A small economy starts the year with $1 million in capital. During the course of the year,
Question:
A small economy starts the year with $1 million in capital. During the course of the year, gross investment is $150,000 and depreciation is $50,000. What is the economy’s capital stock at the end of the year?
a. $1,150,000
b. $1,100,000
c. $1,000,000
d. $850,000
e. $800,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
The capital stock at the end of the year is determined by subtracting the depreciation from the ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted:
Students also viewed these Business questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
A company reports net income in the current year of $600,000. During the year, the company declares and pays $20,000 in cash dividends on its common stock and $80,000 in dividends on its convertible...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
We can measure how good a center Kevin Bacon is by computing each performer's Hollywood number or average path length. The Hollywood number of Kevin Bacon is the average Bacon number of all the...
-
In how many days will $580 grow to $600 at 4.5% p.a. compounded monthly?
-
For several months Lambi repeatedly made offers to Atkins to buy his Santa Fe Apartments. Finally Atkins wrote Lambi a letter containing the following statement: Here is my suggestion. Clearly $4.2...
-
Find the diameter required for reinforced concrete pipe laid at a slope of 0.001 and required to carry a uniform flow of \(19.3 \mathrm{ft}^{3} / \mathrm{sec}\) when the depth is \(75 \%\) of the...
-
Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2014. Preferred shares, $4.48 non-cumulative, 45,000 shares authorized...
-
Discuss the significance of inherent safety principles within PSM. How can process design and operational strategies be optimized to reduce inherent risks and promote safety throughout the lifecycle...
-
Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = $10 billion. What is the value of G? a. $0 b. $10 billion c. $20...
-
Which of the following transactions are counted in GDP? Select one or more answers from the choices shown. a. Kerry buys a new sweater to wear this winter. b. Patricia receives a Social Security...
-
Which choice gives the sense that some of the facts of the story are unsubstantiated? A. NO CHANGE B. Respecting C. Respectably D. OMIT the underlined portion.
-
Identify the factors assessing the existence of employment relationship? Emma Emma, the Makeup Artist: Emma's interest in makeup began in her teenage years. After training at a prestigious makeup...
-
How does the rendering of services on account affect the accounting equation? How does paying a liability in cash affect the accounting equation? How does the payment of dividends affect the...
-
One sunny day when Hunter was a pup, all his friends left the playground except him. He tried to balance a sizeable rock on the playground's 2.50 m seesaw plank with the fulcrum pivot point at the...
-
7 . Baker Company had the following balances in its accounting records as of December 3 1 , 2 0 2 0 :Assets Liabilities and Equity Cash $ 3 5 , 0 0 0 Accounts Payable 7 , 5 0 0 Accounts Receivable 9...
-
We have the following information for Safilo Group Introduction Profitability Profit Margin 9 . 2 3 % Operating Margin ( ttm ) 1 4 . 1 5 % Management Effectiveness Return on Assets ( ttm ) 3 . 3 7...
-
What is the purpose of closing entries?
-
Explain what is meant by vicarious liability and when it is available?
-
Alice runs a shoemaking factory that utilizes both labor and capital to make shoes. Which of the following would shift the factorys demand for capital? You can select one or more answers from the...
-
Alice runs a shoemaking factory that utilizes both labor and capital to make shoes. Which of the following would shift the factorys demand for capital? You can select one or more answers from the...
-
FreshLeaf is a commercial salad maker that produces salad in a bag that is sold at many local supermarkets. Its customers like lettuce but dont care so much what type of lettuce is included in each...
-
Discuss the impact of the interaction between consumer preferences and long-term unemployment following the Great Recession. In doing so, discuss how this may have shaped the labor market in one of...
-
Refer to tablel which shows efficient levels of production for a pizzeria that only produces pizza and calzones. What is the opportunity cost of producing one more pizza when the pizzeria moves from...
-
Assume that the equation for demand for bread at a small bakery is Q-60-10P+4Y, where Q is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars....
Study smarter with the SolutionInn App