Answer:
sunk cost.
Explanation:
Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered. Thus, because a sunk cost has been incurred by an individual or organization it can't be recovered and as such it is irrelevant in the decision-making process such as investments, projects etc.
Basically, sunk costs are referred to as fixed costs.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, a cost incurred in the past that is not relevant to any current decision is classified as a sunk cost.
For example, ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
I believe it’s Involuntary Turnover. There’s a Quizlet that uses this exact same scenario that defines it as Involuntary Turnover
Common stock is a corporate owned equity. Common stock shareholders have a right to the company's assets after all bondholders, preferred stock/shareholders and other debt holders are paid first and in full. Preferred stock has the owner entity to a fixed amount of money. Those that are preferred shareholders/stockholders receive money before any common stock holders do. They have a higher claim on assets and company earnings.
Total pay for this week = $16*40 + $16*1.75*10 = $920
Prior Gross pay = 23,200
Total Gross pay = 920 +23,200 = $24,120
Social security = 0.06*24,120 = $1,447.20
Medicare = 0.015*24,120 = $361.80
Federal Tax withheld = $212
Total deductions = 1447.20 +361.80+212 = 2,021
Total Net Pay = 24,120 -2,021 =$22,099
