Caldwell Mining Co. acquired mineral rights for $48,750,000. The mineral deposit is estimated at 65,000,000 tons. During the current year, 19,500,000 tons were mined and sold.

A. Determine the depletion rate.B. Determine the amount of depletion expense for the current year.C. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer 1

Answer:

A. $0.75 per ton

B. $14,625,000

C. Journal Entry :

Depletion Expense : mineral rights $14,625,000 (debit)

Accumulated Depletion :  mineral rights $14,625,000 (credit)

Explanation:

Depletion Rate = Cost of Asset ÷ Expected Total Contents in Units

                         =  $48,750,000 ÷ 65,000,000 tons

                         =  $0.75 per ton

Current year depletion expense = Depletion Rate × Number of Units during the period

                                                      =  $0.75 × 19,500,000 tons

                                                      =  $14,625,000

Journal Entry :

Depletion Expense : mineral rights $14,625,000 (debit)

Accumulated Depletion :  mineral rights $14,625,000 (credit)


Related Questions

A financial asset is liquid: Group of answer choices if it can be readily exchanged for another asset or good. if it is held by the public and earning interest. only if it takes the form of cash. if it can be carried easily from one place to another.

Answers

Answer:

if it can be readily exchanged for another asset or good

Explanation:

An asset is liquid if it can be easily be exchanged for another asset or good or converted to cash. cash ( currency)  is the most liquid asset.

an house for example is less liquid when compared to cash. this is because before it can be converted to cash or exchanged for another asset, it must first be valued, then we have to find a buyer and this process can range from days to years. this makes a house less liquid when compared with a house.

Italian Stallion has the following transactions during the year related to stockholders' equity.
February 1 Issues 4,100 shares of no-par common stock for $16 per share.
May 15 Issues 200 shares of $10 par value, 3% preferred stock for $13 per share.
October 1 Declares a cash dividend of $0.30 per share to all stockholders of record (both common and pre
October 15 October 15 Date of record.
October 31 Pays the cash dividend declared on October 1.
Required: Record each of these transactions.

Answers

Answer:

February 1 Issues 4,100 shares of no-par common stock for $16 per share.

Dr Cash 65,600

    Cr Common stock 65,600

May 15 Issues 200 shares of $10 par value, 3% preferred stock for $13 per share.

Dr Cash 2,600

    Cr Preferred stock 2,000

    Cr Additional paid in capital - preferred stock 600

October 1 Declares a cash dividend of $0.30 per share to all stockholders of record

Dr Retained earnings 1,290

    Cr Preferred stock dividends payable 60

    Cr Common stock dividends payable 1,230

October 15 October 15 Date of record.

No journal entry required.

October 31 Pays the cash dividend declared on October 1.

Dr Preferred stock dividends payable 60

Dr Common stock dividends payable 1,230

    Cr Cash 1,290

Suppose that purely competitive firms producing cashews discover that P exceeds MC.
a. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency?
b. In the long run, what will happen to the supply of cashews and the price of cashews?
1. Supply will increase and the price of cashews will increase.
2. Supply will increase and the price of cashews will decrease.
3. Supply will decrease and the price of cashews will decrease.
4. Supply will decrease and the price of cashews will increase.

Answers

Answer:

a. Too Little

b. 2. Supply will increase and the price of cashews will decrease.

Explanation:

a. Output is always maximised when Marginal Revenue equals Marginal Cost because at this point it is argued that all resources are being utilised. In a purely competitive market, the Price is equal to the Marginal Revenue. If the price is larger than the Marginal Cost that means that Marginal Revenue is larger than Marginal Cost. The firms are therefore not utilising enough resources to produce as much as they can which should change.

b. In the long run in a purely competitive market, more firms will enter the market as they will see it as a chance to make economic profits. As this happens the Supply will increase due to the larger number of firms and the price will decrease as a result as well.

On January 1, 2012 Johnson Company issued bonds with a face value of $750,000. The bonds carry an interest rate of 8% payable each January 1.

Required:
a. Prepare the journal entry for the issuance assuming the bonds are issued at 96.
b. Prepare the journal entry for the issuance assuming the bonds are issued at 103.

Answers

Answer:

a.

January 1    Cash                                          720000 Dr

                   Discount on Bonds Payable    30000 Dr

                            Bonds Payable                        750000 Cr

b.

January 1    Cash                                          772500 Dr

                             Bonds Payable                        750000 Cr

                             Premium on Bonds Payable  22500 Cr

Explanation:

a.

When the bonds are issued at 96, this means that they are issued at 96% of the face value of the bond which is 750000 * 0.96 = 720000

So, the cash received from issuing the bonds is 720000. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the discount amount which will be debited.

b.

When the bonds are issued at 103, this means that they are issued at 103% of the face value of the bond which is 750000 * 1.03 = 772500

So, the cash received from issuing the bonds is 772500. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the premium amount which will be credited.

The CEO of Jamil Circuits is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry.He has pointed out a number of disadvantages to this mode.However,the CFO of the company is not sure if all of the disadvantages that the CEO is noting are correct.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?
A) lack of control over quality
B) high costs and risks
C) problems with local marketing agents
D) inability to engage in global strategic coordination
E) lack of control over technology

Answers

Answer: high cost and risk

Explanation:

From the question, we are informed that the CEO of Jamil Circuits is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry and that hee has pointed out a number of disadvantages to this mode.

A disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets is high costs and risks. A lot of risk is involved which may hinder the success of the business.

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 100,000 units, 80% complete as to materials and 25% complete as to conversion. Units started and completed: 290,000. Units completed and transferred out: 390,000. Ending Inventory: 40,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $57,200. Costs in beginning Work in Process - Conversion: $99,700. Costs incurred in October - Direct Materials: $828,520. Costs incurred in October - Conversion: $939,300. Calculate the cost per equivalent unit of materials.

Answers

Answer:

$2.64 per units

Explanation:

The computation of the cost per equivalent unit of material is shown below:

Cost per equivalent unit is

= (Beginning conversion cost + cost incurred during October) ÷ (Total equivalent units)

= ($99,700 + $939,300) ÷ (390,000 units  + (40,000 units × 10%))

= $1,039,000 ÷ 394,000 units

= $2.64 per units

We simply applied the above formula

What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance account is dollar 7, 750 before adjustment, and the unexpired amount per analysis of policies is. dollar 3, 250?
A. Debit Insurance Expense, dollar 3, 250; credit Prepaid Insurance. dollar 3, 250.
B. Debit Prepaid Insurance; dollar 4, 500; credit Insurance Expense, dollar 4, 500.
C. Debit Insurance Expense, dollar 4, 500; credit Prepaid Insurance, dollar 4, 500.
D. Debit Insurance Expense, dollar 7, 750; credit Prepaid Insurance, dollar 7, 750.
E. Debit Cash, dollar 7, 750; Credit Prepaid Insurance, dollar 7, 750.

Answers

Answer:

C. Debit Insurance Expense, dollar 4, 500; Credit Prepaid Insurance, dollar 4, 500

Explanation:

Date       Account Title                  Debit              Credit

Dec 31   Insurance expense         $4,500

              Prepaid insurance                               $4,500

              ($7,750-3,250)

Option C is correct.

​Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units is​ 7,000 and budgeted sales in units is​ 8,000. What is the margin of safety in​ dollars?

Answers

Answer:

$12,000

Explanation:

Margin of safety = Current sales level - Break even point

=(8,000 ×12) - (7,000 × 12)

= 96,000 - 84,000

= $12,000

produces sports socks. The company has fixed expenses of $ 80 comma 000 and variable expenses of $ 0.80 per package. Each package sells for $ 1.60. Read the requirementsLOADING.... Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. ​(Enter the amount to the nearest​ cent.)

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Unitary variable expenses= $ 0.80

Selling price per unit= $ 1.60

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= selling price - unitary variable cost

Unitary contribution margin= 1.6 - 0.8

Unitary contribution margin= $0.8

Now, the contribution margin ratio:

contribution margin ratio= contribution margin / sellig price

contribution margin ratio= 0.8/1.6

contribution margin ratio= 0.5

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to

Answers

Answer:

$53,700

Explanation:

Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced

=($5.20 + $3.75) * 6,000 units

=$8.95 * 6,000

=$53,700

The total amount of direct manufacturing cost incurred is closest to $53,700

On January 1, an investment account is worth 300,000. M months later, the value has increased to 315,000 and 15,000 is withdrawn. 2M months prior to the end of the year, the account is again worth 315,000 and 15,000 is withdrawn. On December 31, the account is worth 315,000. The annual effective yield rate, using the dollar-weighted method, is 16%. Calculate M.

Answers

Answer:

M = 3

Explanation:

The first withdrawal takes place 1 - M/12 months until the end of the year. The second withdrawal takes place 2M/12 months before the end of the year.

$315,000 = ($300,000 x 1.16) - {$15,000 x [1 + 0.16(1 - M/12)]} - {$15,000 x [1 + 0.16(2M/12)]}

$315,000 = $348,000 - [$15,000 x (1.16 - 0.16M/12)] - [$15,000 x (1 + 0.32M/12)]

$315,000 = $348,000 - $17,400+ 200M - $15,000 - 400M

$315,000 = $315,600 - 200M

200M = $315,600 - $315,000 = $600

M = 600 / 200 = 3

Classify the assumptions according to whether or not each item is an assumption made under perfect competition (also known as pure competition or competitive industry).
Assumed in perfect competition Not assumed in perfect competition
a. price-taking behavior
b. a small number of producers
c. firms selling a similar but differentiated good
d. significant barriers to entry

Answers

Answer:

Option “A” is the assumption of perfect competition while options B, C, and D are not the assumption of perfect competition.

Explanation:

Option A, is the assumption of perfect competition because, in the perfect competition, the industry decides the price with the help of market forces demand and supply. Moreover, this determined price is followed by firms in the industry. While the other options are not assumed in perfect competition because there are a large number of firms that can be seen in perfect competition and these firms sell homogeneous goods. Furthermore, the firms are free to enter and exit the market.

The following assumption are made under perfect competition:

price-taking behavior

The following assumption are not made under perfect competition:

small number of producers firms selling a similar but differentiated good significant barriers to entry

Perfect competition is a market where there are many buyers and sellers of homogenous goods and services. There are no barriers to the entry or exit of firms into the market. An example of perfect competition is the market for apples. All apples are identical and there are many farmers who sell apples.

The market price of goods in a perfect competition is set by the market forces. So, buyers and sellers are price takers. They take the price as determined by the market forces. There is perfect information in a perfect competition.

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[The following information applies to the questions displayed below.] Michicot Co. sold a scanner/copier costing $7,500 with a two-year parts warranty to a customer on August 16, 2013, for $15,000 cash. Michicot uses the perpetual inventory system. On November 22, 2014, the scanner/copier requires on-site repairs that are completed the same day. The repairs cost $95 for materials taken from the Repair Parts Inventory. These are the only repairs required in 2014 for this scanner/copier. Based on experience, Michicot expects to incur warranty costs equal to 3% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. 1. How much warranty expense does the company report in 2013 for this copier?

Answers

Answer:

Michicot Co.

The warranty expense to recognize in 2013 is $450

The journal entry will be:

December 31, 2013:

Debit Warranty Expense $450

Credit Warranty Liability $450

To accrue the warranty expense for the scanner/copier sold.

Explanation:

a) Data:

August 16, 2013: Sales of scanner/copier = $15,000

Cost of scanner/copier = $7,500

Two-year warranty = 3% of $15,000 = $450

Perpetual inventory system in use

November 22, 2014 on-site repairs' cost = $95

Warranty expires August 15, 2015

b) Warranty expense relates to 2013, therefore, a warranty expense is recognized in 2013 with a Warranty Liability is made for the sum of $450 (3% of $15,000).  When the actual liability claim for this customer is received in 2014 for the sum of $95, the Warranty Liability will be credited and Inventory account adjusted with $95.

c) Recognizing the 3% of $15,000 ensures that the accrual concept and the matching principle are followed.  The revenue for this warranty relates to 2013 and the expense is also supposed to relate to 2013.

The profit leverage effect (ratio) is calculated by A. dividing 1.0 by the profit margin. B. dividing pretax earnings by the cost of goods sold. C. dividing sales by the cost of goods sold. D. none of the above

Answers

Answer:

D. none of the above

Explanation:

The profit leverage effect shows that in order to increase net profits, it is better and more efficient to reduce operating expenses rather than increasing total net sales revenue. I.e. a $1 decrease in costs increases operating profits by $1, which is much more than the increase resulting from increasing sales by $1.

What's the answer to this question?​

Answers

the answer is c i’m pretty sure

RPJ co has net income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total assets of $52,800, and total debt of $24,300. Assets, current liabilities, and costs are proportional to sales. The company maintains a constant dividend payout ratio and debt-equity ratio and is operating at full capacity. What is the maximum dollar Increase In sales that can be sustalned next year assuming no new equity is Issued?
a. $2151.
b. $1,211.
c. $2.804.
d. $2.267.
e. $1,667.

Answers

Answer:

d. $2.267.

Explanation:

We have to calculate first sustainable growth rate

For sustainable growth rate, we need ROE & Retention Ratio

Total Assets          52,800

Less: Total debt    24,300

Total Equity           28,500

ROE= Net income / Equity

ROE= 2937 / 28500 * 100

ROE= 10.305%

Retention Ratio = 45 %

Hence, Sustainable Growth Rate = (ROE * b) / (1-ROE*b)

Sustainable Growth Rate = (10.31% * 0.45)/(1-{10.31% * 0.45})

Sustainable Growth Rate = 4.863%

Profit Margin = Net Income / Sales * 100

6.3 = 2,937 / Sales * 100

Sales = $46,619

Therefore Maximum dollar increase in sales = Sales * Sustainable growth rate

= $46,619 * (4.863%)

= $2,267.08

Therefore, Maximum dollar increase = $2267.08

On March 31, year 1, Ashley, Inc.'s bondholders exchanged their convertible bonds for common stock. The carrying amount of these bonds on Ashley's books was less than the market value but greater than the par value of the common stock issued.If Ashley used the book value method of accounting for the conversion, which of the following statements is correct for an effect of this conversion?
A. Stockholders' equity is increased.
B. Additional paid-in capital is decreased.
C. Retained earnings is increased.
D. A loss is recognized

Answers

Answer:

A. Stockholders' equity is increased.

Explanation:

In this scenario, the correct statement for an effect of this conversion would be that the Sockholders' equity is increased. In such a situation, a sockholders' equity will always increase since debt is being converted into equity. This applies regardless of the method that was used for accounting the conversion of bonds. While retained earnings would not move at all in a conversion of bonds, and a gain or loss on such a debt would only be recognized under the market value approach.

In each part that follows, use the economic data given to find national saving, private saving, public saving, and the national saving rate.

a.
Household saving 200
Business saving 400
Government purchases of goods and services 160
Government transfers and interest payments 110
Tax collections 195
GDP 2500


b.
GDP 6,150
Tax collections 1,425
Government transfers and interest payments 400
Consumption expenditures 4,520
Government budget surplus 100

c.
Consumption expenditures 4,300
Investment 1,000
Government purchases 1,000
Net exports 6
Tax collections 1,575
Government transfers and interest payments 500

Answers

Answer:

a.  Public saving = Tax collections - Government purchases - Transfers and interest payments

=195 - 160 - 110

= -75

Private saving = Household saving + business saving

= 200 + 400

= 600

National saving = Private saving + public saving  

= 600-75

= 525

National saving rate = National saving/GDP

= 525/2500

=0.21

= 21%

b. Private sector disposable income = GDP - Taxes + Transfers

= 6150 - 1425 + 400

= 5125

Private sector savings = Disposable income - consumption

= 5125 - 4520

= 605

Public savings = Govt budget surplus = 100

National savings = Private savings + Govt savings

= 605 + 100

= 705

National savings rate = National savings / GDP

= 705 / 6,150

= 0.1146

=11.46%

c. GDP = Consumption + investment + Government purchase + Net Export

= 4,300 + 1,000 + 1,000 + 6

= 6,306

Govt savings = Taxes - Transfers - Govt purchases

= 1,575 - 500 - 1,000

= 75

Private sector disposable income = GDP - Taxes + Transfers

= 6,306 - 1,575 + 500

= 5,231

Private sector savings = Disposable income - consumption

= 5,231 - 4,300

= 931

National savings = Private savings + Government savings

= 931 + 75

= 1,006

National savings rate = National savings / GDP

= 1,006 / 6,306

=0.1595

= 15.95%

A. Public saving =-75, Private saving, National saving= 525, National saving rate=21% B. Private sector disposable income=5125,C. GDP= 6,306, Govt savings=75

Calculation of Gross domestic product

A.  Public saving is = Tax collections - Government purchases - Transfers and also interest payments

Then =195 - 160 - 110

= -75

After that Private saving is = Household saving + business saving

= 200 + 400

Thus, = 600

Then National saving is = Private saving + public saving  

= 600-75

Therefore, = 525

After that National saving rate = National saving/GDP

= 525/2500

=0.21

Thus, = 21%

B. Private sector disposable income is = GDP - Taxes + Transfers

= 6150 - 1425 + 400

= 5125

After that Private sector savings = Disposable income - consumption

= 5125 - 4520

= 605

Then Public savings = Govt budget surplus = 100

National savings = Private savings + Govt savings

= 605 + 100

= 705

Now, National savings rate = National savings / GDP

= 705 / 6,150

= 0.1146

=11.46%

C. GDP is = Consumption + investment + Government purchase + Net Export

Then = 4,300 + 1,000 + 1,000 + 6

= 6,306

After that Govt savings = Taxes - Transfers - Govt purchases

= 1,575 - 500 - 1,000

= 75

Now, Private sector disposable income = GDP - Taxes + Transfers

= 6,306 - 1,575 + 500

= 5,231

Then Private sector savings = Disposable income - consumption

= 5,231 - 4,300

= 931

Now, National savings = Private savings + Government savings

= 931 + 75

= 1,006

Then National savings rate = National savings / GDP

= 1,006 / 6,306

=0.1595

Therefore, = 15.95%

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Import tariffs generally ________ the output of domestic producers of the affected products and also _________ the output of domestic exporters.

Answers

Answer:

increase , decrease

Explanation:

Import tariffs are amount levied on the imports of goods. tariffs makes imports more expensive and discourages import.

if an import tariff is in place for a particular good, the import of that good would reduce and this would increase domestic producers to produce more of the good to meet the demand of the good. so output of domestic producers would increase.

Because output is consumed domestically, exports would reduce.

The goal of collaborative planning, forecasting, and replenishment (CPFR) is to improve operational efficiency and manage inventory.

a. True
b. False

Answers

Answer:

Option "a" = true.

Explanation:

"The goal of collaborative planning, forecasting, and replenishment (CPFR) is to improve operational efficiency and manage inventory"

The statement given above is right or CORRECT and TRUE(option a).

The concept of "Collaborative Planning, Forecasting and Replenishment" was first brought into limelight in the year 1995. Collaborative Planning, Forecasting & Replenishment make sure that a terminology or say a concept in commerce which is know as "Integration of supply chain" is improving greatly.

The collaborative planning, forecasting, and replenishment (CPFR) helps to improve operational efficiency by reducing costs such as that of logistics, transportation and many more.

A parent company exchanges 5,000 shares of its $2 par value common stock, with a market value of $10/share, for all of the shares owned by the subsidiary's shareholders, resulting in a $50,000 total purchase price. On the acquisition date, the subsidiary reported a book value of Stockholders' Equity of $37,500, comprised of $15,000 of Common Stock and $22,500 of Retained Earnings. An examination of the subsidiary's balance sheet revealed that book values were equal to fair values for all assets except for PPE (net), which has a book value of $20,000 and a fair value of $32,500.
a. Prepare the entry that the parent makes to record the investment.
b. Prepare the [E] and [A] consolidation entries.

Answers

Answer:

a. The entry that the parent makes to record the investment

Investment in Subsidiary $50,000 (debit)

Common Stocks $50,000 (credit)

b. Consolidation Entries

Common Stock (Subsidiary) $15,000 (debit)

Retained Earnings (Subsidiary) $35,000 (debit)

Investment in Subsidiary $50,000 (credit)

Explanation:

The entry that the parent makes to record the investment

Investment in Subsidiary $50,000 (debit)

Common Stocks $50,000 (credit)

Recognize the Investment in Subsidiary and recognize the Equity element : Common Stocks

Consolidation Entries

Common Stock (Subsidiary) $15,000 (debit)

Retained Earnings (Subsidiary) $35,000 (debit)

Investment in Subsidiary $50,000 (credit)

Eliminate Common Items and recognize Goodwill or Gain on Bargain  Purchase if any.

A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog vendor decides to start producing turkey dogs and ham sandwiches as well. Since the new products were introduced, average costs rose dramatically. The vendor is experiencing

Answers

Answer:

Diseconomies of scope

Explanation:

Diseconomies of scope is when average cost increases as a result of joint production of goods and services.  

Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2. Year 2: Sales are $82,500; average accounts receivable is $11,000. Year 1: Sales are $78,000; average accounts receivable is $10,000. a.48.7 b.46.8 c.7.8 d.7.5

Answers

Answer:

Days in Receivables:

Year 2:

= Average Receivables/Sales x 365 days

= $11,000/$82,500 x 365 days

= 48.67

= 49 days

Year 1:

= Average Receivables/Sales x 365 days

= $10,000/$78,000 x 365 days

= 46.79

= 47 days

Explanation:

a) Data:

Sales & Receivables

Year 2: Sales are $82,500; average accounts receivable is $11,000.

Year 1: Sales are $78,000; average accounts receivable is $10,000

b) he days' sales in receivables for company A measures the efficiency of credit collection by showing the number of days it takes company A to receive cash from its credit customers.  It is an efficiency ratio that measures management's ability to manage credit policies.

Colin thinks of a new concept for a palm-sized computer notebook. He also thinks of a new, faster process for producing the notebooks. Federal copyright law protects:______

Answers

Answer: neither Colin's concept nor his process.

Explanation:

The Copyright law in the United States is a a law that gives monopoly protection to the original works of an author. The copyright law was put in place in order to prevent people from copying the works of other people.

In this case, we are told that Colin thinks of a new concept for a palm-sized computer notebook and also thinks of a new, faster process for producing the notebooks. Therefore based on the explanation given above, the Federal copyright law protects neither Colin's concept nor his process.

The formula for the simple deposit multiplier is :______

a. Simple Deposit Multiplier = 1/RR
b. Simple Deposit Multiplier = 1/1-RR
c. Simple Deposit Multiplier = -RR/1-RR
d. Simple Deposit Multiplier = (1-RR)/RR


If the required reserve ratio is 0.15, the maximum increase in checking account deposits that will result from an increase in bank reserves of $5,000 is $________

Answers

it can be any of them but i think simple deposit multiplier = 1/1RR

The formula for the simple deposit multiplier is:

B. Simple Deposit Multiplier = 1 / (1 - RR)

Where RR is the required reserve ratio.

How to explain

In your example, the required reserve ratio is 0.15, which means that banks are required to keep 15% of their deposits in reserve. This means that for every $1 in deposits, banks can lend out $0.85.

The maximum increase in checking account deposits is therefore equal to the simple deposit multiplier times the initial increase in bank reserves. In your example, the initial increase in bank reserves is $5,000. So, the maximum increase in checking account deposits is:

$5,000 * 1.176 = $5,882.35

Therefore, the maximum increase in checking account deposits that will result from an increase in bank reserves of $5,000 is $5,882.35

Option B is correct.

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You would like to have $50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7% interest annually. Your first payment will be made at the end of the year.
Required:
A) How much must you deposit annually to accumulate this amount?
B) If you decide to make a lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be?
C) At the end of five years, you will receive $10,000 and deposit this in the bank towards your goal of $50,000 at the end of 15 years. In addition to this deposit, how much must you deposit in equal annual deposits in order to reach your goal?

Answers

Answer:

ah

Explanation:

._.

Product differentiation is a key component of monopolistic competition. Given the following scenarios, label them accordingly by how products are differentiated.
GrrrArg! Productions attempts to carve out a niche in the crowded zombie film industry by specializing in movies featuring only finger -puppet zombies._______
Jay is a Korean pop star, and as such, he has long, flowing hair. One day, he decides to retire from the singing industry and walks to the local Products right outside his apartment, despite it being more expensive than the Supercuts 10 minutes away.________
Wayne is a beginning photographer. He is in the market to buy a new camera lens and notes that certain lenses take clearer pictures but they become exponentially more expensive to purchase as the sharpness of the image increases. He chooses to start with the lowest grade lens (i.e. the cheapest)._________
The video game industry caters to a wide array of people, with games like Final Fantasy to appeal to the role playing type, Tekken for those who like fighting games, Halo for the first person shooters, and Super Mario for the adventurous.__________

Answers

Answer:

1. differentiated by style or type

2. differentiated by Location

3. differentiated by quality

4.differentiated by style or type

Explanation:

For creating a monopoly in a market place first thing the firm should do is to introduce their unique product so the chances of the competition could be less

Here are the cases given, based on this, the type of product differentiation is as follows

a. In the first case, the differentiation in the product is done by style or by type

b. In the second case, the differentiation in the product is done by location as the two locations are given in the question

c. In the third case, the differentiation in the product is done by quality as the discussion is for the cameral lens i.e cheap and expensive one

d. In the fourth case, the differentiation in the product is done by style or by type as the different person has different playing roles

Process costing typically uses only one Work in Process Inventory account, while job order costing typically uses a separate Work in Process Inventory account for each department.
a. True
b. False

Answers

Answer:

False.

Explanation:

Process costing typically uses only one Work in Process Inventory account, while job order costing typically uses a separate Work in Process Inventory account for each department. This is simply a false statement.

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis. Process costing typically uses more than one Work in Process Inventory account because costing at each stage of production or manufacturing process.

Job order costing can be defined as a cost accounting method used to determine and accumulation of the cost of manufacturing each product or a single unit of production. Job costing order typically uses only one Work in Process Inventory account for each product.

In conclusion, Process costing typically uses a separate Work in Process Inventory account for each department while job order costing typically uses only one Work in Process Inventory account for each product.

A recent trend has seen cities opt to leave the stadium management business and either allow the team or a third party (e.g., AEG or SMG) to manage the facility in exchange for a fee.
A. True
B. False

Answers

Answer: True

Explanation:

recent trend has seen cities opt to leave the stadium management business and either allow the team or a third party (e.g., AEG or SMG) to manage the facility in exchange for a fee.

This is true. Cities don't really go into Stadium management business and focus on other aspects of business or in certain cases, look out for a third party.

Answer:

true

Explanation:

After owning a Maplewood Company bond for five years, Michelle exercised an option that allowed her to exchange her bond for 20 shares of the company stock. Michelle owned a

Answers

Answer: B. convertible bond.

Explanation:

A Convertible bond is as the name implies, a fixed income asset. However, it also has a hybrid function in that it can be converted into shares or equity in the company that issued the bond.

In the agreement, when this can be done is up to the bondholder but there might be only specific times in which they can convert the bond. As a result of its ability to be convertible to stock, the price of this bond is quite susceptible to interest rate changes as well as the price of the stock that it can be converted into. If for instance interest rates fall or the stock price rises, these are both incentives to convert the bonds to stock.

Michelle was able to exchange her bond for shares so what she owned was a convertible bond.

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