Answer:
The accounting profits are $100, and the economic profits are $25
The option C. is correct
Explanation:
Accounting profit: The accounting profit is computed by subtracting the sales amount with the expenses.
In mathematically,
Accounting profit = Sales revenue - expenses
= $150 - $50
= $100
In this, the expense is the seeds cost
And, the economic profit is calculated by subtracting the accounting profit with the implicit cost
In mathematically,
Economic profit = Accounting profit - implicit cost
= $100 - $75
= $25
The implicit cost is computed by
= Per hour piano charges × number of hours
= $15 × 5
= $75
Hence, the accounting profits are $100, and the economic profits are $25
Answer:
B) How does the action I am proposing to take make me feel about myself?
Explanation:
According to Norman Peale (the ideologist of positive thinking), decisions that affect or solve ethical dilemmas should be evaluated against three questions:
- My decision will follow the law and the company's policies?
- Is the decision balanced and fair?
- How does this decision made make me feel about myself?
Answer and Explanation:
The Journal entry is shown below:-
Bonds payable Dr, $1,800,000
(1,800 × $1,000)
To Discount on bonds payable $30,000
To Common stock $720,000
(1,800 × 40 × $10)
To Paid-in-capital in excess of par $1,050,000
(Being conversion of bond into common stock is recorded)
Therefore for recording the conversion using the book value approach we simply debited the bonds payable and credited the discount on bonds payable, common stock and paid-in-capital in excess of par.
Answer:
8.21%
Explanation:
The computation of the coupon rate is given below:
But before that PMT would be determined
Given that
NPER 25
RATE 7.28%
PV $1,105.63
FV $1,000
The formula is shown below:
=PMT(RATE,NPER,PV,FV,TYPE)
The present value comes in negative
After applying the above formula, the PMT is $82.09
Now the coupon rate is
= $82.09 ÷ $1,000
= 8.21%
