Information for the economy of Pogo
2019
2020
Assumptions:
Questions:
What is Pogo’s balance of payments in 2019? Show your work
In: Economics
MS = 1/rrm(TR) MD = 75 –220(i) + 3.0(Y) where i represents the rate of interest, Y represents national income, rrm represents the fractional reserve requirment ratio, and TR represents total reserves. Assume national income in 2019 was $1,000 and is projected to be 10 percent higher in 2020. Also assume the reserve requirement ratio is 0.25 and total reserves at depository institutions is 120.
a. What market clearing interest rate would you project for 2020?
b. How much must the money supply change to achieve an interest rate in 2020 of 9 percent? (Hint: using whole percent rather than decimal equivalent; e.g., using 9 rather than .09).
c. If the fractional reserve requirment ratio remains unchanged, what level of total reserves must the central bank achieve to lower the interest rate to its target of 9 percent?
In: Economics
| On January 5, 2018 Calvin's Cropcrushers, Inc. purchased crop | ||||||
| crushing equipment for which the following information is available: | ||||||
| Original cost.................. | $3,800,000 | |||||
| Estimated residual value....... | $200,000 | |||||
| Useful life in years........... | 10 | years | ||||
| Useful life expressed in operating hours | 20,000 | hours | ||||
| 8 | The SECOND year (2019) depreciation if double declining balance is used. | |||||
| 9 | The accumulated depreciation at December 31, 2019 (end of | |||||
| second year) if double declining balance (DDB) is used. | ||||||
| 10 | The book value of the equipment on December 31, 2019 | |||||
| assuming double declining balance is employed. | ||||||
| 11 | The depreciation for year 2020 assuming the equipment is sold | |||||
| on Oct. 31, 2020 and double declining balance is used. | ||||||
| 12 | The gain or loss (INDICATE WHICH) which would result if the equip. | |||||
| is sold for | 2,136,667 | on October 31, 2020 and DDB is used. | ||||
| 13 | The SECOND year (2019) depreciation if sum of the years digits is used | |||||
In: Accounting
2020 Election ~ Bernie Sanders is a popular presidential candidate among university students for the 2020 presidential election. Leading into Michigan’s presidential primary election in 2020, a journalist, Lauren, took a random sample of 12133 university students and found that 9674 of them support Bernie Sanders. Using this data, Lauren wants to estimate the actual proportion of university students who support Bernie Sanders.
We want to use statistical inference to estimate the actual proportion of university students who support Bernie Sanders.
To use a normal distribution in this scenario, which of the
following conditions must be satisfied?
The observations within the sample must be independent of each other. | |
Both n×p0n×p0 and n×(1−p0)n×(1-p0) must be at least 10 where p0p0 is the null value for the population proportion. | |
There must be at least 10 observed successes and 10 observed failures in the sample. | |
Any two samples must be independent of each other. |
In: Statistics and Probability
Exercise 5-26 (Algorithmic) (LO. 3)
Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2020.
If an amount is zero, enter "0".
a. Myrna and Geoffrey filed a joint
tax return in 2019. Their AGI was $79,825, and itemized deductions
were $31,800, which included $25,440 in state income tax and no
other state or local taxes. In 2020, they received a $15,264 refund
of the state income taxes that they paid in 2019. The standard
deduction for married filing jointly in 2019 was $24,400.
$
b. Veronica filed as a single
taxpayer in 2019. Her AGI was $238,000, and itemized deductions
were $45,300. Her local property taxes were $14,700 and her state
income taxes were $19,100. In 2020, Veronica received a $3,800
refund of the state income taxes she paid in 2019. The standard
deduction for single filers in 2019 was $12,200.
$
In: Accounting
On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book value. Apple accounts for its investment in Pear using the initial value method and Pear doesn't pay any dividends.
On January 1st 2015 Pear Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest each July 1 and January 1. Pear uses straight line amortization on these 20 year bonds.
On January 1, 2020, Apple Company acquired all of the Pear bonds for $955,000.
1. Make the necessary worksheet entries for 2020
2. In 2020, Apple reported unconsolidated income of $900,000 and Pear reported income of $100,000 what is consolidated income
3. make the necessary worksheet entries for 2021
4. in 2021, Apple reported unconsolidated inocme of $800,000 and Pear reported income $125,000 what is consolidated income
In: Accounting
Investment in Equity Securities with No Significant Influence
Investment in Equity Securities with No Significant Influence Zyggy Corporation invests in the stock of other companies for trading purposes. Zyggy has the following investment activity during 2018, 2019, and 2020:
b. What gains and losses are reported on Zyggy’s income statements for 2018, 2019, and 2020?
Use a negative sign with answers to indicate a net loss, if applicable.
In: Accounting
A coffee producer holds (owns) a current inventory of coffee worth $6 million (or 1,500,000 pounds) at current spot prices of $4.00 per pound. He plans to sell this inventory in 12 months, or on December 23, 2020. He fears that the price of coffee could fall in 12 months. He is considering a minimum variance (risk) hedge of his inventory using the coffee futures contract. The current price of Dec 2020 coffee futures is $4.10 per pound and the size of one coffee futures contract is 37,500 pounds. The standard deviation of the coffee spot and futures prices are 0.85 and 0.93, respectively. The correlation between futures and spot prices is 0.92. Assume that the coffee spot and futures prices on Dec. 23, 2020 (contract maturity date) are both at $3.80 per pound. What are the gains or losses on futures contracts using reverse trade for an optimal hedge?
|
Loss of $371,250 |
||
|
Gain of $250,250.00 |
||
|
Gain of $371,250.00 |
||
|
Loss of $450,000 |
In: Finance
Blue Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $169,800. The company estimated that the machine would have a salvage value of $16,800 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 $enter a dollar amount (b) Activity method for 2020, assuming that machine usage was 800 hours $enter a dollar amount (c) Sum-of-the-years'-digits for 2021 $enter a dollar amount (d) Double-declining-balance for 2021
In: Accounting
Marigold Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $127,500. The company estimated that the machine would have a salvage value of $10,500 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.)
(a)
Straight-line depreciation for 2020
$enter a dollar amount
(b)
Activity method for 2020, assuming that machine usage was 880
hours
$enter a dollar amount
(c)
Sum-of-the-years'-digits for 2021
$enter a dollar amount
(d)
Double-declining-balance for 2021
In: Accounting