All categories

3 years ago

The primary difference between product markets and factor markets is that

Business

1 answer:

Dennis_Churaev [7]3 years ago

7 0

Answer:

The primary difference between product markets and factor markets is that:

Product markets are markets related to products, goods, tangible finished items. This is where you'll get your product for sale and where people will buy it.

while

Factor markets are for the factors of production, mostly intangible, like labor, capital and entrepreneurial skills. This is what you'll use (including raw materials) to make your product.

You might be interested in

The Blumer Company entered into the following transactions during 2012: 1. The company was started with $22,000 of common stock

ahrayia [7]

Where is the question?

8 0

2 years ago

Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totali

eimsori [14]

Answer:

Marriott International

Journal Entries:

a. $300,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Cash $300,000

Sale of Assets $300,000

To record the cash receipts from the sale of assets.

No gain or loss on disposal.

b. $900,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $900,000

Credit Sale of Assets $900,000

To record the cash receipts from the sale of assets.

Sale of Assets $600,000

Gain on Disposal $600,000

To record the gain on the disposal of the furniture.

c. $100,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $100,000

Credit Sale of Assets $100,000

To record the cash receipts from the sale of assets.

Loss on Disposal $200,000

Sale of Assets $200,000

To record the loss on disposal of the furniture.

2. The disposal of an asset creates either a loss on disposal or a gain on disposal, which is normally regarded as a capital loss or a capital gain, as the case may be.

Explanation:

a) Data and Calculations:

Furniture (cost) ............................... $8,000,000

Accumulated depreciation .............. ...7,700,000

Net book value = $300,000

a. $300,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $300,000

Sale of Assets $300,000

b. $900,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $900,000

Sale of Assets $900,000

c. $100,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $100,000

Sale of Assets $100,000

8 0

2 years ago

You are valuing an investment that will pay you $28,000 per year for the first 4 years, $43,000 per year for the next 12 years,

shepuryov [24]

Answer:

The value of the investment to you today is $441,751.52.

Note: The correct answer is is $441,751.52 but this is not included in the option. Kindly confirm the correct answer again from your teacher.

Explanation:

This can be determined using the following 5 steps:

Step 1. Calculation of today's of $28,000 per year for the first 4 years

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV28,000 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV28000 = Present value or today's value of of $28,000 per year for the first 4 years = ?

P = Annual payment = $28,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 4

Substitute the values into equation (1) to have:

PV28,000 = $28,000 * ((1 - (1 / (1 + 0.12))^4) / 0.12)

PV28,000 = $85,045.78

Step 2. Calculation of today's of $43,000 per year for the next 12 years

Present value at year 4 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 4 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV at 4 = Present value at year 4 = ?

P = Annual payment = $43,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 12

Substitute the values into equation (2) to have:

PV at 4 = $43,000 * ((1 - (1 / (1 + 0.12))^12) / 0.12)

PV at 4 = $266,358.09

Therefore, we have:

PV43000 = PV at 4 / (1 + r)^n .............................. (3)

Where;

PV43000 = Present value or today's value of of $43,000 per year for the first 12 years = ?

PV at 4 = $266,358.09

r = Annual discount return rate = 12%, or 0.12

n = number of years = 4

Substitute the values into equation (3) to have:

PV43000 = $266,358.09 / (1 + 0.12)^4

PV43000 = $169,275.38

Step 3. Calculation of today's of $69,000 per year for the next 16 years

Present value at year 12 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 12 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (4)

Where;

PV at 12 = Present value at year 12 = ?

P = Annual payment = $69,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 16

Substitute the values into equation (4) to have:

PV at 12 = $69,000 * ((1 - (1 / (1 + 0.12))^16) / 0.12)

PV at 12 = $481,205.04

Therefore, we have:

PV69000 = PV at 12 / (1 + r)^n .............................. (5)

Where;

PV69000 = Present value or today's value of of $69,000 per year for the first 16 years = ?

PV at 12 = $481,205.04

r = Annual discount return rate = 12%, or 0.12

n = number of years = 12

Substitute the values into equation (5) to have:

PV69000 = $481,205.04 / (1 + 0.12)^12

PV69000 = $123,513.35

Step 4. Calculation of today's of $61,000 per year for the next 13 years

Present value at year 16 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 16 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (6)

Where;

PV at 16 = Present value at year 16 = ?

P = Annual payment = $61,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 13

Substitute the values into equation (6) to have:

PV at 16 = $61,000 * ((1 - (1 / (1 + 0.12))^13) / 0.12)

PV at 16 = $391,836.45

Therefore, we have:

PV61000 = PV at 16 / (1 + r)^n .............................. (7)

Where;

PV61000 = Present value or today's value of of $61,000 per year for the first 13 years = ?

PV at 16 = $391,836.45

r = Annual discount return rate = 12%, or 0.12

n = number of years = 16

Substitute the values into equation (7) to have:

PV69000 = $391,836.45 / (1 + 0.12)^16

PV69000 = $63,917.01

Step 5. Calculation of the value of the investment to you today

This can be calculated by adding the values above:

PV = PV28,000 + PV43000 + PV69000 + PV69000 = $85,045.78 + $169,275.38 + $123,513.35 + $63,917.01 = $441,751.52

Therefore, the value of the investment to you today is $441,751.52.

4 0

2 years ago

Might bring me a piece of paper

Charra [1.4K]

What do u mean by this

7 0

3 years ago

Read 2 more answers

If a corporate bond is issued with a coupon rate that varies directly with the required return, the price of the bond will

dedylja [7]

The answer to this question is that the price of the bond will be equal to the face value.

<span>Bonds are type of investments in which the investor can receive money on the investment with a fixed interest. Bonds are also known as fixed income securities. This type of investment is less risky because the insurer will return the face value of the investment and interest from the investment is in a fixed rate.</span><span> </span>

4 0

3 years ago