Sustainability as a factor for evaluating a market segment is seen in the given scenario. Sustainability means understanding the interconnections among economy, society, and environment and considering the social, environmental and economic demands while making the business.
Answer: The price of peanuts realitve to that of raisins must be 2.
Explanation: Mathematically, relative prices are defined as:
Relative price of Good A with respect to Good B = Price of A / Price of B
So: Relative price of peanuts respect to raisins = Price of peanuts / Price of raisins
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<u>Relative price of peanuts respect to raisins = 4 / 2 = 2.</u>
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Answer:
$1,000
Explanation:
The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50
If the market value rises to $22,000, the account will show
Long market value - Debit = Equity % SMA
$22,000 - $10,000 = $12,000
Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $ 5,050,000
To Bonds payable A/c $5,000,000
To Premium on Bonds payable A/c $50,000
(Being bond is issued)
2. Interest Expense A/c Dr $3,97,500
Premium on bonds payable A/c $2,500 ($50,000 ÷ 20)
To Interest payable A/c $400,000 ($5,000,000 × 8%)
(Being the interest expense is recorded)
Answer:
$9.6 million
Explanation:
The amount Laramie would record in its books of account in respect of the land acquisition cost is the sum of the cash paid now and the notes payable .
That effectively gives acquisition cost of $9.6 million ($2.9 million+$6.7 million).
The interest payable on the notes payable of $6.7 million would be treated as expense in the income statement of years 2021 and 2022 respectively without being added to the acquisition cost since it is a revenue expense and should not be capitalized.
