Answer:
The investment in Son Corp. should be reported on Pops' December 31, 2018 balance sheet at $1,920,000 ($10 * 192,000).
Explanation:
There is no indication that the fair price of the shares of Son Corp. has changed from its original cost of $10. Therefore, the investment in Son Corp. can only be reported on the balance sheet of Pops' at the cost price on acquisition. But, assuming that the price has fluctuated over the period, the investment would have been valued at the current market price multiplied by the number of shares.
<u>Solution and Explanation:</u>
The yYearly Equal Cash Inflows =
= 46000
Present Value of Inflows at the rate of 10% =
= 46000 multiply with 3.791 = 174386
NPV = 174386 minus 132500 = 42386
<u>
Briggs must make an investment in the project as it generates additional wealth and NPV is positive
</u>
For NPV = 0, PV of inflows = 132500
PV Of Inflows = Annual Cash Flow multiply with 3.791
Annual Cash Flow = 132500 divide by 3.791 = 34951.20
So, Hours =
= 1193.08 hours
Answer:
The economic incentive was to produce enough to meet the output target, without regard for quality or cost.
Explanation:
As the only condition for the payment to the producers is linked with the output thus there is no constraint for the quality and the sales of the product. This indicated that the producer will get the reward irrespective whether the quality or cost of the product is feasible or not.
Answer:
D.
Revenues to be understated
Explanation:
Understated amounts indicate a reported amount is not correct and the reported amount is less than the true amount.
Answer:
Option A
Explanation:
The expenditure limit reflects the profits of a customer, so efficiency happens when customers may reach the lowest potential curve of disregard towards their income bracket. In other terms, there will be less use of another product, when more of that item is eaten.
Thus, if we carefully focus then we can realize that the whole point of doing customer optimization is to make sure that customer gets clear about their preferences.