Answer:
$25,000
Explanation:
The accrual system of accounting recognizes incomes and expenditures when the economic activity associated with them takes place. Revenue is recorded when a sale is made regardless of whether payment has received or not.
For grace company, revenues as per the accrual system will be
$60,000 and expenditures $35,000
Net income = $60,000 - $35,000
=$25,000
This practice, which is known as price discrimination, is illegal under the Robinsons-Patman Act.
This act stipulates that if you're going to sell your goods to various customers, the prices have to be the same regardless of whom you are selling your products to.
Answer:
<em>a.</em> Post-tax interest rate on taxable bonds issued by the Coca-Cola Company =100%-22% =10*78%= 7.80
Dennis will choose<em> Taxable bonds </em>because it gives higher post-tax interest rate of 7.80% as against 7.50% on municipal bonds.
<em>b. </em>Post-tax interest rate on taxable bonds issued by the Coca-Cola Company
=100%-32% =10*68%= 6.80%
Dennis will choose<em> </em> municipal bonds because it gives higher tax free interest rate of 7.50% as against 6.80% on <em>Taxable bonds</em>.
<em>c. </em>Dennis will indifference when post-tax interest on <em>Taxable bonds is equal to tax free interest on </em>municipal bonds i.e 7.50%.
Let x% represent the expected tax rate.
=x% * 10%=7.50%
=10x%=7.50%
Divide both side by 10
=x%=7.5/10=0.75
=1-0.75=25%
At 25% tax rate, Dennis would be indifferent between the bonds.
Explanation:
Answer:
An unconscionable contract
Explanation:
An unjust treatment occurs here.
This type of contract is termed unconscionable in law because it leaves one party (the low income family) with no choice due to major differences in their bargaining power between the parties to accept the contract.
However, considering the circumstances in this example:
1. The contract is contrary to good conscience because of the high interest rate.
2. And because no reasonable or informed person would otherwise agree to it.
Answer:
The new technology has led to an increase in the availability of Blu-ray players and a decline in Blu-ray player prices