Answer:
1) country A has a comparative advantage in production of capital goods.
2) for country A 24 units of food can be traded for 10 units of capital goods,
for country B 30 units of food can be traded for 10 units of capital goods.
Explanation:
country A has a comparative advantage in production of capital goods because they have been able to produce more capital goods with the same amount of input (worker) than country B.
For country A, 120 units of food = 50 units of capital goods, therefore
10 units of capital good will be traded for (120 x 10)/50 = 24 units of food.
for country B 90 units of food is equivalent to 30 units of capital goods, therefore,
(90 x 10)/30 = 30 units of food
Answer:
Plum Corporation
The best choice is:
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Explanation:
a) Tax is the greatest difference existing between a C corporation and an S corporation. With a C corporation, the earnings are taxed twice. When the C corporation earns income, it is taxed as a corporation. When it distributes the after-tax earnings, the owners are taxed again in income tax. This does not happen with an S corporation. The S corporation does not pay corporate tax, instead, its owners pay their individual income taxes because the corporation's incomes are passed through the members.
Answer:
The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.
Explanation:
Account receivable:
= Ending balance - Beginning balance
= 24,000 - 28,000
= -4,000
Decrease in account receivable
Inventory:
= Ending balance - Beginning balance
= 65,000 - 68,000
= -3,000
Decrease in inventory
Since the Current assets have decreased therefore they should be added to net income.
The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.
Note: The options are missing from the question, so i have attached the options with the answer.
Answer:
The amount that would not be covered by Thad Joslin insurance is $50,000
Explanation:
Thad has a 100/300 bodily injury liability coverage, this implies that he has a coverage of $100,000 bodily injury liability insurance per person and $300,000 total bodily injury liability insurance per accident. However, his insurance policy does not make provision for or cover the $50,000 property damage liability per accident. Therefore, Thad Joslin would have to pay for it.
Answer:
Residual or salvage value isn't needed in the calculation of deprecation expense using the double declining method.
Explanation:
Deprecation expense using the double declining method = [2 ×(1/useful life)] × cost of the asset
I hope my answer helps you
