<span>income that investors earn from buying and selling investments
</span>
Her purchasing power over the year remains the same.
Since the prices (inflation) rise with the same pace as the value of the money (interest rate), Beth can keep buying the same amount of products. Her purchasing power remains equal.
Available Options are:
A. Investors' allowable investment depends on the accredited or non-accredited status.
B. Investors may invest a combined $50 million within a 12-month period.
C. Investors may invest no more than $1 million combined for the first year of the business.
Answer:
Option C. Investors may invest no more than $1 million combined for the first year of the business.
Explanation:
The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:
1. $2000
2. Or the lesser of (If the net worth of Wendy is less than $100,000)
- 5% of its total income for the year
- Net worth
There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.
Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.
This means the non-accredited investor can not invest more than $1 million.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $10,400
To Sales $10,000
To Sales taxes payable $400
(Being the cash is recorded)
Here we debited the cash as it increased the assets and we credited the sales and sales tax payable as it increased the sales and the liabilities
2. Cost of goods sold Dr, $5,000
To Merchandise inventory $5,000
(Being cost of goods sold is recorded)
Here we debited the cost of goods sold as it increased the expenses and we credited the merchandise inventory as it reduced the assets
3. Unearned services revenue Dr, $50,000
To Earned services revenue $50,000
(Being unearned service revenue is recorded)
Here we debited the unearned service revenue as it decreased the liabilities and we credited the earned service revenue as it increased the revenue
D. because you Have Caps on all, a symbol, A lower case, and a number
