Answer:
The correct answer is B
Explanation:
The net cost of goods is computed as if the paid in the discounting period:
Net Cost of goods = Inventory cost - (Inventory cost × Discounting percentage)
where
Inventory cost is $9,000
Discounting percentage is 2%
Putting the values above:
Net Cost of goods = $9,000 - ($9,000 × 2%)
Net Cost of goods = $9,000 - $180
Net Cost of goods = $8,280
Therefore, the amount of $8,280 will be paid by the company if paid within the discounting period and avail the discount of $180.
Answer:
Leased Fee Interest
Explanation:
Leased Fee Interest refers to the right of the lessor to lease his property to a tenant and earn rental income in addition to the value of the asset which is reverted back to the lessor upon expiry i.e reversionary right.
The total of leased rental payments and reversionary value is termed as Leased Fee Interest.
A lease is a contract wherein one party i.e the lessor agrees to lend the asset to other party i.e the lessee in exchange of periodic payments in the form of lease rentals usually without transferring the ownership of the asset.
Answer: Option (c) is correct.
Explanation:
Given that,
Quantity demanded increases by = 30%
Price elasticity of demand = 2
Therefore,
Price elasticity of demand = 
2 = 
Percentage change in prices = 
= 15%
Therefore, price of a particular good decreases by 15%.
Answer:
E. $63,401
Explanation:
gain on disposal = salvage value of plant - book value on date of sale
= $5,790 - $4,820
= $970
tax on disposal = $970*35%
= $339.50
after tax salvage value = $5,790 - $339.50
= $5,450.50
total cash flow in 4 years
= annual operating cash flow + net working capital + after tax salvage value
= $53,500 + $4,450 + $5,450.50
= $63,401
Therefore, The Year 4 cash flow is $63,401.
Answer:
C. $142.50
Explanation:
From the existing contract,
200 units for $10 each
150 units were delivered so, 10 x 150= $1500.
The customer wants to extend the contract for additional 100 units at $9.50 each.
So,what is the revenue to Harold Corporation for these additional units which cost $9.50 for the next 15 units.
Therefore, 15 x 9.50= $142.504
