Answer:
The answer is $61,000
Explanation:
An impairment loss is recognized when the carrying amount of an asset is less than its fair value(prevailing market price).
The difference between the carrying value and fair value is written off. Carrying amount is the cost of acquiring an asset minus any subsequent depreciation and impairment charges.
Impairment Loss = Book Value – Market Value
Impairment Loss = $177,500 - $116,500
Impairment loss is $61,000
Answer:
<em>The answer will be 136.11
</em>
Explanation:
Because since the cost of the basket in 2005 is = (3x20) + (4 x 12) = 108; And the cost of basket in 2006 is = (3x25) + (4 x 18) = 147
To calculate the CPI,
- <em>Put a sampling of product prices from a previous year. </em>
- <em>Then, put the current prices of the same items together. </em>
- <em>Divide the current total prices by the old prices and then subtract the sum by 100.</em>
The Consumer Price Index (CPI) for 2006 = <em>(147/108) x 100 = 136.11</em>
The available options
A. The self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower bound, and this increase depresses planned spending and further widens the output gap.
B. The self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease depresses saving and investment and therefore further widens the output gap.
C. The self-correcting mechanism stops working because the rising inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease depresses planned spending and further widens the output gap.
D. The self-correcting mechanism stops working because the rising inflation produced by a positive output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower bound, and this decrease enhances planned spending and further widens the output gap.
Answer:
A
Explanation:
For a given situation in the question above the correct answer is Option A, which is: The self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower bound, and this increase depresses planned spending and further widens the output gap.
Answer:
The account "Warranty Liability":
is adjusted at the end of the year
