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3 years ago

Which of the following BEST defines absolute advantage in terms of international trade?

Business

1 answer:

nevsk [136]3 years ago

3 0

I believe the answer would be D it would not be A like the other response says because that would put them in a deficit

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Wildhorse Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $40,100

olga55 [171]

Answer:

31-Dec-19

Dr. Lease receivables $ 180,498

Cr. Sales revenue $180,498

Dr. Cost of goods sold $ 170,000

Cr. Inventory $ 170,000

Explanation:

The lease is recorded on the present value of all the payment to be made in the future.

We will use the present value of annuity formula

Present value of Lease = P [ ( 1 - ( 1 + r )^-n ) / r ]

where

P = annual payment = $40,100

r = implicit rate = 11%

n = numbers of payments = 6 payments

Placing values in the formula

PV of Lease = $40,100 x [ ( 1 - ( 1 + 11% )^-6 ) / 11% ] = $169,645

Now calculate the present value of guarantee residual value

PV of guarantee residual value = $20,300 x ( 1 + 11%)^-6 = $10,853

Fair value of lease = Present value of Lease payment + Present value of guarantee residual value

Fair value of lease = $169,645 + $10,853 = $180,498

Cost of equipment will be recorded in the cost of goods sold and Inventory as well.

We will pass two separate journal entries first to record the lease receivable and second to record the cost of the equipment.

3 0

3 years ago

Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance

stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
50% chance of occurring x 10% potential return = 0.5 x 10% = 5%

30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
total expected return = 9.2%

6 0

3 years ago

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. third-degr

stellarik [79]

<span>When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as price discrimination.

Price discrimination is a way of changing the prices for something based on time of day, amounts sold, or who they are sold to. This type of discrimination is done to try and maximize profits in the largest way possible. </span>

6 0

3 years ago

Read 2 more answers

1.) Ocean City Kite Company manufactures & sells kites for $6.50 each. The variable cost per kite is $3.50 with the current

Brut [27]

Answer:

$270,000

Explanation:

Contribution per kite = $6.50 - $3.50 = $3.00

Break even point = 90,000 kites

Since;

Break even point = Fixed cost / Contribution per kite.

We have:

90,000 = Fixed cost / $3.00

Fixed cost = 90,000 * $3.00 = $270,000

Therefore, Ocean City Kite Company's fixed costs is $270,000.

5 0

3 years ago

Janice plans on pursuing a teaching degree in college. Her only option for funding her college education is to apply for loans.

vazorg [7]

A because a lot of times depending on your degree they will automatically give you loan forgiveness, espicially going into a high attending job such as teaching.

7 0

3 years ago