<span>Assets - equity = liabilities
So liability before the increase is:
300, 000 - 100, 000 = 200, 000
And if assets increases by 80, 000. Hence new assets = 380, 000. Liabilities increases by 50, 000; hence new liability = 250, 000.
New Equity = New Assets - New liability.
New Equity = 380, 000 - 250, 000 = 130, 000.</span>
Answer:
A. - The net public debt decreases
The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.
B. - The net public debt increases
The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.
C. - The net public debt remains unchanged
There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.
Answer:
So book value at the end of December will be $9676
Explanation:
We have given amount of the bond = $10000
Rate of interest = 8 %
So interest paid Interest paid = 10000×0.08 = 800
Issue price = $9611
Effective interest rate = 9 %
Interest expense = 9611×0.09= 865
Discount amortization = 865-800 = 65
Book value at the end of December 31,2019 = 9611+65 = 9676
