Answer:
The answer is "$5500".
Explanation:
Analysis Differential:
Make Buy
Cost of variable 
Fixed- cost 
Purchasing cost 
Cost of opportunity 
Total relevant cost 
Increasing operating income 
The answer to this question is a practice analysis report. A practice analysis report is a report that is used to analyze the revenues. Also this reports provides a breakdown of the charges, payments, and any adjustments made in a specified period of time. In practice analysis report it can also compare the procedures done and the procedures that are still on hold or not yet done.
Any options to choose from?
a. The amount of land on the balance sheet will be $36,000 which is historical cost of the land. Land is not subject to depreciation so it is recorded at historical cost and not carrying value.
b. The amount of rent expense reported on Income statement will be $5,500 [ $ 6,000 * 11 /12 months ]
c. The total amount of liabilities reported on the balance sheet will be $43,800. This includes the contingent liabilities and warranties.
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Answer:
b. A sales discount
Explanation:
Usually, companies gives sales discounts to their customers to encourage them to pay on time for goods purchased by them. The aim is to enable the customers make immediate payment upon purchase of goods instead of buying them on credit.
Most businesses would prefer receiving cash immediately their goods are sold hence create an incentive in the form of sales discounts which is meant to encourage customers make prompt payment.
