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2 years ago

What is fiscal policy

1 answer:

6 0

Fiscal policy is the use of government revenue collection and expenditure to influence a country's economy.

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Sunland Company issued its 9%, 25-year mortgage bonds in the principal amount of $2,990,000 on January 2, 2006, at a discount of

sveticcg [70]

Answer:

Cash 2,839,000 debit

discount on BP 151,000 debit

Bonds Payabl*e 2,990,000 credit

--to record bonds issuance--

interest expense 275,140 debit

discount on BP 6,040 credit

cash 269,100 credit

--to record interest payment--

Explanation:

We will cacualte the cash outlay per interest paymenr

2,990,000 x 9% = 269,100 cash outlay

Then, we divide the discount over the life of the bond to knwo the depreciation:

amortization 151,000 / 25 = 6040

interest expense: 269,100 + 6040 = 275,140

As both, the amortization and cash putlay are fixed th interest entry repeats it selft each year.

4 0

3 years ago

Based on the following data for the current year, what is the inventory turnover? Sales on account during year $700,000 Cost of

Elodia [21]

Answer:

2.7

Explanation:

The inventory turnover is defined as the ratio between the cost of merchandise sold during the year and the average inventory.

Average inventory can be defined as the mean between initial and ending inventory. The inventory turnover is:

$IT=\frac{\$270,000}{\frac{\$110,000+\$90,000}{2} } \\IT=2.7$

The inventory turnover ratio is 2.7.

3 0

3 years ago

When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation

erastovalidia [21]

Answer:

the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.

Explanation:

Let me use an example to illustrate this.

An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0

If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250

The net book value halfway through its useful life = $1000 - ($250 x 2) = $500

If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500

The net book value at the beginning of year 2 = $1000 - $500 = $500

Depreciation expense in year 2 = 2/4 x $500 = $250

The net book value at the beginning of year 3 = $500 - $250 = $250

We can see that the net book value halfway through the useful is lower when double declining depreciation method is used

4 0

3 years ago

Antonio has been learning to draw landscapes. It has been hard at times but he is happy about the progress he has made. What is

Diano4ka-milaya [45]

The answer to your question is going to be challenge

6 0

2 years ago

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the

LenKa [72]

Answer:

$133.33

Explanation:

Calculation for The intrinsic value of the stock

Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04

Intrinsic value of the stock = 8/[.04 − (−.02)]

Intrinsic value of the stock = 8/.06

Intrinsic value of the stock = $133.33

Therefore the intrinsic value of the stock is $133.33

8 0

2 years ago

What is fiscal policy​

What is fiscal policy