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2 months ago

you make a clay pot for $10 and sell it to a customer for $40. what is your economic surplus associated with the transaction?

Business

1 answer:

Bess [88]2 months ago

3 0

The transaction's surplus in terms of the economy $30

<h3>Which principle states that the next-best choice you must forego in order to have something is its true cost?</h3>

The idea of opportunity cost, which states that the opportunity lost as a result of a decision, determines the true cost of an economic decision, is closely tied to the principle of substitution.

<h3>What is a sunk cost, give an example, and explain why it doesn't matter when deciding what to do in the future?</h3>

Sunk costs are viewed as bygone in economic decision-making and are not taken into account when determining whether to continue an investment project. Spending $5 million to establish a plant that is expected to cost $10 million is an example of a sunk cost.

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The manager of Steve's Audio has approved Daisy's application for 24 months of credit with maximum monthly payments of $45. If t

zimovet [89]

The correct answer is e

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2 years ago

Mary offers to buy Hal's desktop computer for $400. Hal sends Mary an e-mail of acceptance. The $400 is to be paid upon Hal's de

GenaCL600 [577]

Answer:

A. This is a bilateral, valid, executory contract

Explanation:

As in the given scenario, the offer and acceptance is made between the Mary and Hal which reflect the valid contract as in this both parties have expresses to enter into a contract

Plus, it is a bilateral contract in which both parties agree to do his/ her positions.

And, it is also an executory contract in which the contract is completed at some future i.e in this case the contract is completed when delivery and payment are made.

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2 years ago

If you have a questioned item on your travel account bill, with whom do you first try to resolve it?

Luda [366]

If you have a questioned item on your travel account bill, the first person you should contact in this situation is: The merchant
Before you contact the producer of the card,you need to make sure that:
- The merchant did not falsely include the unknown item in your purchasing price, or
- YOU include the unknown item but you forget about it

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2 years ago

Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesse

FromTheMoon [43]

Answer:

cash 2,011,446 debit

unamortized bond cost 50,000 debit

bonds payable 2,000,000 credit

premium on BP 61,446 credit

--to record issuance--

# Beg. Carrying //cash // expense //Amortization// End.Carrying Value

1 2,061,446 210,000 206144.57 3855.43 2,057,590

2 2,057,590 210,000 205759.02 -4240.98 2,053,349

3 2,053,349 210,000 205334.93 -4665.07 2,048,684

4 2,048,684 210,000 204868.42 -5131.58 2,043,553

5 2,043,553 210,000 204355.26 -5644.74 2,037,908

Bonds payable 1,000,000 debit

premium on BP 24,342 debit

issuance cost expense 25,000 debit

interest expense 51,217.1 debit

loss at redemption 41.959,9‬ debit

cash 1,117,500 credit

unarmortized bond issuance cost 25,000 credit

Explanation:

First, we solve the value collected which is the present value of the coupon payment and maturity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 210,000.000

time 10

rate 0.1

$210000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\$

PV $1,290,359.0922

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 2,000,000.00

time 10.00

rate 0.1

$\frac{2000000}{(1 + 0.1)^{10} } = PV$

PV 771,086.58

PV c $ 1,290,359.0922

PV m $ 771,086.5789

Total $ 2,061,445.6711

Now, we solve for the premium

2,061,446 - 2,000,000 = 61,446 premium

the interst expense will be calcualte as carrying value times market rate

the cash will be the same for every period thus 210,000

Finally, the difference will be the amortizationon the premium

If redem on July 1st 2016 we need to record the interst:

2,048,684 x .05 = 102.434,2/2 = 51.217,1

cash interest: 1,000,000 x 10.5% / 2 = 52,500

<em>Total cash</em>

52,500 interest

<u>1,065,000 bonds </u>

1,117,500

portion of unamortized cost 25,000

face value 1,000,000

portion of premium: 48,684/2 = 24.342‬

the loss f redemption will be the difference between the interest expense, amoritzation on premiun and write-off of the face value with the amount of cash outlay.

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2 years ago

c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,281 receivable from a ba

maria [59]

Answer:

Tabor

The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.

Explanation:

The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281. The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for. This gives a more accurate picture of Tabor's financial performance during the current financial period.

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2 years ago