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3 years ago

The average price of milk increased from $3.00 last year to $3.50 this year. This is most likely due to:

2 answers:

6 0

Supply and demand. If the demand is high then the stores owners and milk company would probably up the price of the milk to make as much money as possible.

Hope this helps <3

Cloud [144]3 years ago

5 0

It could be caused by inflation. inflation is when currency value is low, making some tings more expensive.

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Naomi has just arrived for her first day at work at GloboTech, a large technology company. The first thing the hiring manager, E

Anna11 [10]

Answer:

orientation is the correct answer.

Explanation:

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3 years ago

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3 years ago

Read 2 more answers

An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply

sergey [27]

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

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3 years ago

Wild company purchased an asset. Wild used the Modified Accelerated Cost Recovery System (MACRS) to depreciate the asset for tax

Lady_Fox [76]

Answer:

The correct answer is A.

All other things being equal, in the early years of the asset's life, the amount of income shown on the tax return will be higher than the amount of income shown on the income state.

Here's why

Explanation:

In the United States, the Modified Accelerated Cost Recovery System (MACRS) is a depreciation system used for tax purposes.

It allows the capitalized cost of an asset to be recovered over a specified period via annual deductions. The MACRS system puts fixed assets into classes that have set depreciation periods.

This depreciation system allows an asset to be depreciated faster in the first years of an asset's life and slows depreciation later on. This is beneficial to businesses from a tax perspective.

This is logical, the less the value of an assets, the less the property tax applicable to it and so the company increases it's bottom line in tax savings whiles maximizing the useful life of the asset.

Cheers!

4 0

3 years ago

Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in f

Alexeev081 [22]

Answer:

issue $700,000 in 5 year bonds that pay 13% semiannual coupons (coupon = $45,500)

market interest rate 12%, so bonds will be sold at a premium

1) What was the issue price on January 1 of this year?

issue price = present value of face value + present value of interest payments

present value of face value = $700,000 / (1 + 6%)¹⁰ = $390,876
present value of annuity = $45,500 x {1 - [1 / (1 + 6%)¹⁰]} / 6% = $334,884

issue price = $390,876 + $334,884 = $725,760

journal entry to record issuance of the bonds:

Dr Cash 725,760

Cr Bonds payable 700,000

Cr Premium on bonds payable 25,760

2) What amount of interest expense should be recorded on June 30 and December 31 of this year?

amortization of bond premium June 30 = ($725,760 x 6%) - ($700,000 x 6.5%) = $43,546 - $45,500 = -$1,954

Journal entry June 30th, first coupon payment:

Dr Interest expense 43,546

Dr Premium on bonds payable 1,954

Cr Cash 45,500

amortization of bond premium December 31 = ($727,714 x 6%) - ($700,000 x 6.5%) = $43,663 - $45,500 = -$1,837

Journal entry December 31st, second coupon payment:

Dr Interest expense 43,663

Dr Premium on bonds payable 1,837

Cr Cash 45,500

3) What amount of cash should be paid to investors June 30 and December 31 of this year?

$45,500 per coupon payment

4) What is the book value of the bonds on June 30 and December 31 of this year?

Book value on June 30th:

Bonds payable $700,000

Premium on bonds payable $23,806

Book value on December 31st:

Bonds payable $700,000

Premium on bonds payable $21,969

7 0

3 years ago