In exhibit 15-7, if mr. brown pays out all of the proceeds of the loan to mr. john white who is going to make the renovations of the restaurant, the lower walloon national bank will now have: $6,000 in reserves, $4,000 in loans, and $10,000 in checkable deposits. $10,000 in reserves, $8,000 in loans, and $2,000 in checkable deposits. $2,000 in reserves, $4,000 in loans, and $10,000 in checkable deposits. $2,000 in reserves, $8,000 in loans, and $10,000 in checkable deposits. $0 in reserves, $8,000 in loans, and $10,000 in checkable deposits.

Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Suppose that electricity producers create a negative externality equal to $5 per unit. further suppose that the government imposes a $5 per-unit tax on the producers. what is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?