Answer:
What is the growth rate of nominal GDP?
the inflation rate?
the real interest rate?
Explanation:
money supply × velocity of money = price level × real GDP = nominal GDP
since velocity of money is constant, any change in the money supply will result in an equal change in nominal GDP. Since the money supply grows by 8%, the nominal GDP also grows at 8%
growth rate of the money supply + growth rate of the velocity of money = inflation rate + real GDP growth rate
8% + 0 = inflation rate + 3%
inflation rate = 8% - 3% = 5%
real interest rate = nominal interest rate - inflation rate
real interest rate = 9% - 5% = 4%
Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period.
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset.
<span>A. Compute Bob's realized gain (loss) on the exchange.
$320,000 + $40,000 + $80,000 = $440,000 - that is selling price
$440,000 - $240,000(basis) = $200,000 - that is realized gain
B. Compute Bob's taxable recognized gain.
$200,000 / $440,000 = 45.45%
($40,000 + $80,000) * 45.45% = $54,544
C. Compute Bob's basis in the land.
$(440,000-120,000) / $440,000 = 72.72%
$240,000 * 72.72% = $174.545</span>
The correct answer that would best complete the given statement above would be option A. SEQUENCE refers <span>to the order of things, such as performing the goal-setting processes. Goal setting is a process in which you will be thinking of possible ideas that will help and understand how to achieve your goals. Hope this answer helps.</span>
