Answer:
b. $103,345
Explanation:
Assets = Liabilities + Owner's Equity
Owner's Equity (Year 1) = $908,100 - $267,845
= $640,255
Owner's Equity (Year 2) = $980,279 - $233,892
= $746,387
increase in Owner's Equity = Owner's Equity (Year 2) - Owner's Equity (Year 1)
= $746,387 - $640,255
= $106,132
Net income during Year 2 = Increase in Owner's Equity - Additional investment + Withdrawals
= $106,132 - $28,658 + $25,871
= $103,345
Therefore, the amount of net income during Year 2 is $103.345.
Answer:
c. very little unsystematic risk.
Explanation:
The first option is wrong because a diversified portfolio can only lockout unsystematic risk which is due to a particular business sector and not the risk emanating from the whole market which is systematic in nature.
The second option is also wrong because systematic risk cannot be diversified away.
Answer:
$64,000 and $358,000
Explanation:
The computation is shown below:
For land:
= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building
= $60,000 + $2,000 + $5,000 - $3,000
= $64,000
For building:
= Construction cost of new building (fully completed) + Architects’ fees
= $350,000 + $8,000
=$358,000
Answer:
making loans to the government
Answer:
The correct answer is: an expansionary gap; decrease the money supply.
Explanation:
An expansionary gap is when genuine output surpasses potential output. At the end of the day, the economy is incidentally working over its long-run potential as estimated by real GDP.