Answer:
There is a loss of 18,000
Explanation:
In this question, we are asked to calculate the amount of boot in this transaction.
We proceed as follows;
We must identify that to buy one asset, we exchanged one asset with another
Mathematically;
loss or gain = asset given up - Discount received in exchange
From the question we identify the following;
value of asset given up = 225,000 - 195,000 = 30,000
Discount received in exchange = 12,000
Thus, loss or gain is
= 30,000 - 12,000
So, there's a loss of 18,000
Answer:
The Maigold's free cash flow can be calculated using the below formula:
Cash Provided by Operations-Capital expenditure-Dividends paid
Explanation:
Cash provided by operations $21700
Capital expenditure ($10100)
Dividends paid ($3500)
Free cash flow of Maigold's $8100
Answer:
the banks will eventually make new loans totaling 9,000 and the money supply will increase by 10,000
Explanation:
The money multiplier is 1/0.10= 10. If 1,000 new dollars of currency are deposited in the banks, they must hold $100 as required reserves and can lend out $900. Through the money multiplier, loans will increase by $900*10= $9000. The expansion of the money supply is the original deposit + the increase in loans or $1,000+ $9,000= $10,000
Answer:
c. $1,400
Explanation:
Gross income
= Interest on U.S. government bonds + Interest on a Federal income tax refund + Gain on the sale of Madison County school bonds
= $700 + $200 + $500
= $1,400
Therefore, Heather must report gross income in the amount of $1,400.
