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disa [49]
3 years ago
7

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 20X1, for $20,000 and 2,000 shares of Baker, Inc.

common stock on July 1, 20X1 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 20X1. At the end of 20X1, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company. Perry should record the receipt of the Baker dividend as
Business
1 answer:
maksim [4K]3 years ago
4 0

Answer:

Debit Cash $2,400: Credit Dividends receivable $2,400

Explanation:

Date               Account Titles and Explanation     Debit    Credit

31 Dec 20X1   Cash                                                $2,400

                               Dividend receivables                            $2,400

                       (Record of the receipt of the Baker dividend)

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3 years ago
Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government
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The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = (  value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2)  = 0

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2 years ago
When people seek information to support their point of view and discount data that do not, they are subject to ______ bias. For
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Answer:

Confirmation bias.

Explanation:

Confirmation bias is defined as the tendency for an individual to recall and favour information that confirms one's previous beliefs or hypothesis. It is a form of cognitive bias.

In the given example Joe only accepted information that would confirm his belief that there are fewer cars on the road (that is his commute is now shorter).

He however rejected the information that he now works the night shift, a period when traffic is low.

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2 years ago
Why might working on a commission basis make dealing with finances more difficult?
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suppose that a perfectly competitive firms marginal revenue equals $12 when it sells 10 units of output. if the marginal cost of
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To Maximize the Profit the Firm should Decrease its production.

<h3><u>What are perfectly competitive firms?</u></h3>
  • A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
  • Agricultural markets are examples of nearly perfect competition as well. Imagine shopping at your local farmers' market: there are numerous farmers, selling the same fruits, vegetables and herbs. You can easily find out the prices for the goods, but they are usually all about the same.

The three primary characteristics of perfect competition are

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