Answer:
1. Time spent away from family is an implicit cost.
2. Transportation is an explicit cost
3. Forfeited working experience is an implicit cost
4. Books and materials is an explicit cost
5. Forgone earnings are an implicit cost
Explanation:
A college is an educational institution that provides opportunities for higher learning and specialized professional training. A decision to go to college should be conscious one that takes into consideration all the important aspects. The most important consideration is the cost of education, since attending college is usually an expensive proposition. One needs to consider the different costs that they will meet, whether implicitly or explicitly. Lets us consider the following implicit and explicit costs as shown;
1. Implicit cost: an implicit cost is a cost incurred without necessarily spending money. They are more of an opportunity cost that is calculated from the alternatives undertakings that one has sacrificed. An implicit cost is not an accounting cost but an economical cost that tends to consider options that are not actual expenditures. They are; time spent from family, forfeited working experience and forgone earnings. These are actually items that one sacrifices when he/she decides to go to college. Time spent from family is an implicit cost since one will spend most of his or her time in college. Attending college also means that one wont be able to go for a job and get some working experience while earning, therefor this is also an implicit cost. Explicit cost are determined by estimating the value of the activity sacrificed.
2. Explicit costs: an explicit cost is a type of accounting cost that needs one to actually spend money. It is an out of pocket cost where one has to use money to purchase a good or service. Examples are Books and materials. College students are often required to purchase specific books and materials for study. Transportation is also a cost that requires one to spend on bus fare or even cab fare to and from college. These are costs that require one to actually use money.
Time value of money <span>it's best to have money today, so it can be put to work sooner to make even more money. When you have money now, you can invest and start building </span>interest on it. The quicker you have money, the quicker you start to grow your money and the sooner it can double, triple etc.
Answer:
$450,000
Explanation:
Theodore Enterprises had the following pretax income (loss) over its first three years of operations:
2016 $ 500,000
2017 (900,000 )
2018 1,500,000
For each year there were no deferred income taxes and the tax rate was 30%. In its 2017 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2017.
Therefore Theodore's income tax expense for 2018 is 30% x 1,500,000 = $450,000
Loss carry back is when a business elects to net off losses against a previous year's return as opposed to loss carry forward which is the future years' return.
Answer:
$123,630.2
Explanation:
Harding Corporation
33%× $1,520,000=$501,600
$501,600-$18,000=$483,600
$483,600/$1,060,000 units
=$0.4562
=45.62 per unit
$0.4562x 271,000 units = $123,630.2
Or
($501,600 cost of equipment (33% of $1,520,000 purchase price) minus $18,000 salvage value) / $1,060,000 units = $0.4562 per unit.
$0.4562x 271,000 units = $123,630.2
Therefore the amount below which is closest to the amount Harding will record for depreciation expense for the equipment in the first year is $123,630
Answer: B- Liquidity Trap
Explanation:
Liquidity trap is an economic situation in which monetary policy becomesineffective due to low interest rates and high savings rates.
Bonds have an inverse relationship to interest rates, therefore consumers would want to keep Thier funds in cash believing that interest rate may soon rise in near future
At the same time, central bank efforts to increase economic activity are terminated as they are unable to lower interest rates to provide incentives to investors and consumers and without demand, businesses would not grow.
Here, in the case of Japan, the central bank reduced real interest rates to zero percent, but investment spending did not respond enough to bring the economy out of recession making Japan experience Liquidity Trap
