
Hence, the owner's equity be as of December 31, 20Y7 is $705
