Suppose the reserve requirement in the United States is 10% and banks do not hold excess reserves. Suppose the Federal Reserve wants to increase the money supply by $50 million. (a) Briefly explain the appropriate open market operation the Fed would undertake to accomplish their goal. (b) What is the minimum amount of currency the Fed would need to add to the economy to accomplish their goal? (c) Explain why, in reality, the Fed may have to have to add more currency than the number you found in (b) to accomplish their goal. Think about the assumptions that would have to be true for the minimum amount of currency to increase the money supply by $50 million

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.