Answer:
The equilibrium price falls and quantity increases
Explanation:
When the supply of food rises without a corresponding increase in demand , there would be an excess supply.
When there's excess supply, prices fall and the quantity produced rises.
I hope my answer helps you
Answer:
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
Explanation:
IAS 2 requires inventory to be measured at the lower of cost or net realizable value.
In our case the inventory will be valued at net realizable value of $230,000 because this is lower.
The effect with this is :
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
The depreciation expense will be credited for $750 in the consolidating entries while preparing the 20X8 consolidated income statement,
<h3>What is the
depreciation expense?</h3>
This refers to the cost of an asset that has been depreciated for a single period such as in that year.
Depreciation expense = Cost - Salvage value / Useful life
Depreciation expense = $36,000 - $33,000 / (2 years (semi-annual charges)
Depreciation expense = $3,000 / 4
Depreciation expense = $750
Therefore, the depreciation expense will be credited for $750 in the consolidating entries while preparing the 20X8 consolidated income statement,
Read more about depreciation expense
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Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
