<h3>Amount of cost to the building is $69,645
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Explanation:
The total property value of Tonto Company = $140,000.
The total property (building, equipment and land) value of Tonto Company = $140,000.
The building was appraised at $98,000,
The land was appraised at $63,000
The equipment was appraised at $36,000.
- The total current value of the 3 assets = $98,000 + $63,000 + $36,000
- The total current value of the 3 assets = $197,000.
- Amount of cost to the building = ($98,000 x $140,000) / $197,000.
- Amount of cost to the building = $69,644.67
Amount of cost to the building = $69,645
Answer:
1. a. 4.081%
2. c. $23,536.36
Explanation:
1. Periodic rate=(4.4%/4) = 1.1%
EAR=(1+APR/m)^m-1
where m=compounding periods
= (1+0.044/4)^4-1
= 1.011^4 - 1
= 1.04473133864 - 1
= 0.04473133864
= 4.47%
EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.04/365)^365-1
= (1+0.00010958904)^365 - 1
= 1.00010958904^365 - 1
= 1.04080849272 - 1
= 0.04080849272
= 4.081%
2. A=P(1+r/365)^365*n
where A=future value, P=present value, r=rate of interest, n=time period.
= 22000*(1+9%/365)^(9/12*365)
= $23,536.36
Answer:
True
Explanation:
Jeffrey Pfeffer a Professor of Organizational Behavior and Robert I. Sutton a Professor of Management Science and Engineering both Stanford’s Graduate School of Business gave an approach to decision making in an organization as an action that is driven by hard facts rather than half truths.
Answer:
BEP $274,509.8
Explanation:
Product X sales weight 70%
Product Y sales weight 30%
X CMR 0.60 x 70% sales weight = 0.42
Y CMR 0.30 x 30% sales weight product Y = 0.09
Contribution mix 0.51
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140,000 fixed cost / 0.51 = 274,509.8
Answer: Positive Externality
Explanation:
Externality is a side effect of an activity that is operated by a particular industry or people which affects the other parties who are not involved in the activity and this cost is not included in the cost of goods and services.
There are two types of externalities ; Positive and Negative externality.
Negative externality refers to the externality that affects the other parties in a negative way. For example, smoking.
Positive externality refers to the externality that affects the other parties in a positive way. For example, Education.
Therefore, if some part of the benefit of an activity is received by the third party who is not involved in this activity, it is called Positive Externality.
