Answer:
On self-constructed assets from the date an entity formally adopts a plan to build a discrete project.
Explanation:
Capitalized interest is an accounting practice required under the accrual basis of accounting. Capitalized interest is an interest that is added to the total cost of a long-term asset or loan balance. This makes it so the interest is not recognized in the current period as an interest expense.
Capitalization is the addition of unpaid interest to the principal balance of your loan. The principal balance of a loan increases when payments are postponed during periods of deferment or forbearance and unpaid interest is capitalized.
Answer:
The company is benefiting from Economies of Scale.
Explanation:
Economies of Scale is an economic term that describes the advantages obtained by increasing output, which reduces the average cost of production. This happens because there are fixed costs and variable costs involved in production. The fixed costs do not increase with increased production, most times. With efficiencies obtainable from increased production, the average cost per unit decreases.
Answer:7 years
Explanation:
Depreciation per annum
Cost- salvage value/ no of years
$4,000,000-400,000/8
= $450,000
Accumulated depreciation= depreciation per annum * no of year
Therefore no of years
= Cross multiply
Accumulated depreciation/ depreciation per annum
=$ 3,150,000/$450,000
= 7 years.
Answer:
The correct answer is option D.
Explanation:
In a perfectly competitive market, firms can have positive economic profits only in the short run. In the long run, though, the firms can enter and exit the market, so if some firms among the 1,000 are having profits, it will attract potential firms to join the market.
This causes the market supply to increase. This increase in supply reduces prices and profits.
Similarly, if some of the firms among 1,000 are having losses in the short run, then in the long run, the firms incurring losses exit the market. This reduces market supply and thus increases price and profits.
This process continues until all the firms are having zero economic profits.
I’m pretty sure it is c i had the same question