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Oksanka [162]
3 years ago
15

An increase in consumer expenditures during the holiday season, a decrease in purchases of U.S. goods by foreigners, a tax incre

ase, and a decline in new home starts are examples of: Group of answer choices a monetary policy. an aggregate supply shock. an aggregate demand shock. expectations. Ricardian equivalence.
Business
1 answer:
Minchanka [31]3 years ago
6 0

Answer:

Option C (an aggregate demand shock) is the right solution.

Explanation:

  • Examples of such an overall demand shock are the same as the aforementioned, i.e. a rise throughout customer sales over the holiday season, a reduction in overseas imports of U.S. goods, a consumption tax, as well as a drop in new housing starts when they trigger a change in the AD curve.  
  • A transition exists in aggregate demand at that same specified price level.  

And therefore option C seems to be the right alternative,

You might be interested in
Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 per
Sergio039 [100]

Answer:

(a) $33750000 (b) $11250000 (c) $22500000

Explanation:

Solution

(a) How much would Ziegler Inc. total income of operating  increase.

Now,

Units * (Cost of purchased from outside supplier - Variable cost)

Thus,

75000 * ($1350 - $900) = $33750000

(b) How much would the Instrument Division's operating income increase

Now,

The Units * (Cost of purchased from outside supplier - Transfer Price)

So,

75000 units * ($1350 - $1200) = $11250000

(C) How much would the Components Division's operating income increase?

Now,

Units * (Transfer Price - Variable cost)

75000 units * ($1200 - $900) = $22500000

3 0
2 years ago
The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc
Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0
3 years ago
At December 31, 2019, Swifty Corporation reported the following as plant assets.
Kay [80]

Answer:

April 01 2020

Land                                                            Debit          $ 2,200,000

Cash                                                           Credit                             $2,200,000

To record purchase of land

May 01 2020

Cash                                                            Debit         $ 504,000

Allowance for depreciation equipment    Debit         $ 363,720

Equipment                                                   Credit                              $ 840,000

Gain on sale of equipment                         Credit                              $   27,720

To record sale of equipment and to recognise gain on sale

June 01 2020

Cash                                                              Debit      $ 1,450,000

Land                                                              Credit                            $ 399,000

Gain in sale of land                                      Credit                            $1,051,000

To record sale of land and gain on the sale

July 01 2020

Equipment                                                     Debit    $ 2,480,000

Cash                                                              Credit                         $ 2,480,000

To record purchase of equipment

December 31 2020

Allowance for depreciation                          Debit    $ 491,000

Equipment                                                      Credit                        $ 491,000

To record retirement of equipment

The adjusting entry for depreciation is as follows:

December 31 2020

Depreciation expense - Equipment             Debit  $ 4,985,000

Depreciation expense - Buildings                Debit  $   578,200

Allowance for depreciation - Equipment     Credit                     $ 4,985,000

Allowance for depreciation - Buildings        Credit                     $    578,200

Explanation:

Computation for Depreciation expense for the year

Equipment Jan 01 2020                        $ 48,670,000  for 4 months @ 10 %

Sales - May 01 2020                              <u>$(     840,000)</u>

Adjusted balance May 01 2020            $ 47,830,000 for 2 months @ 10 %

Purchases July 01 2020                        <u>$   2,480,000</u>

Adjusted balance July 01 2020            $  50,310,000 for 6 months @ 10 %

Depreciation expense for 4 months = $ 48,670,000*10 % *4/12 = $1,622,333

Depreciation expense for 2 months = $ 47,830,000*10 % *2/12 = $   797,167

Depreciation expense for 6 months = $ 51,310,000*10 % *6/12 =<u>$ 2,565,500</u>          

Total depreciation equipment                                                      $ 4,985,000

Depreciation on buildings     $ 28,910,000 * 2 %                       $     578,200

Depreciation has to be recorded for full year on assets retired on December 31 2020

Computation of gain and loss on sale of equipment

Cost of equipment  purchased on January 1 2016                       $ 840,000

Depreciation rate                                          10 %

Equipment sold on May 01 2020

Depreciation charged for 4 years and 3 months @ 10 %

$ 840,000 * 4.33 *10 %                                                                   <u>$  363,720</u>

Net book value of equipment disposed on May 01 2020            $ 476,280

Sale value of equipment                                                                  <u>$ 504,000</u>

Gain on sale of equipment                                                             $ (27,720 )                                  

The gain on sale of land is the difference between the cost and sales proceeds since land is not depreciated

Sale proceeds - Cost = $ 1,450,000 - $ 399,000 =                      $ 1,051,000

The assets that was retired on Dec 31 2020 was purchased on December 31 2010 and was considered for depreciation for 10 years and was fully depreciated and had ni book value on the date of retirement

6 0
2 years ago
Crystal corporation makes $2,000 payments every month for leasing office equipment. crystal recorded a lease payment as follows:
Svetlanka [38]
<span>Crystal corporation makes $2,000 payments every month for leasing office equipment. Crystal recorded a lease payment as an operating lease.

An operating lease is a lease that is commonly used for a short term basis and asset. The operating lease payment is found on the financial statement. 
</span>
4 0
2 years ago
On May 30, 2018, Jane purchased a factory building to use for her business. In August 2019, Jane paid $300,000 for improvements
PilotLPTM [1.2K]

Answer:

$2,889

Explanation:

We need to use the MACRS cost recovery schedule for business property (39 years) placed on service during the 8th month = 0.963%

Jane's total deduction = total cost of improvements x depreciation schedule = $300,000 x 0.963% = $2,889

Modified accelerated cost recovery system (MACRS) is the depreciation method established by the IRS to calculate tax deductions based on asset  depreciation.

3 0
3 years ago
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