Answer: D
Explanation:
Use the Mutlilevel List Icon
Answer:
B) the other firm does not view the announcement as credible
Explanation:
The reason is that the other firm thinks that the announcing firm will make losses as it will not be able to sell the products in an imperfect market where both the firms have identical cost functions and knew all about the cost. So increasing the production when the demand is the same will decrease the price of the product and result in increased losses to the announcing company.
Answer:
Explanation:
Depreciation : Depreciation is a decrease value of the fixed assets due to wear and tear, obsolesce, etc.
In the given question, the accumulated depreciation is $720 and the asset is purchase on Dec 1 with $3,600 value
So on the date of December 31, the adjusted value would be
= $720 × 1 ÷ 12 months
= $60
As on December 1 the asset is purchased , and we have to prepared the financial statement on December 31 . So, from December 1 to December 31, it has 1 month which is not yet recorded.
Hence, the adjusted entry would be :
Deprecation Expense A/c Dr $60
To Accumulated Depreciation A/c $60
(Being adjusted entry recorded)
Answer:
$29,185.98
Explanation:
Compounding and discounting are the methods used to determine the relationship between present and future value.
Compounding is the method used to determine the future worth of an amount today while discounting is the method used to determine the present value of a future amount.
Both are related by
Fv = Pv(1 + r)^n
where Fv = future amount
Pv = present value
r = rate
n = time
Therefore,
35000 = Pv(1 +0.037)^5
Pv = 35000(1 +0.037)^-5
Pv = $29,185.98
You would have to deposit $29,185.98 to be able to make the down payment of $35,000 on a house in 2 years
