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2 years ago

explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist.

1 answer:

8 0

A price ceiling is the maximum price a company is allowed to charge for that good. This is intended to assist the consumers so that they would not have to be an insane amount for a product.

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Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be ca

ivanzaharov [21]

Answer:

1. Repainted the office building: This should be capitalized.

2. Added a new wing onto the office building: This should be capitalized.

3. Took their fleet of cars in for servicing (changing the oil, etc.).: This should be expensed.

5. Had an engine rebuilt in one of their fleet cars: This should be capitalized.

4. Added newer electronic locks on the doors in the production building: This should be expensed.

Explanation:

1. Repainted the office building: This should be capitalized. This is because repainting is a repair that will restore the physical structure of the office building and significantly improve it. Since it is a capital improvement cost, it should be capitalized and depreciated like other fixed assets.

2. Added a new wing onto the office building: This should be capitalized and depreciated like other fixed assets since it is a capital expenditure that significantly added to the structure of the office building.

3. Took their fleet of cars in for servicing (changing the oil, etc.).: This falls under repair and should be expensed.

4. Added newer electronic locks on the doors in the production building: This should be expensed. Cost of locks and keys are ordinary expenses that do not improve the physical structure of the production building.

5. Had an engine rebuilt in one of their fleet cars: This should be capitalized. It is a tangible improvement to the fleets of cars and this kind of costs fall under capital expenditures.

8 0

3 years ago

Read 2 more answers

Active/passive she is watering the plants

Alja [10]

Answer:

active

Explanation:

she "is" means she is currently watering the plants. if it was passive it would have been like this, "she watered the plants".

4 0

2 years ago

Why are high-tax-bracket investors more inclined to invest in municipal bonds than are low-bracket investors?

Anika [276]

The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states. Therefore, the higher the tax bracket that the investor is in, the more valuable the tax-exempt feature to the investor.

4 0

2 years ago

A company purchased a piece of equipment for $50,000 and the equipment has an expected useful life of five years. Its residual v

Simora [160]

Answer:

$12,000

Explanation:

Given that,

Cost of equipment = $50,000

Expected useful life = 5 years

Estimated residual value = $4,000

Depreciation refers to the fall in the value of fixed assets with the passage of time.

Here, we are using double-declining-balance depreciation method,

Firstly, we are calculating the straight line depreciation rate as follows:

= (100% ÷ useful life)

= (100% ÷ 5)

= 20%

So, the double-declining depreciation rate is calculated by multiplying the straight line depreciation rate by 2. It is calculated as follows:

= 2 × straight line depreciation rate

= 2 × 20%

= 40%

First year depreciation is calculated as follows:

= Double-declining depreciation rate × Cost of equipment

= 40% × $50,000

= $20,000

Therefore, the amount of depreciation expense for the second year is calculated as follows:

= Double-declining depreciation rate × (Cost of equipment - First year depreciation)

= 40% × ($50,000 - $20,000)

= 0.4 × $30,000

= $12,000

5 0

2 years ago

When the government of any country restricts the sale of a particular commodity to certain groups — for example, restricting sal

Alla [95]

Answer:

qualified available

Explanation:

Qualified available Market refers to the situation when only customers with specific criteria are able to make a purchase. In most cases, those criteria revolved around age, gender, or group membership.

Alcochol is an example of qualified available market because it created a situation which only allow consumers older than 21 to make a purchase.

Other example would be Waxing salon. Large portion of waxing salons only allow female customers to purchase their service (since the workers are also females and feel uncomfortable to give their service to male customers.)

8 0

3 years ago