I did it on excel I’m going to show you what I have. If you can’t see it properly zoom in.
Answer:
D. An asset of the Federal Reserve Banks and a liability for the U.S. Treasury
Explanation:
For all demand deposits that banks receive, a percentage share must be deposited with Federal Reseve. This is called compulsory withdrawal and serves to ensure the solubility of the financial system.
For banks, this represents an asset as it is an amount they will have to receive when the Fed authorizes it. For the US Treasury, this represents a liability, which is a future payment obligation, as these amounts will be returned to banks in the future.
Answer:
If a company increases its final goods inventory level, that will increase the country's GDP even if the goods are not sold during the current period (they will be sold in future periods). Increases in inventory level are considered part of Investment component of the GDP.
If the inventories are not sold during the year (2018) and if they continue to be unsold during part of 2019, that will negatively affect the GDP because fewer goods will be purchased to replenish these inventories and the market price of the goods will also decrease. The market price of goods is determined by the supply and demand. If the supply is much higher than the demand and inventories start to pile up, their price will decrease in order to increase the quantity demanded. If the volume of the goods in inventory is significant enough, this should lower the inflation rate.
Answer:
The journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Explanation:
To prepare the journal entry to record the lease we would have to calculate the present value of lease payments as follows:
present value of lease payments=$195,774*15.32380=$3,000.000
Therefore, the journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.
First, we need to find the present value of the 30 million.
To do that we need to calculate the final value.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,000,000*[(1.06^10)-1]}/0.06= 39,542,385
PV= FV/(1+i)^n= 39,542,385/1.06^10= 22,080,261
B) Now we know that the present value of option B is higher. One dollar today is better than one dollar tomorrow. It is better to receive the money now to invest it.
