Answer:
much <em>more </em>likely;
There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - <em>Market power</em>
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. - <em>Externality</em>
Explanation:
<u>Property rights</u> are an incentive for individuals to create goods that are needed on the market. In other words, when a discrepancy between demand and supply occurs on a specific market, entities, businesses or individuals that create the goods are motivated to meet market needs through enforced property rights.
On the other hand, when there is a lack of property rights that regulate the market, <em>market failures</em> occur. Two common types of market failures include <em>market power</em> and <em>externalities</em>.
The car dealership example shows <u>market power</u> in practice, as the reigning company can dictate car prices.
The second example shows an externality, as there is evident influence (cost or benefit) on the third party, which they cannot change. People are affected (negatively) by smoke they did not create.
Answer:
Journal Entry to be recorded
DR. Land $475,000
Cr. Common stock $312,500
Cr. Add-in-capital common stock $162,500
Explanation:
Number of Shares = 12,500 shares
Share Market price = $38
Share Par Value = $25
Total value of property to be recorded= 12,500 x $38 = $475,000
Common stock value at par = 12,500 x $25 = $312,500
Add-in-Capital common stock value = $475,000 - $312,500 = $162,500
Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.
Answer:
$1,068.02
Explanation:
For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:
Given that,
Present value = $1,000
Rate of interest = 10% ÷ 2 = 5%
NPER = 3 years × 2 = 6 years
PMT = $1,000 × 8% ÷ 2 = $40
The formula is shown below:
= FV(Rate;NPER;PMT;-PV;type)
The present value comes in negative
So, after applying the above formula, the selling price of the bond is $1,068.02
Answer:
$60,500
Explanation:
With regards to the above, the write off does not affect the realizable value of accounts receivables. Also, the total asset or net income is not affected by the write off or specific account. Instead, both assets and net income are affected in the period when bad debt expense is predicted and then recorded with an adjusting entry.
Accounts receivables
$550,000
Less:
Allowance for doubtful account
($550,00 × 2.5%)
($13,750)
Estimated realizable accounts receivables
$536,250
If the amount of bad debt decreases or increases as given below, then the income is also increased or decreased by the amount given.
Bad debts = $13,750
Uncollectible previously written off = $8,800
Difference
$4,950
Net income
$60,500
Less:
Difference
($4,950)
Reported income
$55,550
Answer:
PERT ( Program Evaluation Review Technique)
Explanation:
PERT stands for Program Evaluation Review Technique. PERT charts are tools used to plan tasks within a project - making it easier to schedule and coordinate team members accomplishing the work.
PERT is a project management planning tool used to calculate the amount of time it will take to realistically finish a project.
Hence PERT is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project
