Answer:
None of the multiple choices is correct. The correct answer should be: "Business profit will increase by $12,000 per year"
Explanation:
$12,000 per year is the rental rate.
If his Uncle Fred gives him the building, George will not pay the rental fee. Thus, the business profit will increase by $12,000 per year.
If we consider about the economic profit or implicit cost, it will not change.
they generally manage hotels for a fee
Overtype it’s the only one that makes sense out of those choices
Answer:
The entry decreases assets and decreases stockholders' equity. T
Explanation:
The adjusting entry of interest expense would impact the expenses account, automatically the income statement also.
Moreover, it also impacts the stockholder equity but it does not impact the asset account. Rest item which is mentioned in the question except the corrected option would be affected.
Interest expense is an expense that decreases the net income of the business organization and at the same time it shows the interest payable on the liabilities side.