Answer:
The amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Explanation:
The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.
The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.
If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.
Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.
From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.
Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.
A small start-up is a good fit for Alex.
Startups are frequently internet- or technology-based firms with broad market appeal. On the other hand, you don't need a sizable market to expand into in order to run a small firm. All you need is a market, and you must be able to effectively contact and service every member of that market.
Despite their tiny size, startups can have a big impact on the expansion of the economy. Startups are the epicenters of the invention; they generate jobs, which increases employment and boosts the economy; and they have a noticeable influence on the cities in which they settle.
After a few years of operation, startups are on the road to success. While small firms develop quickly, they can only do so if they start to see success over time. A startup needs time to develop and gain a large customer base that can use its product.
Types of startups are:
- Buyable startups
- Scalable startups
- Offshoot startups
- Social startups
To know more about startups refer to: brainly.com/question/14488761
#SPJ1
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Compounding is the process of leaving your money and any accumulated interest in an investment for more than one period, thereby reinvesting the interest.
<h3>What is compounding?</h3>
This can be explained to be a situation where the interest that is made from a sum of money is added into the principal sum of money and reinvested.
The initial principal amount and the interest made after a period when added together is regarded as compounding.
Read more on compounding here:
brainly.com/question/24924853
Answer: price-discriminating firms charge more price from the group that has less price elasticity of demand than the group that has more elastic demand
Explanation:
Means, the group that does not decrease their demand as the price goes up. Price discriminating firms charge more price from such groups. Let me explain more that what price discriminating firms are.
These are the firms that charge different prices for similar and identical good from different groups.
