Answer:
b. there are no gains from specialization and trade between the two countries.
Explanation:
If the two countries are producing goods with the same opportunity cost, then there is no need or advantage gained from the trade of goods between these two countries.
Usually, countries trade with each other if one has a comparative advantage of producing one good over the other trading country. Then in this case is can specialize in making that good and trade the excess to the other country.
However, in the case when two countries are producing apples and oranges. And opportunity cost producing orange for country 1 is one apple and same for country 2
Opportunity cost for Country 1 : 1 Apple = 1 Orange
Opportunity cost for Country 2 : 1 Apple = 1 Orange
Then countries will gain no additional benefit from specializing in one good.
Answer:
$198,000 and $0
Explanation:
The calculation is shown below:
The Cost of the land is
= Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $178,000 + $15,300 + $1,100 + $2,300 + $1,300
= $198,000
As the property is buy for the building site so here no cost will be recognized and allocated to the new building cost
hence, it would be zero
Answer:
$1,420
Explanation:
The computation of the bad debt expense is shown below:
As we know that
Ending balance of allowance for uncollectible accounts = Beginning balance of allowance for uncollectible accounts + bad debt expense - written off amount
$1,280 = $1,325 + bad debt expense - $1,465
So, the bad debt expense for the year 2022 is $1,420
Basically we applied the above formula to find out the bad debt expense
The Answer is D cost and benefit ranked in progressive units.
