Complete Question:
One of the long-run effects of higher government budget deficits:
A. is growth in the economy's private sector at the same time the government sector shrinks.
B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.
D. an increase in the government's share of the nation's economic activity.
Answer:
D. an increase in the government's share of the nation's economic activity.
Explanation:
One of the long-run effects of higher government budget deficits is an increase in the government's share of the nation's economic activity because it would be mainly responsible for funding of the economy, thereby causing higher real Gross Domestic Product (GDP).
A government budget deficit arises when government expenses exceed it's revenue.
It usually expresses the financial health of a nation over a period of time.
Answer:
A) Prepare the revenues section of the income statement.
Lopez Company
Income Statement for the year ended MM DD, YY
Sales Revenue $852,850
-Sales Returns and Allowances $24,030
-Sales Discounts <u> $12,760 </u>
= Net Sales <u>$816,060</u>
B) Prepare separate closing entries for
(1) sales
Dr. Cr.
Sales $852,850
Income Summary $852,850
(2) the contra accounts to sales.
Dr. Cr.
Income Summary $36,736
Sales Returns and Allowances $24,030
Sales Discount $12,706
Answer: $129480
Explanation:
Based on the information given, the amount of their AMTI will be calculated as:
AGI = $99600
Add: Excess Depreciation on Real Estate = $59760
Less: Mortgage Interest Expenses = $19920
Less : Charitable Contribution = $9960
AMTI = $129480
Answer:
The answer is "4,750"
Explanation:
They have indeed been given the information that we require.
The current market cap for Simon Company (SIMON) is $300,000.
rate= 6%
EBIT=$150,000
The business has no plans to expand.
The current cost of capital is 8.8%,
The tax rate is 40%.
The company has 10,000 shares of common stock mostly on market.
The stock is being offered at a $90.00 per share price.
Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.
The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.
Remaining Shares= equity market value / per share price
The initial number of shares minus the resultant number of shares equals the number of repurchased shares:
AJC will buy back a certain number of shares.
