Answer:
-$1,500
Explanation:
Calculation for the economic profit earn
Using this formula
Economic profit =Investment amount ×(Return on investment-Current interest rate)
Let plug in the formula
Economic profit =$50,000×(0.05 - 0.08)
Economic profit =$50,000×(-0.03)
Economic profit = -$1,500
Therefore you earn an economic profit of -$1,500
In a case whereby creden follows all procedural steps in conveying his property to adam. however, the deed does not state what type of interest is transferred to adam, the type of estate does adam own is A life estate, if that is what they agreed upon.
<h3>What is a life estate?</h3>
A life estate can be described as the estate that is been created by a deed that gives the land to the person "for life.
It should be noted that in this type of estate then there is usually the identification of what should happen to it after that person dies.
Therefore, the second option is correct.
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missing options:
A conditional estate, since there is a discrepancy.
A life estate, if that is what they agreed upon.
Fee simple absolute is presumed, since the deed does not state otherwise.
Either a fee simple absolute or a life estate.
Explanation:
The journal entry to close the books is
Cost of Goods sold A/c Dr $1,200
To Manufacturing Overhead A/c $1,200
(Being the under-applied overhead is recorded)
Since the jobs were undercosted, that means the overhead is applied under overhead so we debited the cost of goods sold account and credited the manufacturing overhead account. Both the items are recorded for $1,200