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vekshin1
3 years ago
6

Adamis the owner/operator of a flower shop. Last year he earned $250,000 in total revenue. His explicit costs were $175,000 paid

to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources). During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year. Which of the following is true about Adam's accounting and economic profit?
A. Accounting profit = $175,000; economic profit = $75,000.
B. Accounting profit = $75,000; economic profit = negative $100,000.
C. Accounting profit = $0; economic profit = negative $75,000.
D. Accounting profit = $75,000; economic profit = $0.
Business
1 answer:
Degger [83]3 years ago
4 0

A is the correct answer

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Kelly inherits land that had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2019, the date o
expeople1 [14]

Answer:

A. ($1,000).

Explanation:

In the question, it is given that the fair market value of the land is $49,000 and the selling value is $48,000. So, in the given situation the selling value of the land is less than the fair market value which reflect the loss of $1,000

The $1,000 is come by subtracting the selling value and the fair market value

All other information is not relevant for the computation part. Hence, ignored it

8 0
3 years ago
On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at 101. Interest is payable ann
adell [148]

Explanation:

The journal entries are shown below:

1. Cash A/c Dr  $ 5,050,000

             To Bonds payable A/c $5,000,000

             To Premium on Bonds payable A/c $50,000

(Being bond is issued)

2. Interest Expense A/c Dr $3,97,500

   Premium on bonds payable A/c  $2,500        ($50,000 ÷ 20)

                    To Interest payable A/c           $400,000       ($5,000,000 × 8%)

(Being the interest expense is recorded)

7 0
3 years ago
Goodman Company's inventory records show the following data: Units 5,000 4,500 3,000 Unit Cost $9.00 8.20 7.00 Inventory, Januar
balu736 [363]

Answer:

A. 3000 units x $7 = $21000

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the stock that is purchased first is used first. In other words, the oldest stock is used first. This is common for perishable items which if not used up fast, will be wasted.

Jan 01 - Beginning inventory : 5000 units x $9 = $45000

Jun 18 - Purchases : 4500 units x $8.20 = $36900

Nov 08 - Purchases : 3000 units x $7 = $21000

Total inventory = 5000 + 4500 + 3000 = 12,500 units

Ending inventory = 3,000 units

Hence, inventory sold = 9,500 units

The cost of goods sold using FIFO:

5000 units x $9 = $45000

4500 units x $8.20 = $36900

COGS = $45000 + $36900 = $81900 (9500 units)

Ending inventory :

3000 units x $7 = $21000 (3000 units)

8 0
3 years ago
hudson corporation will pay a dividend of $2.80 per share next year. the company pledges to increase its dividend by 7.40 percen
trapecia [35]

Option d. $35.00 is the share price that one should pay for the stock today to get the required return

The share price, or the price you will pay for the company's stock right now, can be calculated using the necessary rate of return calculation, the formula is as follows:

RRR=(EDP/SP)+DGW

where;

RRR=required rate of return

EDP=expected dividend payment from share

SP=share price

DGW=dividend growth rate

In our case:

RRR=15.40%=15.4/100=0.154

EDP=$2.80

SP=unknown

DGW=7.40%=7.40/100=0.074

Substituting the values in the formula we get the following:

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(0.154-0.074)=(2.80/SP)

0.08=2.80/SP

SP=2.80/0.08

So, the share price of the stock=$35

Learn more about dividends:

brainly.com/question/28044310

#SPJ4

3 0
1 year ago
Select the correct answer from each drop-down menu. What is the basis for the calculation of interest payable by various financi
arlik [135]

Answer:

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Explanation:

Financial institutions is a company or a firm that deals with financial and monetary activities such as; loans, deposits, investments and currency exchange. Most financial transactions especially loans and savings usually have an interest rate that is set by the financial institution. The amount of interest can be paid by the borrower in a case where an individual takes a loan from the financial institution. Interest can also be paid by the financial institution in a case where the individual or group opens a savings account with the financial institution. In both cases, the interest rate is set by the financial institution. The amount of interest payable can be determined using the formula below;

A=PRT

where;

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R=interest rate

T=number of years

The interest payable is calculated based on the principal, interest rate, number of years of the loan or of the deposit.

3 0
3 years ago
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