I think it is D ...... sorry if it is wrong .-.
Answer: Option (A) is correct.
Explanation:
If the government wishes to increase the level of real GDP, it might reduce <u>Taxes.</u>
This is due to the fact that if government reduces the transfer payment, size of budget deficit or its purchases of goods and services then as a result the level of real GDP deceases because of lower aggregate demand for the product.
Now, if government reduces the taxes, this will increase the individual's disposable income. So, this will results in higher aggregate demand and hence, increases the level of real GDP.
Answer:
b. 3,249 units
Explanation:
Step 1. Given information.
Fix costs are 32.000
Depreciation expense 9.700
Contribution margin 9.85
Step 2. Formulas needed to solve the exercise.
Break even point = Fixed cost / contribution per unit
Step 3. Calculation.
Break even point= $32.000/$9.85= 3,248.73 rounded to 3,249
Step 4. Solution.
3.249 units is the minimum number of units to ensure its potential loss does not exceed the desired level
Option B is correct i.e. 3.249 units
The accounts affected are Ross company and rent account
Answer:
DR Inventory $609,000
Land $1,086,750
Buildings $2,138,250
Customer Relationships $842,250
Goodwill $965,750
CR Accounts Payable $102,000
Common Stock $56,400
Additional Paid-In Capital $1,353,600
Cash $4,130,000
Working
Common Stock = 28,200 shares * $2 = $56,400
Additional Paid in Cap = 28,200 shares * ( 50 - 2) = $1,353,600
DR Additional Paid-In Capital $32,400
CR Cash $32,400
DR Professional Services Expense $49,800
CR Cash $49,800
