Answer:
$200,000,000
Explanation:
Given that:
Amount of securities purchased = $10 million
Desired reserve ratio = 0.05
The bank's excess reserve :
Money multiplier * amount of securities purchased
Money multiplier = 1 / reserve ratio
Money multiplier = 1 / 0.05 = 20
Excess reserve = 20 * $10,000,000
Excess reserve = $200,000,000
False, ethical standards are important and should guide decisions in every aspect of life and business.
Answer:
The correct answer is A.
All other things being equal, in the early years of the asset's life, the amount of income shown <u>on the tax return will be higher than the amount of income shown on the income state.</u>
Here's why
Explanation:
In the United States, the Modified Accelerated Cost Recovery System (MACRS) is a depreciation system used for tax purposes.
It allows the capitalized cost of an asset to be recovered over a specified period via annual deductions. The MACRS system puts fixed assets into classes that have set depreciation periods.
This depreciation system allows an asset to be depreciated faster in the first years of an asset's life and slows depreciation later on. This is beneficial to businesses from a tax perspective.
This is logical, the less the value of an assets, the less the property tax applicable to it and so the company increases it's bottom line in tax savings whiles maximizing the useful life of the asset.
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