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4 years ago

The production possibilities curve:

Business

1 answer:

Vinil7 [7]4 years ago

7 0

Answer:

The correct answer is option C.

Explanation:

The production possibility frontier shows the maximum possible bundles or combinations of two goods that can be produced using the given resources completely.

All the points on and below the frontier are attainable. The points above the frontier are unattainable as they need more resources.

The points below the frontier though attainable are inefficient, this is because all the resources are not being used.

So we can say that the production possibility curve is a frontier between a combination of two goods that are attainable and that are not attainable.

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Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor recei

Sliva [168]

Answer:

1. $163,800

2. Dr Cash $ 89,000

Dr Notes receivable $ 671,000

Cr Deferred revenue $ 760,000

3. $ 607,120

Explanation:

1. Computation of the amount that Monitor would calculate as the stand-alone selling price

Total amount of franchise agreement $760,000

Less: stand-alone selling price of training $ (18,200)

Less: stand-alone selling price of building and equip $ (578,000)

Stand-alone selling price of five-year right $163,800

2. Preparation of journal entry that Monitor would record on July 1, 2016,

Dr Cash $ 89,000

Dr Notes receivable $ 671,000

(760,000-89,000)

Cr Deferred revenue $ 760,000

3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,

Revenue to be recognised on:

1st Sep 2021:

Training $ 18,200

Building and Equipment sale $ 578,000

31st Dec 2021:

$163,800/60 Months*4 Months $ 10,920

Total Revenue to be recognized $ 607,120

Note that five-year will give us 60 months (5*12months and September to December will give us 4 months

6 0

3 years ago

E-eyes.com has a new issue of preferred stock it calls 20/20 preferred. the stock will pay a $20 dividend per year, but the firs

Sophie [7]

The price of the stock 19 years from now would be the present value of all the dividends to be paid starting year 20. Here, to compute the PV of the dividends, we can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time.

Value of the stock after 19 years = Dividend year 20/ required return

= $20 / 0.0725

= $275.86

7 0

3 years ago

Both Canada and the United States produce lumber and footballs with constant opportunity costs. The United States can produce ei

ahrayia [7]

Geifoiwbcuue. Viiexivet. Rdvh

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2 years ago

"During the current year, Stern Company had pretax accounting income of $48 million. Stern's only temporary difference for the y

Naddik [55]

Answer:

$59 milliom

Explanation:

Calculation to determine what Stern's taxable income for the year would be:

Using this formula

Stern's taxable income=Accounting income +Rent received temporary difference

Let plug in the formula

Stern's taxable income=$48 million+ $11 million

Stern's taxable income=$59 million

Therefore Stern's taxable income for the year would be:$59 million

5 0

3 years ago

The process of determining the probability that potential customers will not pay is called:

DENIUS [597]

The process of determining the probability that potential customers will not pay is called <u>"credit analysis".</u>

Credit analysis is a sort of analysis an investor or bond portfolio chief performs on organizations or other obligation issuing substances to gauge the element's capacity to meet its obligation commitments. The credit investigation looks to recognize the suitable dimension of default chance related with putting resources into that specific substance.

The result of the credit analysis will figure out what hazard rating to appoint the obligation guarantor or borrower. The hazard rating, thus, decides if to stretch out credit or advance cash to the obtaining substance and provided that this is true, the sum to loan.

5 0

3 years ago