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1 year ago

Using money prices to compare relative values of goods and services represents money functioning as a?

1 answer:

8 0

Using money prices to match relative values of goods and services represents money functioning as a: unit of account.

What is money as unit of account?

As a unit of account, money is the common base of comparison that people use to present prices and record debts. Without a standard unit of account, these tasks would be far more difficult. The third function of cash , as a store useful , is one that we all know well. once you work, you're paid a wage.

What is a unit of account cost?

The unit-of-account costs of inflation are the costs arising from the way inflation makes money a less reliable unit of measurement. Shoe-leather costs are the increased costs of transactions caused by inflation. Menu costs are the important costs of changing listed prices

Learn more about money as unit of account:

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On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or

DedPeter [7]

Answer:

The value of the inventory at the lower of cost or market price is:

= $21,170.

Explanation:

a) Data and Calculations:

Product Inventory Cost per Unit Market Value per Unit LCNRV

Quantity (Net Realizable Value)

Model A 12 $106 $102 $1,225 (12*$102)

Model B 45 84 70 3,150 (45*$70)

Model C 36 254 243 8,748 (36*$243)

Model D 31 85 88 2,635 (31*$88)

Model E 41 132 148 5,412 (41*$132)

Total cost of inventory based on LCNRV (per item) $21,170

3 0

3 years ago

Ravine Corporation purchased 30 percent ownership of Valley Industries for $92,700 on January 1, 20X6, when Valley had capital s

Maslowich

Answer:

The Various answers are clearly explained in the Explanations. Thank you.

Explanation:

First, we calcuate the Net Income of Ravine Corporation Based on the FairValue Method

Year OPerating Income UnrealizedGain Dividend inc. Net Income

20x6 $140,000 11,000 6,000 $157,000

20x7 80,000 11,000 12,000 $103,000

20x8 220,000 11,000 12,000 $243,000

20x9 160,000 11,000 6,000 $177,000

Kindly note, thta the dividend income for each year is based on 30% of the Dividend of Valley for that year for instance, Dividend income for 20x6 = 0.3 x $20,000 = $6,000

Next we calculate the Net Income of Ravine Corpoartion Under the Equity Method

Year OPerating Income Share ofo Income in Valley Net Income

20x6 $140,000 9,000 149 ,000

20x7 80,000 15,000 95,000

20x8 220,000 3,000 223,000

20x9 160,000 12,000 172,0000

NOte as well that the Share of Income in Valley is 30% of the yearly net income of Valley Industries.

Question B) Part 1

Ravine Corporation Journal Entries

S/N Description Debit Credit

1 Cash 12,000

Dividend Revenue 12,000

Being the record of dividend received from valley industries

2. Fair Value Adjustment 11,000

Unrealized holding gain or loss 11,000

Being the rcord of fair value change in value of the investments

Question B) Part 2

S/N Description Debit Credit

1 Cash 12,000

Investment in Valley 12,000

Being the record of dividend received from valley industries

2. Investment in Valley 3,000

Investment Income 3,000

BBeing the share of income of Ravine in Valley

6 0

3 years ago

An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result

mixer [17]

Answer:

6,000

Explanation:

The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability

DATA

Strong = 30,000 , probability = 30%

Moderate = 10,000 , probability = 60%

Weak = -30,000 , probability = 10%

Calculation

Expected profit = Values x Probability

Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)

Expected profit = 6,000 + 6,000 -6,000

Expected profit = 6,000

7 0

3 years ago

The following stockholders' equity accounts were taken from the balance sheet of LAH Corporation as of December 31, 2019 Common

Blizzard [7]

Answer:

1) 30,000 shares issued

2) Common stock average price: 12.1 dollars

book value: $ 22.49

3) 135,000 dividends to common stockholders

Explanation:

1) preferred stock equity $ 3,000,000 / $ 100 par value = 30,000 shares issued

common stock: 400,000 issued x $10 face value : 4,000,000

additional paid-in in excess of par value: 840,000

total paid-in 4,840,000

average common stock price: $ 4,840,000/400,000 shares = 12.1

on average common stock were issued at 12.1 dollars

common stock book value:

(common stock + retained earnings - preferred stock)/outstanding shares

(4,840,000 + 4,260,000 - 105,000)/ 400,000 = 22.4875

3) if 450,000 dividends are distributed:

the compamy will first pay the preferred stocks:

30,000 x $ 100 x 7% = 210,000

dividends in arrears: 105,000

total preferred stock 315,000

bond to common stock:

450,000 declared - 315,000 preferred stock: 135,000 for common stock

4 0

3 years ago

as Jake began his market research he discovered that there wasn't another retail boating supplies business for hunting more than

gulaghasi [49]

The right answer for the question that is being asked and shown above is that: "b. his marketing should stress quality and service." As Jake began his market research he discovered that there wasn't another retail boating supplies business for hunting more than 100 miles in fact there was no large lake or river either Jake concluded that his<span> marketing should stress quality and service</span>

5 0

3 years ago