1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the current actual u-rate for the US economy as of May Data for 2019? Is this unemployment rate below or above or equal to u-rate at full employment (usually called natural rate of unemployment or NAIRU)? 4pts
2) A) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few sentences. 3pts .
B) Draw an AS/AD diagram illustrating your answer to part (A) and refer to the current state of the economy of the US to compare in this context. Be sure to label all lines and axes in your diagram clearly. 3pts
3) Between Q1, 2016 and Q2, 2018 measured Output in the non- farm business sector increased by 3.6%. During this time period the unemployment rate fell from 4.6% to 3.7% and total hours worked in the nonfarm business sector increased by 3.8%. What was the % rate of change in labor productivity over the year? Explain your answer briefly. (Hint: Labor productivity = Y/Labor hours; RGDP growth rate = Labor productivity growth plus and Labor Force Growth rate. No need to use u-rate changes for this question)
In: Economics
Problem 21A-1 a-c
The following facts pertain to a non-cancelable lease agreement
between Faldo Leasing Company and Swifty Company, a
lessee.
| Commencement date | January 1, 2017 | ||
| Annual lease payment due at the beginning of each year, beginning with January 1, 2017 |
$100,640 | ||
| Residual value of equipment at end of lease term, guaranteed by the lessee |
$46,000 | ||
| Expected residual value of equipment at end of lease term | $41,000 | ||
| Lease term | 6 | years | |
| Economic life of leased equipment | 6 | years | |
| Fair value of asset at January 1, 2017 | $557,000 | ||
| Lessor’s implicit rate | 6 | % | |
| Lessee’s incremental borrowing rate | 6 | % |
The asset will revert to the lessor at the end of the lease term.
The lessee uses the straight-line amortization for all leased
equipment.
Prepare an amortization schedule that would be suitable for the lessee for the lease term.
Prepare all of the journal entries for the lessee for 2017 and 2018 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31
Suppose Swifty received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected?
| Right-of-use asset |
What if Swifty prepaid rent of $5,000 to Faldo?
| Right-of-use asset |
In: Accounting
1 The depth and liquidity of the global financial markets help companies reduce their capital costs, improve access to financing, invest more, and grow.
True or False?
2 2018 Global Equity Market Capitalization $33.6 trillion
True or False?
3 U.S. merger and acquisition announced deals totaled $1.7 trillion in 2018
True or False?
In: Finance
An insurance company issued a $45,000, 6% 10 year bond payable at 112 on January 1, 2018. Interest is paid semiannually on Jan 1 and July 1.
1. Journalize the issuance of bond payable on January 1
2. Journalize the payment of semi-annual interest and amortization of the bond discount or premium on July 1, 2018
In: Accounting
Contents »
X Company has the following data from 2016 and 2017:
| 2016 | 2017 | |
| Total costs | $260,600 | $411,850 |
| Units produced | 32,000 | 57,000 |
Expected production in 2018 is 43,800 units. Using the high-low
method with the 2016 and 2017 data to determine the parameters of
the cost function, what are estimated total costs in 2018?
In: Accounting
On January 1, 2018, Sport Company purchased for $800,000 equipment having an estimated useful life of 4 years with an estimated salvage value of $20,000.
Determine the depreciation expense and year-end book values for 2018 and 2019 using the
(1). Sum-of-the-Years'-Digits Method
(2). Straight-Line Method
(3). Double-declining method
In: Accounting
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018.
A) $73,000. B) $82,000. C) $87,000. D) $89,000.
In: Accounting
The Great Lakes Company issues $ 509,000 of 12?%, 10minusyear bonds at 106 on March? 31, 2018. The bond pays interest on March 31 and September 30. Assume that the company uses the straightminusline method for amortization. The journal entry to record the first interest payment on September? 30, 2018 includes a? ________. (Round your intermediate answers to the nearest? dollar.)
In: Accounting
The shareholders’ equity of Tru Corporation includes $620,000 of
$1 par common stock and $1,220,000 par of 7% cumulative preferred
stock. The board of directors of Tru declared cash dividends of
$152,000 in 2018 after paying $62,000 cash dividends in each of
2017 and 2016.
Required:
What is the amount of dividends common shareholders will receive in
2018?
In: Accounting
If the DuPont Analysis for Apple (in 2018) is 54.77% and the same analysis for Microsoft (also in 2018) is 39.88%, then...
In: Finance