Engenuity said to have
1. Option A is not the best choice, because the monthly payments will be too high.
2. Option B is not a good choice, because it requires too high of an up-front cost, and the mileage restriction might be a problem.
3. Option C is the best choice for my budget, and it will allow me to own a car outright once the loan is repaid.
Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.
Explanation:
When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.
A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.
Answer:
Beneficiary recognized gain is $510000.
Explanation:
The amount paid by the decedent for the stock = $280000
The market value of the stock at the time of death = $500000
The selling price or the amount received by the beneficiary by the sell of stock = $510000
Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.
Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.
= $510000 – 0
= $510000
Answer:
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
Explanation:
Step 1 of 2
Calculate the amount of factoring fee.
Factoring fee = 5% ×Account Receivable
=5%×$75,000
=$3,750
Step 2 of 2. Journey record. Image attached.
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
