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2 years ago

Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.

Business

1 answer:

Archy [21]2 years ago

3 0

Answer:

not included

consumption

government spending

consumption

business spending

consumption and inventory (consumption increases and business inventory reduces)

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6. transfer payments

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Shackleford corporation net income this year is $800,000. The company generally retains 35% of net income for reinvestment. the

ZanzabumX [31]

Answer:

A. $22.61

Explanation:

First,

find the growth rate(g);

g = ROE *retention rate

retention rate = 35%

ROE = Net income/value of equity

ROE = 800,000/5,000,000 = 0.16

Therefore, g = 0.16*0.35

g =0.056 or 5.6%

Price = $\frac{D0(1+g)}{(r-g)}$

D0 = Recently paid dividend

g = growth rate

r = required return

Price = $\frac{1.37(1.056)}{0.12-0.056} \\ \\ =\frac{1.44672}{0.064} \\ \\ =22.605$

Therefore, the value of this stock is $22.61

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2 years ago

On April 1, 2013, Four Seasons Landscaping, LLC purchased new lawn mowers for $70,000 in cash (total cost). They have a useful l

creativ13 [48]

Answer:

Please see the calculation explanation below and the depreciation expense chart for all methods is attached.

Explanation:

1. STRAIGHT-LINE DEPRECIATION METHOD:

Depreciation Expense = (Total Cost - Residual Value) / Useful Life

Depreciation Expense = ($70,000 - $10,000) / 3 years

Depreciation Expense = $60,000 / 3 years

Depreciation Expense = $20,000 per year

2. DOUBLE DECLINING BALANCE DEPRECIATION METHOD:

Depreciation Expense Rate = (100% / Useful Life) x 2

Depreciation Expense Rate = (100% / 3) x 2

Depreciation Expense Rate = 66.67%

2013: 

Depreciation Expense = $70,000 x 66.67% = $46,667

2014: 

Depreciation Expense = ($70,000 - $46,667) x 66.67% = $15,556

Since the residual value is $10,000 and as per Double Declining Balance Method, the point at which Book Value is equal to the residual value, no depreciation is taken.

Depreciation Expense = (Total Cost - Residual Value) - (Accumulated Depreciation)

Depreciation Expense = ($70,000 - $10,000) - ($46,667)

Depreciation Expense = $13,333

2015: 

No Depreciation Expense for year 3, as Book value is already equal to residual value in year 2.

3. PER HOUR DEPRECIATION METHOD:

2013:

Depreciation Cost per hour = (Engine Hours in 2013 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (500 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $25,000

2014: 

Depreciation Cost per hour = (Engine Hours in 2014 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (400 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $20,000

2015: 

Depreciation Cost per hour = (Engine Hours in 2015 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (300 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $15,000

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2 years ago

Cominsky Company purchased a machine on July 1, 2021, for $28,000. Cominsky paid $200 in title fees and county property tax of $

sammy [17]

Answer:

Deprecation base=$26,300

Explanation:

Given Data:

Cost of machine=$28,000

Tax=$125

Fees=$200

Shipping charges=$500

Paid to contractor to build and wire a platform for the machine=$475

Salvage value=$3000

Useful life = 6 years

Required:

Depreciation base of Cominsky's new machine=?

Solution:

Deprecation base=Acquisition Cost-Salvage Value

Acquisition Cost:

It is the cost which involves the buying of asset and making the asset to work. In our case:

Acquisition Cost=Cost of machine+Tax+Fees+Shipping charges+Paid to contractor to build and wire a platform for the machine

Acquisition Cost=$28,000+$125+$200+$500+$475

Acquisition Cost=$29300

Deprecation base=Acquisition Cost-Salvage Value

Deprecation base=$29300-$3000

Deprecation base=$26,300

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3 years ago

How are random events taken into consideration during both hindsight bias and overconfidence?

Orlov [11]

The hindsight bias and overconfidence, plus our eagerness to perceive patterns in random events, can cause tendencies that may lead us to overestimate our intuition. Intuition and intellect are not always accurate, therefore these factors are not trustworthy compared to scientific facts or scientific inquiry which can help us overcome our intuition’s biases and shortcomings.

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3 years ago

Roger always purchased insurance for the 10 years he owned an expensive speedboat. Since he never had an accident, the premiums

miv72 [106K]

The answer base on the given scenario would be letter a, Roger would gain benefits as he was protected from a financial loss as this insurance covers him financially as the insurance of which premiums he has paid and were to gain would only make him the person of having to have the benefit as he is the one who has the insurance covered for him, which is entitled to his name and that the benefits and offers would be his gain.

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3 years ago