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SIZIF [17.4K]
3 years ago
7

In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 millio

n on the consumption of goods and services. They have paid a total of $200.00 million in taxes, and the government has spent $150.00 million on goods and services this year. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy
Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer: $100 million

Explanation:

National Income (GDP) for a close nation is calculated as:

= Consumption + Investment + Government spending

Making investment the subject would give us:

Investment = GDP - Consumption - Government spending

= 400 - 150 - 150

= $100 million

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The following information describes the investment portfolio of Stevens, Incorporated. All of the securities were purchased on 3
Wewaii [24]

Answer:

a. 3/1/2019

Dr Investment in Tlet Inc $23,000

Dr Investment in Loxat Co $100,000

Dr Investment in Barnes Inc $46,000

Cr Cash $169,000

12/31/2019

Dr Fair value adjustment $41,000

Cr Unrealised holding gain or loss,Net $41,000

5/1/2020

Dr Cash $81,000

Cr Investment in Loxat Co $50,000

Cr Recognized gain on sale $31,000

12)31/2020

Dr Fair value adjustment $15,500

Cr Unrealised holding gain or loss,Net $15,500

b. Fair value adjustment $41,000

Fair value adjustment $15,500

Explanation:

a. Preparation of the Necessary Journal Entries for 2019 and 2020

3/1/2019

Dr Investment in Tlet Inc $23,000

Dr Investment in Loxat Co $100,000

Dr Investment in Barnes Inc $46,000

Cr Cash $169,000

12/31/2019

Dr Fair value adjustment $41,000

Cr Unrealised holding gain or loss,Net $41,000

($169,000-$210,000)

5/1/2020

Dr Cash $81,000

( $81 per share*1,000 shares)

Cr Investment in Loxat Co $50,000

[($100,000/2,000 shares=50 shares)

[($50*1,000 =$50,000)

Cr Recognized gain on sale $31,000

($81,000-$50,000)

12)31/2020

Dr Fair value adjustment $15,500

Cr Unrealised holding gain or loss,Net $15,500

[($119,000-$175,500)-$41,000]

($23,000+$50,000+$46,000=$119,000)

b.Calculation to Complete the fair value adjustment

A. Fair value adjustment =$169,000-$210,000

Fair value adjustment $41,000

B. Fair value adjustment=[($119,000-$175,500)-$41,000]

Fair value adjustment=$56,500-$41,000

Fair value adjustment= $15,500

Therefore the Fair value adjustment will be:

A. $41,000

B. $15,500

4 0
2 years ago
Josh purchased 100 shares of XOM at the beginning of 2016. He received dividends per share of​ $1.37 (2016),​ $1.55 (2017),​ $1.
Natalka [10]

Answer: 7.80%

Explanation:

At the end of 2016, Josh received a dividend of $1.37 and at the end of 2020, he received one of $1.85.

You can calculate the growth rate with the formula:

Dividend Growth Rate = (Dividend received at end of 2020/Dividend received at end of 2016) ^ (1/n) - 1

2016 to 2020 is 4 years.

Dividend growth rate = (1.85 / 1.37)¹/⁴ - 1

= 0.07798518

= 7.80%

8 0
3 years ago
Regal Health Plans issued a ten-year, 12 percent annual coupon bond a few years ago. The bond now sells for $1,100. The bond has
Mars2501 [29]

Answer:

The solution to the given problem is done in excel and an image of the solution is attached.

What is the bond's yield to maturity?

10.35%

What is the bond's yield to call?

10.13%

8 0
3 years ago
Read 2 more answers
Key West To Go, located in Key West, Florida, builds and sells scooters. These are sold to several local shops in the area, who
beks73 [17]

Answer:

d. 42.90 hours

Explanation:

y = aQᵇ

y = average time to produce one more unit

a = the time it took to produce the first unit

Q = cumulative production

b = learning rate = [(log learning rate in %) / log 2] = -0.152003093

learning rate in % = 10.8 / 12 = 0.9 = 90%

cumulative quantity             average hours per unit               total hours

1                                                    12                                               12

2                                                   10.8                                            22.8

3                                                   10.38                                          33.18

4                                                   12 x 4⁻⁰°¹⁵²⁰⁰³⁰⁹³ = 9.72            42.90

3 0
3 years ago
Arisk-neutral consumer is deciding whether to purchase a homogeneousproduct from one of two firms. One firm produces an unreliab
MatroZZZ [7]

Answer:

Uncertainty over Reliable and Unreliable Product

a. Given this uncertainty, the most this consumer will pay to purchase one unit of this product is $25

b. The amount that this consumer will be willing to pay for the product if the firm offering the reliable product includes a warranty that will protect the consumer is $50.

c. This is because the stated maximum amount that the consumer is willing to pay for the reliable product is $50.  She is not prepared to spend more than this amount on the reliable product.

Explanation:

a) Data and Calculations:

                                                                    Unreliable     Reliable

Maximum amount the consumer will pay      $0              $50

Probability of reliability                                    0.5              0.5

Expected amount to pay for either product  $0              $25 ($50 * 0.5)

a. Given this uncertainty, the most this consumer will pay to purchase one unit of this product is $25 ($0 + $25)

5 0
2 years ago
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