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Question - Sunland Enterprises purchased a new piece of equipment for its factory under a new government incentive program in exchange for cash. The equipment cost $152,000 and had an estimated useful life of 10 years. The program was intended to encourage companies to invest in new, innovative technologies. The new piece of equipment purchased by Sunland qualified for a government grant of $22,900. Sunland collected the grant after providing proof of the purchase.
a) Assuming that Sunland uses the cost reduction method, prepare the journal entries to record the purchase of the equipment and the receipt of the government grant.
b) Assuming that Sunland uses the deferral method, prepare the journal entries to record the purchase of the equipment, the receipt of the grant, and the adjusting entry required at the end of the first year (assuming the equipment was purchased on the first day of the fiscal year).
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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