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Feliz [49]
3 years ago
8

There are many food carts near Mark’s university. Mark and his friends regularly buy hot dogs from Jeff’s cart. Recently, Andrea

opened a business selling two-for-one hamburgers near Jeff’s cart. What will be effect on Jeff’s hot dog cart?
A. demand for his hot dogs will increase
B. supply of for his hot dogs will decrease
C. supply of his hot dogs will increase
D. demand for his hotdogs will decrease
Business
1 answer:
garik1379 [7]3 years ago
4 0
Since there now is a second store, the customers will need to be shared. This means that there are less customers in Jeff's business. Therefore the answer is D: demand for his hotdogs will decrease.
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hello your question has a missing journal entry table attached below is the entry journal table completely filled

Explanation:

Amount of bonds acquired = 40% of original bond

i) Bonds payable = 40% * 1,300,000

                           = $520000

purchase price of bonds = $520000 * 96% ( FACE VALUE )

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hence the annual amortization

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(520000 - 499200 ) / 8  = $20800/8 = $2600

ii) premium on bonds payable

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intra entity expense and income table is attached below

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the book value on bonds as at 1st January 2011

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Premium on bonds as at January 1st 2011

= $1365000 - $1300000 = $65000

amortization of premium as at January 1st 2011

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hence the controlling interest in bonds payable = $540800

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attached below is the journal entry on 31st December 2013

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