Because net is after costs are taken out of gross income
Answer: Please refer to the explanation section
Explanation:
The question is incomplete, the statement which we much choose from are not given in the question we will explain the question and provide a clear solution to make it easier for the student to single out a false statement.
Property acquisition was financed by two mortgage Bonds, First Mortgage Bond was $60 000 and the second mortgage bonds was $23 500. Ignoring interest rate we can assume that the Value of the Property is $83500 ($60 000 + $23 500).
Property was sold for $88000, There is a profit on sale of the property. Profit earned amounted to $4500 ($88000 - $83500). The profit on sale of property ($4500) will reported on the income statement. The property Value will be derecognized from long term assets in the the balance sheet statement.
The profits on sale of the property will form part of the net income for the year. Net income is distributed to shareholders in the form of dividends. We can therefore conclude that a portion of Profits on sale of property, if not all will be distributed to the share holders as dividends
Answer:
E. All of the above.
Explanation:
A) This has happened to other countries, e.g. over 100 years ago, the US owned a very large portion of British foreign debt and it was able to influence British policies. Until that time, the British had been the largest in the world.
B) When government sell bonds, it withdraws money form the economy and increases interest rates, which in the long run will lower capital stock and hurt the economy.
C) The higher the debt level, the higher the interest that must be paid. This also applies to everyone. Imagine if you do not owe any money, and if you need to loan you have several options where to choose from. But if you are over your head in debt, banks will stop lending you money and you will have to look to more expensive sources of credit.
