Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue
<h3>What is Interest?</h3>
This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.
Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.
Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.
Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.
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Answer:
$40
Explanation:
Profit made is the difference between revenue earned and cost incurred by an entity.
Marginal profit is thus a difference between the additional sales during the added time and the additional cost incurred.
As such, for the local restaurant;
Profit earned during the last hour given that for each additional hour is $404 and the additional revenue (the marginal revenue) during the last hour is $444
= $444 - $404
= $40
Answer:
see below
Explanation:
Land as a factor of production will comprise the natural resources found beneath, on, and above the earth's surface. Land will therefore include the fertile land/soils used for agricultural productions, minerals, oil and gas, forests, water, and the space used to put up factories and businesses.
Land consists mostly of natural resources occurring on earth. The other factors of production consist of capital, labor, and entrepreneurship.
Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated.
Explanation:
Small businesses account for more than 99% of America's 28.7 million corporations. The vast majority (88%) of employers are under 20, and nearly 40% of all businesses have less than 100 000 dollars of income. 20% of SMEs are contractor firms and 80% are non-employer businesses.
In reaction to concerns from their economic confidence to obstacles to their ownership, more than 2000 existing and potential companies across the country have responded.
The business environment is always evolving in the United States. The changing business environment is driven by new technologies, developments, and policies.
Answer
The answer and procedures of the exercise are attached in image.
Explanation
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