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4 years ago

Which statement best defines the term principal?

2 answers:

7 0

The correct answer for the given question above would be option C. The statement that best defines the term principal is the original amount of money the bank loans the borrower. It is the total amount of money borrowed, which is separate from the interest.

Ilya [14]4 years ago

5 0

C is the answer......

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Darnell lives in Dallas and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. O

evablogger [386]

Answer:

1. The wages and utility bills that Darnell pays.

286,000 explicit cost (accounting)

2. The rental income Darnell could receive if he chose to rent out his showroom.

3,000 x 12 months = 36,000 implicit cost (economic)

3. The salary Darnell could earn if he worked as a financial advisor.

20,000 implicit cost (economic)

4. The wholesale cost for the guitars that Darnell pays the manufacturer.

704,000 explicit cost (accounting)

Explanation:

The explicit cost are those which occurs and are represented in the accounting.

While the implicit cost represent the opportunity cost which is the best alternative rejected for taking the current course of action. They are considered for the economic profit

8 0

3 years ago

QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each altern

sladkih [1.3K]

Answer:

The differential revenue is equal to $25,000.

Explanation:

Differential revenue is the difference in revenue that may occur due to different course of actions.

Here, the projected revenue of Alternative A is $125,000.

And, the projected revenue of Alternative B is $150,000.

The differential revenue can be found by calculating the difference between these two.

Differential Revenue

=$150,000-$125,000

=$25,000

So, the differential revenue for this decision will be $25,000.

5 0

3 years ago

Parrett Corp. acquired one hundred percent of Jones Inc. on January 1, 2018, at a price in excess of the subsidiary's fair value

valina [46]

Answer:

Consolidated Balance for the Equipment = $527,000

Explanation:

given data

January 1, 2018

Parrett book value = $360,000

fair value = $480,000

Jones book value = $240,000

fair value = $350,000

December 31, 2018

Parrett book value of $250,000

fair value of $400,000

Jones book value = $200,000

fair value = $320,000

solution

we Consolidate here Balance for the Equipment that is as

first we take Jones 's Equipment that is

Jones 's Equipment = $350,000 - $240,000

Jones 's Equipment = $110,000.00 ....................1

and

Parrett Equipment Book value = $250,000.00 ..............2

Jones Equipment Book Value = $200,000.00 ................3

so that Excess Amortization will be

Excess Amortization = ( $110,000 ÷ 10 years ) × 3 year

Excess Amortization = $33,000.00 ...................4

Consolidated Balance for the Equipment will be

Consolidated Balance for the Equipment = $110,000.00 + $250,000.00 + $200,000.00 - $33,000.00

Consolidated Balance for the Equipment = $527,000

4 0

3 years ago

If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total

vovikov84 [41]

If the government agreed to purchase the surplus output and introduced a guaranteed price floor of $40, then most likely the government <span>'s total support payments to producers would be $4000 per week. We have a 180 quantity demanded and we have 280 quantity supplied, we will get the surplus by subtracting the supply by demand. So, 280 - 180 = 100 x price of 40 = 4000.</span>

8 0

3 years ago

Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $11 million. Bowen owe

givi [52]

Answer:

A. $1,510,000

B. -$10,000

Explanation:

a. Calculation to determine Bowen’s Accounting profits

Using this formula

Accounting profits = Total revenue - Explicit cost

Let plug in the formula

Accounting profit = $10 million - $8 million - $40,000 - $400,000 - $50,000

Accounting profit= $1,510,000

Therefore Bowen’s Accounting profits is $1,510,000

b. Calculation to determine Bowen’s Economic profit

Using this formula

Economic profits = Accounting profit - Implicit cost

Let plug in the formula

Economic profits = $1,510,000 - [($11,000,000*0.1) + $30,000 + ($60,000 - $40,000)]

Economic profits =$1,510,000 - [$1,100,000+ $30,000 + $60,000 - $40,000)]

Economic profits =$1,510,000-$1,150,000

Economic profits =-$10,000

Therefore Bowen’s Economic profit is -$10,000

4 0

3 years ago