In a free market economy, the market, not the government, determines prices. The interaction of producers and consumers determine the price in the market.
Answer:
The correct answer is E
Explanation:
The interest rate is defined as the rate of percentage which is charged on the loan or which is paid on the savings. It is the reward for lending as well as the cost of borrowing.
When the interest rate rises or increases, then everyone tend to borrow more amount of money and the high demand of the credit states that the people are willing to pay more for the same.
So, the situation which would increase the interest rate in the economy is when the corporations set up for the expansion plans and increase the demand for the capital.
Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.
<h3>What is the cost of producing the switches?</h3>
This can be found as:
= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent
= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)
= $205,900
If they bought the switches at $36, they would cost:
= 36 x 5,000
= $180,000
Its cheaper to buy by:
= 205,900 - 180,000
= $25,900
Find out more on total costs computation at brainly.com/question/5168855.
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Answer:
1) deferred tax asset = 4000
2) deffered tax Liability = 4000
Explanation:
1) Journalizing entry at 12/31/2017
deferred tax asset = tax ( per income tax) - tax ( per book tax )
= 32000 - 28000 = 4000
J<u>ournal Entry made for Income tax and deferred tax asset)
</u>
Account Debit Credit
Income Tax Expense 28000
Deffered Tax Asset 4000
Income Tax Payable
32000
2) Journalizing entry at 12/31/2018
Deffered tax Liability = Tax (per book) - Tax ( Income tax )
deffered tax Liability = 32000 - 28000 = 4000
<u>Journal Entry made for Income tax and deffered tax liability</u>
Account Debit Credit
Income Tax Expense 32000
To Deffered Tax Liability 4000
To Income Tax Payable 28000
