Answer:
$180,000
Explanation:
A sunk cost refers to the cost that is incurred by the businesses but this cost cannot be recovered by the businesses.
Here, given that
Cost of equipment = $600,000
Accumulated depreciation = $420,000
Cost of new machine = $790,000
In this situation, the sunk cost is determined by subtracting the cost that are related to previous year from the cost of the equipment.
Sunk cost = Cost of equipment - Accumulated depreciation
= $600,000 - $420,000
= $180,000
Answer: Please refer to Explanation
Explanation:
The magazine The Economist publishes an article indicating that analysts expect the value of Canadian dollars to rise relative to Ethiopian birr.
-The Ethiopian Birr will DEPRECIATE in relation to the Canadian Dollar because the article will lead to a rise in demand for Canadian dollars and a drop in Demand for the Birr.
The central bank in Ethiopia announces that it is going to raise interest rates on government bonds.
-Ethiopian Birr will APPRECIATE relative to the CAD as the demand for the Birr will increase due to the attractiveness of it's bonds.
Based on a World Bank report, the inflation rate in Ethiopia is going to be 0% next year, while the inflation rate in Canada is going to be 10%.
- The Birr will APPRECIATE relative to the CAD because goods will be more expensive in Canada. This causes the demand for the Birr to rise as it is the preferred currency.
The price of a specific basket of goods in Ethiopia is roughly 1.9 times higher than an identical basket of goods in Canada, even after adjusting for the exchange rate.
- The Birr will DEPRECIATE relative to the CAD as a higher basket price indicates that the price is higher in Ethiopia than in Canada which will reduce the demand for the Birr increase that of the CAD.
Answer:
The correct answer is strategic business unit.
Explanation:
Strategic business unit refers to the set of activities carried out by a company for which a common and different strategy can be established from the rest of the company's activities. This strategy is autonomous from the rest, but it is not entirely independent since all the strategies of the different strategic business units are linked within the company's global plans.
Answer:
$10,942.20
Explanation:
The computation of the bond interest expense for the six month is shown below:
= Carrying value of the bond × effective interest rate × number of months ÷ total number of months in a year
= $218,844 × 10% × 6 months ÷ 12 months
= $10,942.20
By multiplying the carrying value of the bond with the effective interest rate and the number of months we can get the bond interest expense and the same is to be considered
