Answer:
E. $560,000
Explanation:
Balance of Long term Investment
= Value of Investment - Pre Acquisition Dividend ($100,000*40%) + Share of Net Income ($500,000*40%)
= $400,000 - $40,000 + $200,000
= $560,000
Therefore, The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be $560,000.
Risk tolerance gets lower and lower as you get closer to needing the money from your investment.
If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.
A National Debt is the amount of money obtained by one country from another that has not been paid. This can effect a country by means of loss of land actually owned, or it can cause agencies (e.g. Social Security Administration) to be cut on their budget. Meaning the agency to be cut of operational funding will loose a certain amount of funding until funds are found. Normally multiple agencies are cut to obtain some of the money to pay back the debt but this can really hurt agencies for reasoning of staffing as well as other operational costs. Hope this helps!
