Answer and Explanation:
The computation of the reserve requirement is given below;
Required reserves is
= Deposits - loans - excess reserves
= $400 - $362 - $6
= 32 million
And,
Required reserve ratio is
= Required reserves ÷ Deposits
= 32 ÷ 400
= 8%
In this way, it should be determined so that the correct value & percentage could come
Answer:
First National Bank's EAR is 11.68%
First United Bank's EAR is 11.62%
Explanation:
Effective annual rate=(1+APR/m)^m-1
APR is the annual rates given in the question as 11.1% and 11.3%
m is the number of times in the year that compounding is done, for instance, it is 12 for monthly compounding and 2 for semiannual compounding
First National Bank's EAR=(1+11.1%/12)^12-1=11.68%
First United Bank's EAR=(1+11.3%/2)^2-1=11.62%
The EAR for First National Bank is higher
Answer:
the answer should be
a. Overhead can be applied slowly as a job is worked on.
Explanation:
The Journal entry is shown below:-
a. Salary Expense Dr, $2,550
To salaries payable $2,550
(Being accrual of salary is recorded)
b. Income summary Dr, $324,750
To Salary expense $324,750
($322,200 + $2,550)
(Being closing of salary expense is recorded)
Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
<em>Both countries result in an expected loss so company should not expand to either of them. </em>
