Answer:
B. n/a (200) 200 200 n/a 200 n/a
Explanation:
A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.
E.g. you paid $100 within the discount period (2% discount)
Dr Accounts payable 100
Cr Cash 98
Cr Purchase discounts 2
This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.
Answer:
e. None of the above
Explanation:
Statement showing Computations
Paticulars Amount
Cost of building 3,000,000.00
Cost recovery deduction 3,000,000 *.00455
the cost recovery for 2017 is 13,650.00
Answer and Explanation:
The Perfect competition is a market condition in which there are very large number of buyers and sellers that sell the same or identical products having perfect knowledge with respect to products and services. Moreover, there is free entry and exit in this market
Monopolistic competition is a market condition that deals with many firms that are closely related to each other but sell differentiated products. Moreover, there is free entry and exit in this market
In the monopoly market, there is only one seller who controls the overall market. Due to this, the seller charged the high price as there is no competition. There is no free entry and exit in this market
In the oligopoly market, there are few sellers who deal in a single market. There is no free entry and exit in this market
Based on the above explanation, the categorization is shown below:
<u>Scenario Number of Firms Type of Model</u>
<u> Product Market </u>
1. Many Differentiated product Monopolistic
2. Many Standardised products Perfect
Competition
3. Few Differentiated products Oligopoly
4. One Unique Monopoly
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000