BUSINESS COLLEGE

The Fed buys​ $20,000 of government securities. The desired reserve ratio is 5 percent and the currency drain is zero. What will be the change in the quantity of​ money?

Answers

Answer 1
Answer:

Answer:

The answer is $400,000

Explanation:

Quantity theory of money states that the quantity of money is directly proportional total spending in an economy.

Change in quantity of money = new deposits (which can also be new security) ÷ reserve requirements

The new security is $20,000

reserve requirements is 5 percent

Change in quantity of money is:

$20,000 / 0.05

=$400,000

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Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $85,800 Depreciation expense 12,500 Gain on sale of land 8,000 Increase in merchandise inventory 2,550 Increase in accounts payable 6,650a. $37,400.b. $13,150.c. $94,400.d. $14,150.e. $29,400.
Kevin invests $800 in an account that earns 5% simple interest. Jeremy invests $600 in an account earning 6%interest compounded annually. Who will have earned more interest after 3 years? How much more?A. Kevin will have earned $5.39 more than Jeremy after 3 years.B. Jeremy will have earned $5.39 more than Kevin after 3 years.C. Kevin will have earned $18.10 more than Jeremy after 3 years.D. Jeremy will have earned $18.10 more than Kevin after 3 years.
Provided $1,350 of piano lessons to students who paid in cash.Provided $1,060 of piano lessons on account.Collected $795 from students who took piano lessons during April.Paid April’s piano rental bill of $600.Received May’s piano rental bill of $650 and set it aside for payment in June. Assuming the company uses accrual basis accounting, what is net income for May?Multiple Choice
You are about to purchase a new car from a dealer who has a new and unusual payment plan. You have the choice to pay $29,000 cash today or $32,000 in 4 years. If you have the opportunity to borrow the cash price value of the car at a rate of 3.0% and repay the loan in a lump sum in 4 years, which option should you take and why? HTML Editor Keyboard Shortcuts
Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company’s stock is 12 percent, what will a share of stock sell for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $238,900 Actual manufacturing overhead cost $244,100 Estimated machine hours 20,000 Actual machine hours 23,000 The estimates were made as of the beginning of the​ year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been​ _____ .​ (Round intermediary calculations to the nearest cent and final answer to the nearest​ dollar.) A. $274,850. B. $238,900. C. $244,100. D. $212,261.

Answers

Answer:

Allocated MOH= $274,850

Explanation:

Giving the following information:

Estimated manufacturing overhead cost $238,900

Estimated machine hours 20,000

Actual machine hours 23,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 238,900/20,000

Predetermined manufacturing overhead rate= $11.945 per machine-hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 11.95*23,000

Allocated MOH= $274,850

Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $40,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $27,000.1. If Joe owns the rights to the river, which of the following is the most likely outcome?

a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.

2. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome?
a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.

Answers

If Joe owns the rights to the river will enforce his property rights and not allow Plastics to pollute and clean the pollution. Plastic is breaking his rights on the river

In this scenario Joe has benefit for 20,000

and Plastic losses for 12,000

2.- If Plastic own the rights to the river Joe will pay Plastics $15,000 to not pollute. This will make Plastic earn money for cleaning the river and Joe gain 5,000 incremental benefit

Explanation:

(A) Joe has legal claims, so It will used before any economic options

(B) Joe doesn't have legal claims, but It notices that a good offer make both parties win.

Plastic will receive 15,000 dollars to clean the river, which has cost of 12,000 realizing a net gain of 3,000

While Joe estimated a marginal benefit of 5,000 after paying to Plastic to clean the river, (20,000 benefit - 15,000 cost

First one is b

Second one is a

Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company’s current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)Pre-tax book income
Favorable temporary differences
Unfavorable temporary differences
Favorable permanent differences
Taxable income
Tax rate%

Answers

Answer:

The company’s current income tax expense or benefit is $350,880.

Explanation:

Pre-tax book income                                                             $ 1417500

Favorable temporary differences                                         -$300000

Unfavorable temporary differences                                      $106500

Favorable permanent differences                                         -$192000

Taxable income                                                                       $1032000

Current income tax expense ($1032000 x 34%)                    $350880

Therefore, The company’s current income tax expense or benefit is $350,880.

Sales to customers who use bank credit cards such as mastercard and visa are usually recorded by:a. Debit to Cash and a credit to Sales b. Debit to Cash, credit to Credit Card Expense, and a credit to Sales c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales d. Debit to Sales, debit to Credit Card Expense, and a credit to Cash

Answers

Answer:

c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales

Explanation:

The journal entry is shown below:

Bank credit card sales A/c Dr XXXXX

Credit card expense A/c Dr XXXXX

       To Sales A/c XXXXX

(Being the sales is recorded via bank credit cards)

As the credit card has some expense so we debited the credit card expense along with the bank credit card sales and credited the sales as it is revenue which is to be credited

Why don't consumers tend to get upset about tariffs?

Answers

Answer:

Tariffs are bans or taxes on stuff that gets imported and exported in and out of countries. This doesn't really affect consumers because they buy stuff and don't tend to notice. This does affect producers because they need supply to fill in the demand.

Note:

Hope this helps! Good Luck (^-^)

-kiniwih426

Answer:

Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods they are importing, they pass this increased cost onto consumers in the form of higher prices.

Explanation:

i dont know if this helps

How much would you need to deposit in an account now in order to have $3000 in the account in 15 years

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Future value= $3,000

Number of periods= 15 years

I will assume an interest rate of 8% compounded annually.

To calculate the present value (PV), we need to use the following formula:

PV= FV/(1+i)^n

PV= 3,000/1.08^15

PV= $945.73
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