Interest, inflation, and purchasing power suppose cho is an avid reader and buys only comic books. cho deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. assume this interest rate is fixed-that is, it won't change over time. at the time of her deposit, a comic book is priced at $15.00. initially, the purchasing power of cho's $3,000 deposit is comic books. for each of the annual inflation rates given in the following table, first determine the new price of a comic book, assuming it rises at the rate of inflation. then enter the corresponding purchasing power of cho's deposit after one year in the first row of the table for each inflation rate. finally, enter the value for the real interest rate at each of the given inflation rates. when the rate of inflation is greater than the interest rate on cho's deposit, the purchasing power of her deposit over the course of the year.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.