Answer:
The company should recognize d. $120,000 loss on disposal
Explanation:
Companies frequently sell plant assets to dispose them. To recognize gain or loss on disposal:
First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.
Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss
.
In Wonder Company:
The carrying amount of the asset = $720,000 - $360,000 = $360,000
Sales price - carrying amount of the asset = $240,000 - $360,000 = -$120,000 <0
The company should recognize $120,000 loss on disposal
Answer:1.0 and X and Y are substitutes.
Explanation:
Elasticity is the degree of responsiveness of the change in price to a change in quantity demanded. Cross elasticity considers 2 products.
Old price $10
New price $8
Old quantity 20 units
New quantity 25 units
Formula: (change in quantity demandedY/change in priceX) * (old priceX/old quantityY)
{ (25-20) / ($10-$8) } * (10/20) = 1.25
Decision Rule:
> 0 the 2 products are substitutes
< 0 the 2 products are complements
= 0 the 2 products are independent
From the calculation, the products are substitutes because its Elasticity is greater than 0.
<span>Year Cash Flow
0 -$46,400
1 18,000
2 33,530
3 4,600</span>
<span>NPV = -$46,400 + $18,000 / (1 + 0.09) + $33,530 / (1 + 0.09)2 + $4,600 / (1 + 0.09)3 =
</span><span>-$1,574.41</span>
Answer:
(D) franchising.
Explanation:
The franchising is an innovative idea to increase the sales of the company brand through which the company can able to capture maximum market size across the work. This strategy works with the motive to expand the business.
In this, there are two parties i.e franchiser and franchisee. The franchiser sells its logo, name, rights to the outlets that we called franchisee. For this, the franchiser gets the lump sum payment and profit share, etc.
