Concentrated corporate and commercial masters (advertisers). The correct answer is option (d).
What is hutchins commission?When Henry Luce urged Robert Hutchins, then-president of the University of Chicago, to assemble a panel to investigate the correct role of media in a contemporary democracy, the Hutchins Commission was established during World War II.
Hutchins Commission members believed that as media ownership shifted into fewer hands, undesirable viewpoints would not be given a platform in the media. The press, as well as the second recommendation of the Hutchins Commission urged journalists to create "a forum for the exchanging of ideas and A Free and Accountable Press, by the authors of the final report, "came to the conclusion that there was a threat to press freedom.
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a company is considering a $150,000 investment in machinery with the following net cash flows. the company requires a 10% return on its investments. (pv of $1, fv of $1, pva of $1, and fva of $1) (use appropriate factor(s) from the tables provided.) year 1 year 2 year 3 year 4 year 5 net cash flows $10,000 $25,000 $50,000 $37,500 $100,000 (a) compute the net present value of this investment. (b) should the machinery be purchased?
The investor employs capital budgeting techniques to evaluate the financial viability of projects based on a variety of parameters. Capital budgeting techniques include payback, NPV, and IRR.
Yearly Cash Flows Total Flows of Cash 1 $9,500 $9,500 2 $25,400 $34,900 3 $15,500 $50,400.
Which types of capital budgeting are there?Capital planning is characterized as the cycle used to decide if capital resources merit putting resources into. A company's capital assets are typically long-term investments like new software, facilities, and equipment, even though they typically make up only a small portion of its total assets.
What are the four ways to budget for capital?Capital budgeting can be carried out using the Payback Period, the Net Present Value Method, the Internal Rate of Return, or the Profitability Index.
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this type of assumption/principle requires a business to disclose all information about the business that is important for a lender or investor to know in financial statements or in the financial statement notes.
The full disclosure Principle requires a business to disclose all information about the business that is important for a lender or investor to know in financial statements or in the financial statement notes.
According to the full disclosure principle, all information that could influence how well a reader understands an entity's financial statements should be disclosed in those statements. Since there is a lot of information that may be presented, this principle can be interpreted in very judgmental ways. It is common to only disclose information regarding occurrences that are likely to have a major impact on the entity's financial status or financial results in order to decrease the quantity of disclosure.
This disclosure might cover things that aren't yet measurable exactly, including the existence of a legal battle with the government over a tax issue or the result of an ongoing case.
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Consider a relational DBMS that has two relations: Emp (employees) and Dept (departments).
Emp(id, name, age, salary, dname)
Dept(dname, location)
- The Emp table has 500 tuples, and each tuple has a fixed length of 500 bytes. The primary key attribute "id" has a length of 40 bytes.
- The Dept table has 100 tuples, and each tuple has 200 bytes. The primary key attribute "dname" has a length of 20 bytes.
For simplicity, we assume each employee belongs to one and only one department, and each department has 5 employees. All the records are stored in 8K (8192 bytes) disk blocks. Each block uses 100 bytes for its header. Consider the following three disk-organization strategies:
- Sequential/Nonspan: All the Emp records are placed sequentially based on their id's. Similarly, all Dept records are stored sequentially based on their names. Records may not span two or more blocks.
- Sequential/Span: All the Emp records are placed sequentially based on their id's. Similarly, all Dept records are stored sequentially based on their names. Records are spanned, and spanning between blocks does not introduce additional storage cost.
- Clustered/Nonspan: For each department, its department record and its 5 employee records are stored in the same disk block. All department records are stored sequentially based on their names. We do NOT store Emp records separately. No records span two or more blocks.
For each storage organization, compute the total number of disk blocks required to store the two relations. Which of the following statements is true?
a) Sequential/Nonspan: 34 blocks.
b) Sequential/Nonspan: 30 blocks.
c) Clustered/Nonspan: 50 blocks.
d) Sequential/Nonspan: 38 blocks.
All department records are stored sequentially based on their names. The cornerstone of nested-loop join is to scan the outside relation page-by-page and the inner relation page-by-page for each outer page.The correct answer is Clustered/Nonspan:30 blocks.
When S is used in a nested loop as the outer relation, the cost of joining R and S is kept to a minimum.
200 + 0 * 1000, or 200,200, is the cost.The cost of using a sort-merge join to connect R and S is equal to bS + bs * bR.
2bS(1+ceil(logB-1ceil(bS/B) + 2bR(1+ceil (logB-1ceil(bR/B) + bS + bR = 220o(1+ceil(log51ceil(200/52) + 21000(1+ceil(log51ceil(1000/52) + 200 + 1000 = 2.200(1+ceil(log514) + 2:1000.When logB-1ceil(bR/(B-1) exceeds 1, the situation is considered critical. When B reaches 15, something occurs (and B-1 becomes 14).
One input buffer page and one output buffer page, or three buffer pages, are the absolute minimum because the nested-loop strategy does not need many per-relation buffers.
buffers and that the hash function will yield a uniform distribution. The first condition is definitely met because sqrt(200) and sqrt(1000) are both less than the total number of buffers.
Cost equals 3.(bS + bR), or 3.(200 + 1000) or 3,600.
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his method of accounting for long-term contracts recognizes project income only when the contract is completed. question 68 options: incomplete contract method percentage of completion method percentage of completion - capitalized cost method completed contract method
Completed contract method of accounting for long-term contracts recognizes project income only when the contract is completed.
In general, a long-term contract is one that starts in one year and ends in a subsequent tax year and is used to build, install manufacture, or manufacturing property.
Long-term contracts may give an agency much-needed stability they need, particularly if you're just getting started. A long-term contract may make managing your agency's cash flow less of a financial guessing and gives you a fantastic chance to develop a deep connection with your customer.
A long-term work contract is one that normally lasts longer than six weeks; many go on for months or even years. As you become a crucial component of the company, you are frequently given greater responsibility.
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the feeling that consumers experience such as distress, sadness, regret, disgust, or anger after a purchase decision, consumption experience, or disposition decision is referred to as
The feeling that the consumers experience such as distress, sadness, regret, disgust, or anger after the purchase decision, consumption experience or disposition is referred to as dissatisfaction.
Who are consumers?Consumers are people or entities who do not actively engage in entrepreneurial or business activities but who intend to order or utilize purchased goods, services, or products primarily for personal, social, family, or household needs. Consumption, not resale or business, is the main reason why consumers make purchases in an economy. Consumers must pay a specific amount of money before eating. As a result, consumers are an essential part of every economy and are fundamental to the functioning of the economy in a capitalist society. Without consumer demand, it would not be feasible to produce for retail sale. The consumer is also a link in the chain of distribution.
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Toyota is designing its print media advertisements. It decides to use the least complexcopy technique to highlight the urgency of acting immediately. Which of the followingcopy techniques is it more likely to have chosen?a.Direct response copyb. Narrativec. Dialogued. Straight-line copy
Toyota has most likely chosen the narrative copy technique.
By narrating a tale before recommending a good or service which can assist in resolving their issue, narrative copy captures readers' attention. The strength of narrative advertising is that it's a soft sell, allowing readers to relate to the story and foster positive feelings towards the company.
Only a small percentage of us respond positively to being instructed to buy a product. Background story, flashbacks or retrospect, flash-forward, and foreshadowing are examples of common plot devices that can be used in a narrative. Plot is the series of events that constitute a narrative.
First person, second person, third person, and third-person omniscient are common strategies related to narrative viewpoint, or who is telling the story.
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For a given inflation rate, if a rise in the stock market makes consumers more willing to spend, then the ______ shifts _____.
aggregate demand curve; right
aggregate demand curve; left
aggregate supply curve; upward
aggregate supply curve; downward
A rise in the stock market makes consumers more willing to spend, then the aggregate demand curve shifts right.
Consumers typically spend more when they are more optimistic about the direction of the economy. Businesses tend to spend more on investments when there is a high level of business confidence because they think the return on their investment will be significant in the future. In contrast, when consumer or business confidence wanes, expenditure on consumption and investments falls.
The components of aggregate demand—consumption spending, investment expenditure, government spending, and spending on exports minus imports—increasingly move to the right, causing a shift in the aggregate demand curve. As these components decrease, the AD curve will turn back to the left.
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when examining a master budget, where does a company find the planned expenditures for facilities and equipment?
A master budget where does a company find the planned expenditures for facilities and equipment is operating expense budget.
A master budget will provide an overview of revenue and expenditures as well as all the specifics of the company's income-producing activities as they relate to the operational budget. A projection of what would appear on the balance sheet at the conclusion of the accounting period will also be included, along with cash inflows and outflows from the cash flow statement.
A master budget is composed of three primary parts. Operating budgets include all basic business costs and revenue. The budget for capital expenditures includes spending for longer-term projects and assets. Cash flows and business financial information are covered in financial budgets.
The given question is incomplete, the complete question is:
When examining a master budget, where does a company find the planned expenditures for facilities and equipment?
A) operating expense budget
B) capital budget
C) operating budget
D) purchases budget
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malcolm’s employer automatically deducts 37.7% from his paycheck every month for taxes, insurance premiums, retirement accounts, and so on. he ends up taking home $39560.50. what was his gross pay?
The gross pay of the malcolm’s employe is $ 104,935.0133.
Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. the quantity last after all withholdings are accounted for is net pay or take-domestic pay.
Calculation:-
net pay = $39560.50
gross pay × 37.7 % = net pay
X × 37.7 /100 = $39560.50
X = $39560.50 × 100 ÷ 37.7
= $ 104,935.0133
Fundamental revenue is a charge of pay agreed upon by way of an corporation and worker and does now not encompass overtime or any extra compensation. Gross earnings, but, is the quantity paid before tax or other deductions and consists of overtime pay and bonuses.
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true or false: using a turnkey operation can create competition for a firm and it could lose its competitive advantage by selling its process technology through the turnkey project.
True, Using a turnkey operation can put a company in competition, and it may lose its competitive advantage if it sells its process technology through the turnkey project.
A turnkey, turnkey project, or turnkey operation (also spelt turn-key) is a type of project that is built to be sold as a finished product to any buyer. A turnkey project is one that is designed, developed, and outfitted with all necessary amenities by a company under contract.
A turnkey project is a delivery method in which a single entity—a contractor—works under a single contract with a project owner to complete all stages of a project, from the detail engineering to construction.
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overproducing for a given period (that is, producing more units than the denominator activity volume) will generate a(n) variance. multiple choice question. unfavorable fixed overhead spending (budget) unfavorable fixed overhead production volume favorable fixed overhead production volume favorable fixed overhead spending (budget)
Favorable fixed overhead production volume. (Option C)
Why would favorable fixed overhead production volume be generated?Because, in other words, conventional fixed overhead expenses will exceed budgeted (lump-sum) fixed overhead expenses. A favorable fixed overhead production volume variance would result from this differential.
Why is fixed overhead volume variation favorable?When applied fixed overheads are higher than planned fixed overheads, the fixed overhead volume variance is positive. This shows that the corporation overused its manufacturing facilities by cranking out a lot of units using the resources at hand. This indicates a good situation for the business.
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The government is investigating Stuart for insider trading. During the investigation, Stuart makes false statements to investigators. The false statements could be a crime for obstruction of justice
A. under no circumstances
B. only if the false statements were made with an intent to interfere with the investigation
C. even if the statements were not intended to interfere with the investigation
D. only if Stuart is convicted of insider trading
Stewart is being looked at by the authorities for insider trading. Stewart lies to the investigators while the case is being investigated. False statements must be made with the purpose to obstruct an inquiry in order for obstruction of justice to constitute a crime. Here option B is the correct answer.
Insider trading refers to the practice of persons having access to sensitive or important non-public information about a firm trading its securities.
A buddy who has a sizeable stake in the firm is given crucial information regarding the purchase of his company by the CEO of that company. Before the information is made public, the buddy takes action on the knowledge and sells all of his shares.
Owners of businesses, the employers of those insiders for corporations, the ongoing shareholders, and society at large are the groups most likely to suffer from insider trading.
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when comparing depreciation rules for regular tax purposes to those for alternative minimum tax (amt) purposes, which of the following statements are incorrect? (check all that apply.) multiple select question. for amt purposes, businesses must depreciate tangible personal property using the 200 percent declining balance method. the allowable recovery periods and conventions are the same for all depreciable assets for amt purposes as for regular tax purposes. bonus depreciation is deductible for both regular tax purposes and amt purposes. depreciation of real property uses longer recovery periods for amt purposes than for regular tax purposes. for amt, the total amt depreciation is always added to regular taxable income to calculate the amt base.
The statement that is incorrect is allowable recovery periods and conventions are same for all the depreciable assets for amt purposes as for regular tax purposes.
What is an asset?An asset is any resource that a company or other economic organization owns or has control over. Assets are the ownership worth that may be exchanged for cash. The monetary worth of assets that company owns is shown on its balance sheet. It includes money and other valuables that belong to individual or company. Title (a legally enforceable ownership right) to an asset is not necessary in the sense of financial accounting. Any rights (economic resource) that the asset represents must be under the reporting entity's control in order for it to be recognized as an asset. Being able to profit from an item while preventing others from doing the same is control's key feature.
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the essential characteristic of ???? is that they bring hundreds to thousands of suppliers into a single internet-based environment to conduct trade.
The primary feature of Internet marketplaces is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct business.
What is the significance of the marketplace?Marketplaces are open online venues where users may search for a variety of things in one place. These online marketplaces provide variety, price comparison, and a more convenient shopping experience. Marketplaces provided benefits for both the consumer and the business, from faster customer care replies to customisable delivery. A brand that sells online may appear to require an e-commerce site. Existing e-commerce, on the other hand, has climbed above sites. Many vendors rely only on third-party platforms such as Amazon or eBay. The decision to use an external site is heavily influenced by the type of products and services you're offering, as well as your goals.
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what are four examples of temporary marketable security investments utilized by firms to invest idle cash?
The manufacturer of Two-In-One, a combination shampoo and conditioner, shrink wraps a4- ounce foil packet of a smoothing hair pomade to its combo product. Which of the followingpromotion tools is being used in this case?A) rebatesB)samplesC) couponsD) advertising specialties
The following promotion tools is being used in this case is Samples Option B is correct
Promotions encompass any actions that educate customers about a good, service, or brand. The objective is to increase exposure, attract clients, and influence them to select the product over competitors. The use of promotion as a marketing tactic helps suppliers and buyers communicate with one another. The seller attempts to convince and influence customers to buy their products or services by doing this. It helps to inform people about the company, its goods, and its services. A form of communication between the buyer and the seller is promotion.
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Estimated useful life is:
A) the total amount that the company paid for the asset.
B) the expected cash value at the end of the asset's useful life.
C) the number of years for which the asset is useful.
Option C is right answer. An estimate of the average number of years an asset is viewed useable earlier than its value is thoroughly depreciated.”
How do companies estimate beneficial existence of an asset?Factors involved in determining the beneficial lifestyles of a tangible asset consist of the age of the asset when purchased, how regularly the asset is used, and the environmental stipulations of the business that purchased the asset.
What takes place when the estimate of an asset's useful life is changed?If there is a big change in an asset's estimated salvage value and/or the asset's estimated beneficial life, the trade in the estimate will end result in a new amount of depreciation rate in the modern accounting 12 months and in the remaining years of the asset's beneficial life.
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https://brainly.com/question/27993465#SPJ4which social media metric helps marketers to evaluate how conversations about one brand compare with conversations about its competitors?
The social media metrics share of voices assists marketers in determining how conversations about one brand compare to conversations about competitors.
Social media are interactive media platforms that enable users to produce and share content through online communities and networks, including information, ideas, hobbies, and other kinds of expression.
People may have access to a platform through social media that enables them to connect and reconnect with others, so growing and enhancing their in-person networks and interactions. Users of social media can converse, exchange knowledge, and create material for the internet.
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Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 1.0 while the risk-free return is 8 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $767.03 that have a coupon rate of 7 percent. The firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 35 percent marginal tax rate?
a) 10.20%
b) 11.88%
c) 11.52%
d) 13.32%
d) 13.32% is the after-tax weighted average cost of capital for Droz's, if it is subject to a 35 percent marginal tax rate
The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
The Weighted Average Cost of Capital (WACC) of a company is a measure of its total cost of capital, which includes debt, common shares, and preferred shares. Each sort of capital's cost is multiplied by how much of the total capital it makes up.
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to prevent a majority shareholder from dominating the management and operation of a close corporation, the firm should
To prevent a majority shareholder from dominating the management and operation of a close corporation, the firm should require that more than a simple majority of the directors approve any action taken by the board.
In the field of business, majority shareholders tend to make major decisions rather than approving the other shareholders that have a small hold in the corporation.
If a firm is to stop the major shareholders from making all the decisions, then the form should make it a rule that all of the directors or shareholders need to approve any action rather than just the majority shareholders. This action should be implied so that each shareholder has a say in the important decisions.
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a. in 2017 about 700 commercial banks operated in the united states. b. money market mutual funds represent 13 percent of m1. c. a benefit of a money market mutual fund is that shareholders can write checks on their accounts with no restrictions. d. securities are u.s. government bonds and other bonds such as mortgage-backed securities.
13 percent of all mutual funds are money market funds. (B Option)
What are the objectives of the money market funds that mutual funds offer?An example of a fixed income mutual fund that invests in debt securities is the money market mutual fund, which stands out for its investments' quick maturities and low credit risk. The least volatile investing categories include money market mutual funds.
Debt securities are what?Recurrent interest payments are due to the owners of financial instruments known as debt securities. Debt securities, as opposed to equity securities, call for repayment of the borrowed principle. The perceived creditworthiness of the borrower will have an impact on the interest rate on a debt security.
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Qismat is an advertiser at a bedding company. He wants to reach shoppers who purchased his brand's mattress so that he can promote bedding and pillows. Which audience would be best for helping him achieve this goal?
Audiences based on purchase would be best for helping him achieve this goal.
Audience-based buying permits publicists to purchase the best promotion units based on their ideal interest group, as opposed to restricting their missions to conventional area by-area buying. The final product is that sponsors set aside time and cash.
Audience-based buying empowers another degree of mission productivity by permitting sponsors to exchange the variety in estimating between business sectors. Purchasers live all over (particularly now, post-COVID), however area is as yet a critical determinant of out-of-home promoting costs. By opening the gap from a particular area or market to the expansiveness of all suitable OOH media, sponsors can arrive at their main interest group for 30-half not as much as while zeroing in on unambiguous areas.
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TRUE/FALSE. courts are generally inclined to be predisposed to piercing the corporate veil whenever a corporation causes economic harm to others
False. It is fact-driven and necessitates a thorough investigation to decide whether to lift the corporate veil in order to safeguard creditors.
What effect does business have on the economy?In order to secure subsidies, lower their tax liabilities, and influence public policy, corporations use their political clout. Millions of people's quality of life is impacted by corporate policies about pay, benefits, and working conditions.
Which of the following justifications could force a judge to lift the corporate veil?Only if doing so will prevent injustice may a judge pierce the curtain. This need for more than just proof that a creditor won't be compensated.
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ghow can motivational theories help with improving organizational performance? do you see one theory as more practical than the others? why?
Motivational theories can be used in the workplace to understand why certain employees put in more effort or are more dedicated than others.
How may motivational theories enhance the effectiveness of an organization?Theories of motivation offer insight into what influences an employee's performance. It gives managers a tool to inspire staff members and aids in their awareness of better ways to manage the workforce.
Which hypothesis is one of the best explanations of organizational motivation?The Hierarchy of Needs, one of the most well-known and important theories of workplace motivation, was introduced by Abraham Maslow. According to the theory, people are driven to take actions to fulfill five basic needs that are, as the name implies, structured in a hierarchy.
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if we asked you to calculate the return on investment of this purchase, the metrics to consider would be the cost of the investment and what else?
The two principal complete investment return calculations are Net Present Value (NPV) and Internal Rate of Return (IRR).
Both measures are rooted in Time Value of Money concepts, which essentially kingdom that money has time cost because it can earn interest when invested over time.
How do we calculate return on investment?The most frequent is net earnings divided with the aid of the whole cost of the investment, or ROI = Net profits / Cost of funding x 100.
What is the total charge of return on the investment?Total return is the true charge of return of an funding or a pool of investments over a period. Total return includes interest, capital gains, dividends, and realized distributions. Total return is expressed as a share of the amount invested.
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https://brainly.com/question/16725994#SPJ4to be eligible for social security benefits, you receive one credit for every $1,200 in wages that you earn, up to 4 credits per year. how many total credits do you need to qualify for benefits?
To be eligible for social security benefits, you receive one credit for every $1,200 in wages that you earn, up to 4 credits per year. You need to qualify 40 credits for benefits
What is social security benefits?
Benefits from Social Security are payments paid to eligible retired adults, disabled individuals, and their spouses, children, and survivors.
How much of a Social Security payout may you receive?
The maximum benefit is based on your retirement age. For illustration, if you reach full retirement age in 2022 and decide to retire, your maximum benefit will be $3,345. However, your maximum benefit would be $2,364 if you retired at age 62 in 2022. The maximum benefit you could receive in 2022 if you retired at age 70 would be $4,194.
Every year, Social Security benefits are reviewed. In other words, the Social Security Administration evaluates payments each year based on income from the preceding year. Your benefit is recalculated to reflect the increased benefit due, which is retroactive to January of the year after you earned the money, if the most recent year is one of your highest earning years.
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task question how can you fix the current finance decisions so that we are in a healthy cash position at the end of the year?
Ten Strategies to Boost Cash Flow. Offer discounts for early payment, lease instead of purchase, and run credit checks on your customers. Improve your inventory, start a buying cooperative, send out invoices right away, Increase pricing, Pay Suppliers Less, Use High-Interest Savings Accounts, and Use Electronic Payments.
You are unquestionably on the right track if you own a business and your top line or sales are growing swiftly while your earnings are increasing every year. But don't let your guard down. Even growing, profitable organizations might experience cash flow challenges due to inefficient operations in finance, operations, and/or investing. For instance, if your payables are due before your receivables are collected, you will run into cash flow problems. You won't be able to make your payments on time as a result, which could lead to serious problems including payroll delays and questions about your creditworthiness. If you want to increase cash flow, think about implementing any of the following strategies.
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the value of financial assets such as savings, real estate, stocks, and bonds, minus any outstanding debts, best refers to:
You can calculate your net worth by deducting all of your obligations from all of your assets.
What is an obligation?A person is required to follow a course of action, whether it is ethically or legally required. The freedom imposed by commitments is constrained. Those who must comply with obligations may choose to do so willingly. When there is a choice between doing what is morally right and evil, there is a responsibility. In other situations that are considered normative, such as etiquette, social obligations, religious commitments, and potentially political commitments, there are responsibilities that must be fulfilled. Some people are obligated to complete specific duties for additional reasons, such as when it is expected of them or because of tradition or cultural expectations.
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person 1 gets along great with her team and especially her supervisor, person 2. person 2 knows person 1’s strengths and also knows how to challenge her just the right amount. in the middle of the current project, it is announced that person 2 will be temporarily switching to another department and a replacement will come in for the present time to help oversee the remainder of the project. when person 1 hears of this news, she is feeling a bit unsure as she believes she won’t have the same work dynamic with the new replacement as they do with person 2. what should person 1 do?
Person 1 is apprehensive that they won't have the same working relationship with the new replacement as they have with Person 2 when they learn of this news. Because person 2 is just temporarily moving and will eventually go back to becoming person 1.
People 1 and 2 will have new situations in which they may work and prove themselves to be together for future projects, and person 1 can be a leader in this replacement scenario since the authority announcing the replacement doesn't desire the loss of either party.
He must thus lead the replacement and team in the same way as a good leader finds what is universal and should use it in everyday life. Like a game of chess, you must follow the rules in order to succeed. You must also know what to do when various circumstances arise.
The circumstance must be thanked by both of them, not berated. To get rid of the negative, you may always think positively and maintain that attitude.
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an investor purchased a small property with an equity investment of $100,000 and an $800,000 mortgage. she has held the property for five years, and the mortgage now has a balance of $750,000. the market value of her property is estimated to be $950,000. what is her current equity investment in the property?
Her current equity investment in property that she purchased with an equity investment of $100,000 and $800,000 mortgage which the market value of her property is estimated to be $950,000 is $150,000.
In finance world, equity is ownership of an asset that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets. For example, if you own a house worth $100,000 and owes $80,000 on the mortgage, the difference of $20,000 is considered as an equity.
How to calculate her current equity investment in the property?
The formula of current equity as follows :
Current equity investment = initial equity + reduction in mortgage balance
As we know from the question :
Initial equity = $100,000
reduction in mortgage balance = $800,000 - $750,000 = $50,000
Now, let's use the formula :
Current equity investment = $100,000 + $50,000 = $150,000
Therefore, her current equity investment on the property is $150,000
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