Answer:
C. Loss of $800
Explanation:
Given that
Purchase price = 14400
Depreciation = 8000
Selling price = 5600
Thus,
Value of asset after depreciation = Purchase price - Depreciation
= 14400 - 8000
= 6400.
Therefore,
Difference between current value and price sold = value of asset after depreciation - selling price
= 6400 - 5600
= 800
Therefore, there was a loss of $800, since the selling price is less than the value of asset after depreciation.
Answer: decrease by $1,600
Explanation:
Charlotte withdraws $8,000 from her account. When she first paid in that $8,000, the bank had to keep some of it as a reserve requirement. That requirement was that they keep 20%.
Now that she is withdrawing the money, the bank would have to retrieve that 20% from the reserve requirement in order to give it back to Charlotte.
That 20% is:
= 20% * 8,000
= $1,600
Answer:
a
Explanation:
Automatic fiscal policies are policies that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Congress passes a law during a recession that automatically extends unemployment benefits for those whose benefits will soon expire. this is an example of discretionary fiscal policy
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Answer:
Please see explanation below.
Explanation:
Given the above, Accounts receivable is an asset. A debit in asset increases the asset. Also, crediting servicing revenue means an increase in equity because service revenue is also part of what makes an equity.
Therefore, debiting accounts receivables and crediting servicing revenue has increased both the assets and equity of Nikea inc.
