<h2>Answer</h2>
Buy on Credit
<h3>Explanation</h3>
When in a liquidity problem and items have to be bought, buying on credit seems to be the best option. Buying on credit allows immediate ownership of required items whereas the money can be paid later as per the credit policy and terms. This permits the consumer to take the advantage of item ownership with delayed payment hence double advantage.
Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends <u>$120,000 </u> (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding <u>600,000 </u>
Basic Earnings per share for 2021 <u>$2.47 </u>
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b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
Answer:
When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.
Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.
If the Marginal Cost is instead higher, the decision would most probably be cancelled.
Answer:
The depreciation for 2020 is $233.33
Explanation:
Under the MACRS, computer useful life is 5 years.
The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.
As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33
