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3 years ago

A change in income preferences or prices of other goods or services leads to a that causes a:______

Business

1 answer:

exis [7]3 years ago

7 0

Answer:

change in demand; shift of the demand curve.

Explanation:

We know that income elasticity of demand derives by considering the percentage change in quantity demanded and percentage change in income

In mathematically,

Income elasticity of demand = (percentage change in quantity demanded) ÷ (percentage change in income)

By considering the above information, the change in income preferences is due to change in demand plus it also shift of the demand curve

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Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X

UkoKoshka [18]

Answer:

$34,789

Explanation:

Worth of stocks = $35,000

Incremental value of the acquisition = $2,500

Stock outstanding of Firm X = 2,000

Price per share of Firm X = $16

Stock outstanding of Firm Y = 1,200

Price per share of Firm Y = $40

Now,

Number of shares issued = 35,000 ÷ 40

= 875 shares

Value after merger = (Value of Stock x + Value of Stock Y + Synergy)

= (1200 × 40) + (2000 × 16) + 2500

= $82,500

Number of Stock Outstanding after merger = ( 1,200 + 875 )

= 2,075

Thus,

Value per share after merger = $82500 ÷ 2,075

= 39.759

Therefore,

Actual cost of acquisition

= Value per share after merger × Number of shares issued

= 875 × $39.759

= $34,789

5 0

3 years ago

Gonzo Co. owns a building in Georgia. The buildingâ€™s historical cost is $970,000, and $440,000 of accumulated depreciation has

ladessa [460]

Answer:

1. The cost to be capitalized to building account is $343,600

2. The subsequent carrying amount of the building is $873,600

Explanation:

1. In order to calculate the which of the costs incurred by Gonzo Co. should be capitalized to the building account we would have to use the following formula:

cost to be capitalize=Major improvement to the plumbing+Added a loby

cost to be capitalize=$109,000+$234,600

cost to be capitalize=$343,600

The cost to be capitalized to building account is $343,600

2. To calculate the subsequent carrying amount of the building we have to use the following formula:

subsequent carrying amount=Historical cost+improvements-Accumulated Depreciation

subsequent carrying amount=$970,000+$343,600-$440,000

subsequent carrying amount=$873,600

The subsequent carrying amount of the building is $873,600

5 0

3 years ago

The following information is available for Fuller Manufacturing Company for the month ending October 31:_______.

denis23 [38]

Answer:

$6,625,000

Explanation:

Direct material $1,323,600

Direct labor. $1,680,000

Total factory overhead. $3,544,200

Add: Opening work in process inventory $455,300

Less: Closing work in process inventory ($378,100)

Costs of goods manufactured $6,625,000

8 0

2 years ago

Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig

marshall27 [118]

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

(B) A fixed exchange rate regime provides certainty about the value of a currency, for example, when the exchange rate between Philippine Pesos and Arab Emirate Dollars is fixed at 10PHP - 1AED, traders in this currency will be certain that at any planning time in business, investment or consumption, 10 PHP will be equal to 1 AED.

(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

8 0

2 years ago

What is a toxic leader?

andriy [413]

A selfish leader that lets his/her desires above the good of their people.

7 0

3 years ago

Read 2 more answers