Explanation:
it makes it cheaper for banks to get money from the federal reserve
in return they can offer loans with less interest to customers such as those who buy homes
Answer:
$25,800 increase
Explanation:
The computation of the adjusted retained earning balance is shown below:
Ending inventory was overstated - no change
Add: Depreciation expense was overstated $24,100
Add: Ending inventory was understated $6,500
Less: Depreciation expense was understated ($4,800)
Adjusted retained earning balance $25,800
Answer:
$380,800
Explanation:
When an asset is sold, the cost and accumulated depreciation are derecognized from the books. Without the sale of an asset, the depreciation charge for the year would be the only difference between the closing accumulated depreciation from prior year to current year.
Change in accumulated depreciation
= $1253000 - $890000
= $363,000
Accumulated depreciation
= $74900 - $57100
= $17,800
Depreciation
= $363,000 + $17,800
= $380,800
Answer:
In that case, Patricia:
is still liable to pay the additional 10%.
Explanation:
The 10% price increase was preceded by an agreement between the two parties. Patricia is bound to honor her agreements with her business partner to sustain the business relationship. Refusing to pay a debt just by a change of mind does not repudiate the contract. Nancy can enforce the agreement in the court for specific performance of the contract because this additional agreement simply modifies the earlier contract and remains enforceable.
