Answer: $4,050,000
Explanation:
Increase in net worth shows the after tax gain that the person got after the land in question increased in value.
= (Current value - Purchase price) * ( 1 - tax rate)
= (5,500,000 - 1,000,000) * (1 - 10%)
= 4,500,000 * 0.90
= $4,050,000
Answer:
The answer is C.
Explanation:
Credit sales is $6,000
Bad debt is 3% of net credit sales which is $180($6,000 x3%)
Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.
According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.
So we have have:
Dr Bad debt expense $180
Cr Allowance for Doubtful Accounts $180
Answer:
Design Capacity Utilization= 75%
Production efficiency = 120%
Explanation:
Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there
1. The Capacity Utilization = The Actual Output/ Design Capacity
Actual Output= 300 hamburgers a day
Design Capacity = 400 Hamburgers a day
Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100
= 75%
2. The Efficiency of the production = The Actual Output / The Effective Capacity
Actual Output = 300 Hamburgers a day
Effective Capacity = 250 hamburgers
= 300 Hamburgers/ 250 Hamburgers x 100
= 120%
Conclusion
First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.
Based on the graph that shows the change in the market for bicycles, the statement that explains the graph is The demand for bicycles increased due to news about the health benefits of exercise. The market price & quantity increased.
<h3>Which statement explains the supply and demand graph?</h3>
The question is not complete as the graph is not given. However, an answer can be formulated based on the laws of demand and supply.
The most likely option to be true is that the demand for bicycles increased due to news about its health benefits and then this led to the market price and quantity increasing.
This is because the increased demand for the bicycles would have drove the prices up. This would then have inspired suppliers to produce more bicycles thereby increasing bicycle quantity as well.
Find out more on demand increasing at brainly.com/question/4371942
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Answer: $5,396.79
Explanation:
The net present value is value of the after tax cash flows from an investment minus the value of the amount invested.
The net present value can be found using a financial calculator.
Cash flow for year zero = $-175,000
Cash flow for each year from year 1 to year 3 = 70,000
I = 8%
NPV =$5,396.79
I hope my answer helps you
