Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000
<span>Joneen gave Sue a cartway claim to access her own property across a portion of Joneen's property. This type of easement allows an individual to access their property via another, privately owned parcel for the purposes of accessing landlocked property.</span>
Answer:
$137,200; $103,600
Explanation:
In 2015:
Free cash flow:
= Net cash flow from operating activity - Capital expenditure
= $294,000 - (70% × $224,000)
= $294,000 - $156,800
= $137,200
In 2016:
Free cash flow:
= Net cash flow from operating activity - Capital expenditure
= $280,000 - (70% × $252,000)
= $280,000 - $176,400
= $103,600
To record the retirement of bonds we have to debit the bond payable account with $435,376, debit the interest account with $22,914, and credit the cash account with $458,290.
The retirement of the bond takes place when they are required to be redeemed before they mature. In other words, if the company wants to buy back its bonds before the period of the bond is over. Sometimes the company will also have to pay the interest amount that is due on the bond to the bond-holder.
The bondholders are creditors of the company. These are the people to have loaned money to the company and who the company has to pay back either at maturity or when the company wants. This should be specified to the bondholder before issuing him the bond. The transaction that will be written to record the transaction will be:
Bonds Payable a/c Dr. 435,376
Interest a/c Dr. 22,914
To cash a/c 458,290.
(Being the bonds retired and interest amount paid)
Learn more about the retirement of bonds here:
brainly.com/question/13960495
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