Answer:
Explanation:
The cost allocation of each lot is presented below:
(A) (B) (A × B)
Lot Appraised Value Percentage Purchase value Allocated cost
Lot 1 $76,500 15% $355,000 $53,250
Lot 2 $229,500 45% $355,000 $159,750
Lot 3 $204,000 40% $355,000 $142,000
Total $510,000 100% $355,000
Now the journal entry would be
Land - Lot 1 $53,250
Land - Lot 2 $159,750
Land - Lot 3 $142,000
To Cash A/c $355,000
(Being the lots are purchased for cash)
Answer:
96%
Explanation:
Value of the home: $412,000-Down Payment $16,480 = $395,520
Formula for LTV(Loan to Value Ratio): Loan Amount / Appraised Property Value
LTV: $395,520/$412,000 = 0.96 or 96%
Answer:
D. Accounts ReceivableStanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500
Explanation:
The Sale transaction must be ;
Trade Receivable - Stanton Company $20,000 (debit)
Revenue $20,000 (credit)
<em>Recognise the Revenue and Asset - Stanton Company</em>
Shipping Cost $500 (debit)
Bank $500 (credit)
<em>Recognise the shipping cost and de-recognise the cash asset</em>
Answer: AGREE
Explanation:
A Monopoly faces no competition and are the only sellers of the product they sell. If firms in an industry successfully engage in collusion, the resultant effect will definitely be not unlike a Monopoly because they will set prices as a single firm, control output as a single firm and essentially run the market as a single firm.
They will sell at a rate where the Marginal Revenue curve will be below the demand curve. This will mean a higher price than a competitive market which was probably the main incentive for collusion.
A recent example would be the collusion between BMW, Daimler and Volkswagen, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits. Thankfully this was busted by the European Commission in 2019.
