Answer:
b. $42,600
Explanation:
First, we calculate the total cost of college:
Now, we calculate the net income she would receive, if she didn't go to the college:
Finally, the opportunity cost of going to college is the result of adding the total cost of college plus the net income that she would receive if she works instead of going to college.
The amount should Fafnir report as intangible asset - franchise is -
Purchase value of Franchise = $ 50,000
Life of Franchise = 10 years
Salvage value = $ 0 ( not given)
Since, no other methods of amortization are specifically mentioned, straight line method will be used.
Book value of Franchise = Purchase price - Amortization expenses
Book value of Franchise = $ 50,000 - [ ( $ 50,000 - $ 0) / 10 Years ]
Straight-line depreciation = ( Purchase price - Salvage value) / Number of years
Book value of Franchise = $ 50,000 - $ 5,000 = $ 45,000
The amount should Fafnir report as intangible asset - franchise is = $ 45,000
Answer:
Opportunity costs.
Explanation:
Investing in stocks depicts Barney's opportunity cost of money.
The opportunity cost is the money or funds held up by an individual instead of investing it in other businesses or ventures to yield interests.
Due to the greatest cost of goods sold, the LIFO (Last In Last Out) technique displays the lowest net profitability. Compared to the other techniques of inventory valuation, the cost of goods sold for the LIFO approach is the greatest.
<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>
The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.
<h3>Which method of inventory has the lowest income tax rate?</h3>
LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.
<h3>In an era of inflation, which inventory method results in the lowest income tax?</h3>
Due to increasing COGS, LIFO leads to reduced net income (and taxes). However, under LIFO during inflation, there are fewer inventory write-downs. Results from average cost are in the middle of FIFO and LIFO.
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A shop that sells one type of thing
