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2 years ago

_____ gives the property owner an allowance for the decline in the physical condition of real estate over time.

1 answer:

6 0

Depreciation gives the property owner an allowance for the decline in the physical condition of real estate over time., the actual decline in an asset's fair value, such as the annual decline in value of factory equipment due to use and wear, and second, the allocation in accounting statements of the asset's original cost to periods during which the asset is used.

Depreciation in accounting refers to two different aspects of the same idea: first Depreciation is the process of reallocating, or "writing down," the cost of a tangible item (such as equipment) over the course of that asset's useful life.

To learn more about Depreciation, click here.

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_______ develops when people favor regional interests over those of a nation as a whole

Marat540 [252]

<span>Sectionalism develops when people favor regional interests over the interests of a whole nation. Restricted narrow interests and local interests constitutes in the concept of Sectionalism. This can bring in a lot of divide among the people of the same country and it can get worse when the concept get more narrowed.</span>

5 0

4 years ago

A BBB-rated, $1000 face value, corporate bond has a yield to maturity of 8.2%. A U.S. Treasury security has a yield to maturity

Shalnov [3]

Answer:

Price of treasury bond in terms of percentage of face value is 102.106%

Explanation:

Given:

Face value (FV) = $1000

Coupon rate = 7% or 3.5% semi-annually

Coupon payment (PMT) = 1000×0.035 = $35

YTM (rate) = 6.5% or 3.25% semi-annually

Maturity period (nper) = 5×2 = 10 periods

Using PV function to calculate price of treasury bond:

=PV(rate,nper,pmt,FV)

Price of bond is $1021.06 (it is negative as it is a cash outflow)

Price of bond in terms of percentage of face value = $\frac{1021.06}{1000} \times100$

=102.106%

5 0

3 years ago

Refer to exhibit 4-5. if a free market were allowed in the transplanted kidney market, then the equilibrium price would be p2. t

Paladinen [302]

Answer: (q2 - q1).

Explanation:

A free market is an economic system whereby production of goods and services are being regulated by demand and supply forces. In this economic system, it should be noted that there's little or no intervention from the government.

If a free market were allowed in the transplanted kidney market, then the equilibrium price would be p2. The number of kidneys transplanted would increase by (Q2-Q1) compared to the number transplanted at a price ceiling of p= $0.

5 0

3 years ago

The general principle on setting transfer prices that are in the organization's best interests is: A) outlay cost plus opportuni

r-ruslan [8.4K]

Answer:

The correct answer is A) outlay cost plus opportunity cost of the resource at the point of transfer.

Explanation:

In the commercial operations of companies, prices are usually set so that companies obtain a sufficient profit margin to carry out their exploitation cycle, obtain profitability for shareholders and at the same time be competitive in the market.

However, there are certain operations in which the intervenors can manipulate the sale prices of the goods or services they provide, since these transactions are carried out between entities or related persons. In these cases, a company can sell to another at a different price than the market, either higher or lower, so that the transfer price would not follow the rules of the free market, regulated by supply and demand, being able to transfer benefits or losses artificially from one company to another.

To avoid the alteration of prices between entities or related persons, transfer prices are used, whose fundamental principle is that the price to be fixed in transactions between related parties must be the market value (arm's length principle). This principle has been adopted by most of the world's economies and, in particular, by the countries that make up the Organization for Economic Cooperation and Development (OECD), which has established guidelines and doctrine on transfer pricing.

Therefore, companies that belong to the same group or have another type of relationship, should set prices in the same way as they would in normal conditions between independent parties, or what is the same, according to market value.

The pricing between related parties must also be documented, since the Tax Administration may adjust the transfer prices if it considers that they differ from those that would occur between independent parties.

3 0

3 years ago

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expen

Andrew [12]

Answer: $22,500

Explanation:

First calculate the rate of allocation based on sales to determine how much of Department T's sales should be attributed to Advertising.

The Rate of Allocation based on Sales = Advertising Expense/Total sales

= 50,000/475,000

= 0.105263

= 10.5263%

This 10.5% can then be used to find out how much of Advertising to apportion to Department T based on department sales,

= Department sales * Allocation rate

= 213,750 * 10.5263%

= $22,500

$22,500 should be allocated to Department T.

8 0

4 years ago