Answer:
CPI at the beginning of the year = 192.52
Explanation:
given data
nominal interest rate = 7 percent
real interest rate = 4 percent
CPI = 198.3
to find out
CPI at the beginning of the year
solution
we know that according to fisher equation
1 + r = 
....................1
and for smaller values is equivalent to r
r = n - i .....................2
here r is real interest rate and n is nominal interest rate and i is inflation rate
so from equation 2
4 = 7 - inflation rate
inflation rate = 3 percent
so
Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year
put here value
3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year
CPI at the beginning of the year = 
CPI at the beginning of the year = 192.52
record book .................................................... .
Answer:
There is unrealised profit on the equioment sold by Play inc to Statetion Corp.
the Adjustment include
- Deduct net unrealised profit of $16,000 from Equipment
- Deduct net unrealised profit of $16,000 from Group(consolidated )retained earnings.
Amount to be recognized as unrealized profit in the consolidated income statement is $16,000
Explanation:
Computation of Net unrealized profit
Unrealized profit ( $50,000 - $30,000) 20,000
Depreciation on Unrealized profit( 20,000/5) <u> (4,000</u>)
Net unrealized profit <u> 16,000</u>
Answer:
Pepsi got into the Indian market market space on time after Coco-cola introduced their product and left. Pepsi came and accumulated alot of market shares which is an advantage for them for early timing and entry. Pepsi get an early entry while the market is developing and grew with the development of the market, thereby accumulating a lot of market shares. and that is an advantage of early entry.
Coca-Cola came back to Indian market space after 15 years, at that time, Coca-Cola would not take market share away from Pepsi companies because the beverage market was growing consistency from year to year with the early birds in the market space. This is disadvantage of Coca-Cola.
