Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus

Answers

Answer 1
Answer:

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion


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Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the company can sell its entire supply domestically for $170. The U.S. tax rate is 40 percent. Alternatively, Alpha can ship the circuit board to its division in Germany, to be used in a product that the German division will distribute throughout Europe. Information about the German product and the division’s operating environment follows.Selling price of final product: $360Shipping fees to import circuit board: $20Labor, overhead, and additional material costs of final product: $115Import duties levied on circuit board (to be paid by the German division): 10% of transfer price German tax rate: 60%Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.Required:1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?3. Assume that the German division can obtain the circuit board in Germany for $155.a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
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Suppose a tax of $3 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000. The tax generates tax revenue of $6,000. The tax decreased the equilibrium quantity of the good from A. 2,400 to 2,000. B. 2,600 to 2,000. C. 3,000 to 2,400. D. 2,000 to 1,500.

Answers

Answer:

B. 2,600 to 2,000.

Explanation:

tax revenue = units x tax rate

units = tax revenue / tax rate = 6,000/3 = 2,000

2,000 will be the quantity after taxes.

6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus

900 deathweight loss

(tax x ↓unit)/2 = deathweight loss

(3 x ↓unit)/2 = 900

(3 x ↓unit) = 900 *2

↓unit = 1800/3 = 600

It decrease to 2000 from 2600

Final answer:

A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.

Explanation:

When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.

The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.

The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.

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Big and Tall, CPAs, were auditing Mountain Corporation for the year ended December 31, 2019. On January 15, 2020, a major customer of Mountain Corporation declared bankruptcy as the result of an uninsured loss due to a major fire in their warehouse on January 10, 2020. As a result, a material accounts receivable from the customer was determined to be uncollectible. Big and Tall, CPAs, would expect the client to:________. A. Record the loss on uncollectible accounts as a routine transaction in the year 2020.
B. Treat the loss as a subsequent event and adjust the 2019 financial statements to record the loss on uncollectible accounts.
C. Treat the loss as a subsequent event and provide a footnote about the loss in the 2019 financial statements.
D. File a lawsuit against the customer in hopes of collecting some of the money owed to the client.

Answers

Answer:

The correct answer is Option B.

Explanation:

Based on IAS 10 Events after the Reporting Period, subsequent events can be an adjusting event or non-adjusting event. If it is an adjusting event, it means an event after the reporting date before the audited financial statements are signed that provides further evidence of conditions that existed at the reporting date. However, non-adjusting events are events after the reporting date that are indicative of a condition that arose after the reporting date, this requires disclosure in the financial statements while for adjusting events, the financial statements are adjusted for condition that arose after the reporting date.

The declaration of the customer as bankrupt is an adjusting event since it affects the receivable collection, hence the need to adjust it as uncollectible,

Suppose a nation has a labor force of 45.5 million workers and an unemployment rate of 6.15%. Instructions: Round your answers to two decimal places. a. How many workers in this nation are unemployed? million b. How many workers in this nation are employed? million

Answers

 When The number of workers unemployed in this nation is 2.8 million

Unemployed workers

When The number of workers employed is 42.70 million

 Although when 45.5 million accounts for the nation's labor force of 100% since the unemployment rate is 6.15%, then hence proof that the percentage of workforce gainfully employed is 93.85% .(100%-6.15%)

Then Accordingly, the portion of the population is employed is 42.70 million(93.85%*45.5 million) while the balance of 2.8 million is for the unemployed(45.5 million minus 42.70 million)

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Answer:

The number of workers unemployed in this nation is 2.8 million

The number of workers employed is 42.70 million

Explanation:

45.5 million accounts for the nation's labor force of 100%,since the unemployment rate is 6.15%,hence the percentage of workforce gainfully employed is 93.85%.(100%-6.15%)

Accordingly, the portion of the population employed is 42.70 million(93.85%*45.5 million) while the balance of 2.8 million is for the unemployed(45.5 million minus 42.70 million)

The opening balance of Company A is 25,000, and the repayment is scheduled for 1,000 per month at an annual interest rate of 5%. Use the average debt balance to calculate the interest payment. The closing balance of debt at the end of the month is _____ and the interest payment is _____.

Answers

Answer:

Closing balance of debt at the end of the month = $24,000

Interest payment = $102.08

Explanation:

The computation of closing balance of debt at the end of the month and the interest payment is shown below:-

Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month

= $25,000 - $1,000

= $24,000

Interest payment =  Average Debt × Annual interest rate × 12 months

= (($25,000 + $24,000) ÷ 2) × 0.05 ÷ 12  months

= $102.08

Therefore we have applied the above formulas.

Final answer:

To calculate the interest payment, find the average debt balance by adding the opening and closing balance and dividing by 2. Then, multiply the average debt balance by the monthly interest rate to get the interest payment.

Explanation:

To calculate the interest payment using the average debt balance, we need to calculate the average debt balance for the month. To do this, we add the opening balance and closing balance of debt and divide them by 2. In this case, the opening balance is $25,000 and the closing balance is the repayment of $1,000. So the average debt balance is $(25,000 + 1,000) / 2 = $13,000.

Next, we calculate the interest payment by multiplying the average debt balance by the annual interest rate and dividing it by 12 (since it's a monthly payment). The annual interest rate is 5%, so the monthly interest rate is 5% / 12 = 0.41667%. Therefore, the interest payment is $13,000 × 0.41667% = $54.17 (rounded to the nearest cent).

As part of an estate settlement Mary received $1 million. She decided to use the money to purchase a small business in Anywhere, USA. If Mary would have invested the $1 million in a risk-free bond fund she could have made $100,000 each year. She also quit it her job with Lucky.Com Inc. to devote all of her time to her new business; her salary at Lucky.Com Inc. was $75,000 per year.At the end of the first year of operating her new business, Mary's accountant reported an accounting profit of $150,000. What was Mary's economic profit?

a. $25,000 loss
b. $50,000 loss
c. $25,000 profit
d. $150,000 profit 13.

Answers

Answer:

a. $25,000 loss

Explanation:

Economic profit = revenues - explicit costs - opportunity costs

In this case, Mary's economic profit = profit from investment in new business - opportunity cost of not investing $1 million in risk-free bond - opportunity cost of quitting job

= $150,000 - $100,000 - $75,000

= ($25,000)

1. What is the ending balance in the accounts listed below given the following transactions: a. RWV borrows $1,100,000 in the form of a note payable. b. RWV purchases land for $250,000. c. RWV builds a building for $750,000. d. RWV orders $7,500 worth of food, which will be paid for later. e. RWV provides services worth $95,000, and will bill for the services later. f. RWV pays salaries to employees totaling $45,000. g. RWV pays $7,500 towards the food it previously ordered. h. RWV uses $5,000 worth of food. i. RWV pays $17,000 of G

Answers

Answer:

RWV

Ending Account Balances:

Account Details               Debit     Credit

Notes Payable                              $1,100,000

Cash                           $30,500

Land                           250,000

Building                      750,000

Supplies (Food)             2,500

Accounts Receivable  95,000

Service Revenue                               95,000

Salaries Expense       45,000

Supplies (Food) Exp.   5,000

G                                 17,000

Totals                  $1,195,000      $1,195,000

Explanation:

a) Notes Payable

Account Details         Debit     Credit

Cash                                       $1,100,000

a) Cash Account

Account Details         Debit       Credit

Notes Payable     $1,100,000

Land      (b)                                 $250,000

Building   (c)                                 750,000

Salaries         (f)                              45,000

Supplies (Food)  (g)                         7,500

G (i)                                                 17,000

Balance c/d                                $30,500

b) Land

Account Details         Debit       Credit

Cash                     $250,000

c) Building

Account Details         Debit       Credit

Cash                    $750,000

d) Supplies (Food)

Account Details         Debit       Credit

Accounts Payable    $7,500

Supplies (Food) Expense (h)    $5,000

Balance c/d                               $2,500

Accounts Payable

Account Details         Debit       Credit

Supplies   (d)                           $7,500

Cash (g)                   $7,500

e) Accounts Receivable

Account Details         Debit       Credit

Service Revenue    $95,000

Service Revenue

Account Details         Debit       Credit

Accounts Receivable  (e)        $95,000

f) Salaries Expense

Account Details         Debit       Credit

Cash                       $45,000

h) Supplies (Food) Expense

Account Details         Debit       Credit

Supplies (Food)       $5,000

i) G

Account Details         Debit       Credit

Cash                       $17,000

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