Answer:
D) Sue can sue Jerry and bring the case to Iowa federal court as this is a case that involves diversity of citizenship.
Explanation:
Diversity of citizenship means that the parties involved in a lawsuit are citizens of different states (within the US) or are citizens of different countries. If a company is involved in a lawsuit, its citizenship is defined as where the company was incorporated or where does it carry its normal business operations.
In this case since Sue is a citizen of the state of New York and Jerry is a citizen of the state of Iowa (diversity of citizenship applies), Sue can choose to sue Jerry in a federal court since the citizens of two different states are involved.
Answer:
Accounting Profit = $11,875
Economic Profit = $1,575
Explanation:
income from job = $10,000 /month
Rent which could have been earned = $300 /month
Office supplies = $75 /month
Increase in electricity bills = $50 /month
Income from home = $12,000 /month
(a) Accounting profit = Income - Costs
= $12,000 - ($75 + $50)
= $11,875
(b) Economic profit = Accounting profit - Opportunity cost
= $11,875 - ($10,000 + $300)
= $1,575
Answer: A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
Answer:
$72,600
Explanation:
Ending balance of the account receivable can be calculated by adding credit sales in beginning balance and deducting any account receivable written-off.
As we have the ending balance of account receivable, we need to calculate credit sales by following formula:
Account receivable Ending Balance = Account receivable Beginning Balance + Credit Sales - Bad Debt - Ending Balance
$320,000 = $260,000 + Credit Sales - $12,600
$320,000 = $247,400 + Credit Sales
Credit Sales = $320,000 - $247,400 = $72,600
