Answer:
$20.00 and $32.50
Explanation:
The computation of the ending inventory using the lower of cost or market value which is shown below
For Product 1
Given that
Replacement Cost = $22.50
Net Realizable Value is
= Estimated selling price - Estimated cost to dispose
= $40 - $5
= $35
So, the market value is
= Net Realizable Value - Profit Margin
= $35 - (0.30 × $40)
= $23
As we can see that the cost is $20 and the market value is $23 so the lower value is $20 and the same should be selected
For Product 2
Given that
Replacement Cost = $27
Net Realizable Value is
= Estimated selling price - Estimated cost to dispose
= $65 - $13
= $52
So, the market value is
= Net Realizable Value - Profit Margin
= $52 - (0.30 × $65)
= $32.50
As we can see that the cost is $35 and the market value is $32.5 so the lower value is $32.5 and the same should be selected
The term fractional reserves refers to<span>Reserves being a fraction of total deposits</span>
Answer:
C. Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.
Explanation:
Mark has absolute advantage in both as it can outproduce Krystal in both, ppoems and TB commercials
now, referring to comparative advantage:
Mark opportunity cost for TV comm: 12/4 = 3
Krystal opportunity cost for TV comm: 8/2 = 4
It has comparative advantage doing TV comm as it renounce to less poems
Mark opportunity cost for poems: 4/12 = 1/3
Krystal opportunity cost for poems: 2/8 = 1/4
Krystal has a comparative advantajge as it renounce to a quarter of TB commercial per poem while Mark to a third
Answer:
The ammount due at the end of the loan adds for $27,456
Explanation:
If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.
It is important to notice that the loan is done at simple interest, so the interest does not capitalize.
