On June 1, Harding Co. purchased a machine for $14,000 and estimates it will use the machine for five-years with a $2,000 salvage value. Using the straight-line depreciation method, compute the machine's first year (partial) depreciation expense for June 1st through December 31st.
Answer: $1,400
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If residents of the United States give more gifts to relatives abroad than they receive, unilateral transfers will be
A) positive. B) unaffected. C) negative. D) zeroed out.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
Depreciation
a. does not change the level of capital in the economy. b. is the decrease in the capital stock because of wear and tear c. is also known as capital consumption. d. Both answers B and C are correct.
From the perspective of households and businesses deciding where to deposit their money, the key advantage of the private loans issued by commercial banks is ________
A) transparency B) marketability C) incentive for the bank to collect information D) relatively high interest rates