Answer:
The Journal entries are as follows:
(i) On January 1, 2017
Plant Assets A/c Dr. $600,000
To cash $600,000
[To record the depot]
(ii) On January 1, 2017
Plant Assets A/c Dr. $41,879
To To Asset retirement obligation $41,879
[To record the Asset retirement obligation]
Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.
Answer:
FV= $44,269.11
Explanation:
<u>First, we need to calculate the future value of the lump-sum deposit of $20,000:</u>
<u></u>
FV= PV*(1 + i)^n
FV= 20,000.01*(1.05^11)
FV= $34,206.8
<u>Now, the future value of the $800 annual deposit:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {800*[(1.05^10) - 1]} / 0.05
FV= $10,062.31
<u>Finally, the total future value:</u>
FV= $44,269.11
Answer: The break-even point is 66 units.
Explanation:
The break-even point can be found by dividing total fixed costs by the difference between selling price and variable cost.
(fixed cost) / (sale price - variable cost)
1980 / (50 - 20) = 66 units
Salt & Battery must sell 66 units of product before breaking even.
Answer:
a.total revenue is maximized
Explanation:
Marginal revenue refers to the change in total revenue. Zero marginal revenue impllies no change in TR. Thus, only when TR is maximized will MR be zero before falling.
Answer:
b. a natural response to a sudden increase in demand.
Explanation:
Price gouging -
It refers to the situation , when the seller increases the price of his services and goods to a very high level , which is a unethical situation , is referred to as price gouging .
The situation of price gouging , is very commonly observed in any natural disaster , where due to shortage of foods and other item , the price of the food increases to a very high price , is referred to as price gouging .
Hence , from the question,
The correct option is b.
