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2 years ago

Which of these is a major advantage of a market economy?

1 answer:

5 0

These is a major advantage of a market economy is it can change direction rapidly when needed as markets change. Thus second option is correct.

<h3>What is Market Economy?</h3>

Market Economy refers to the economy in which the prices of the goods and services are determined by the two market forces that are supply and demand.

There is a less control of the government in the market economy and therefore all the decisions are taken by the private individuals. Thus option 1st is incorrect.

The Prices of the goods and services are determined by the supply and demand forces and the prices are kept as per the affordability of the customers. Thus option 3rd is also incorrect.

Therefore the correct option is 2nd one as the market changes the price of the good and services are also effected and get changed.

Learn more about Market economy here:

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A piece of property bought by XYZ Corporation a few years ago was sold for $5 M. The cost basis for this property was $2.75 M. T

Tanzania [10]

Answer:

True

Explanation:

Data given in the question

Sale value of the property = $5,000,000

Cost basis of property = $2,750,000

And, the taxable income is $12,150,000

So, based on the above information, the capital gain on the property is

= (Sale value of the property - Cost basis of property) × capital gain tax rate

= ($5,000,000 - $2,750,000) × 15%

= $337,500

We assume the capital gain tax rate is 15%

Hence, the given statement is true

8 0

2 years ago

Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the product

jek_recluse [69]

Answer:

Product 1 - $36

Product 2 - $ 96

Product 3 - $66

Explanation:

The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.

These costs includes cost of purchase, freight, Insurance cost during transit etc.

Subsequently, inventory is to be carried at the lower of cost or net realizable value.

The NRV is the Selling price less the cost to sell.

Given

Product 1 Product 2 Product 3

Cost $36 $ 106 $ 66

Selling price $ 88 $ 168 $ 118

Costs to sell $ 9 $ 72 $ 26

NRV $ 79 $ 96 $ 92

6 0

3 years ago

The balance in Unamortized Discount on Bonds Payable

Irina-Kira [14]

Answer:

Correct option is (a)

Explanation:

Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.

Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.

4 0

3 years ago

Upon customer request, a dealer in a competitive municipal syndicate must disclose:__________.

soldi70 [24.7K]

Answer:

B. order priority provisions

Explanation:

When investors want to purchase municipal bonds in the primary markets, it is important for the issuer to prioritise orders from investors in a bond offering.

The underwriter must follow the issuer's priority of orders in allocating purchase orders for municipal bonds.

So in a competitive municipal syndicate when a customer asks for order priority provisions, it must be provided by the dealer.

This shows transparency of the process to the investor as he now knows when each order will be filled.

5 0

3 years ago

A company was the victim of several frauds that totaled approximately $10 million in one year. With a profit margin of 10 percen

Arisa [49]

Answer:

100,000

Explanation:

Given that

Approximately frauds = $10 million

Profit margin = 10%

And the sale value of the product per unit = $1,000

So by considering the above information, the additional units is

= Approximately frauds × Profit margin

= $10 million × 10%

= 100,000

So by multiplying the approximate frauds with the profit margin we can get the additional units

8 0

3 years ago