Answer:
.91 pints of irish beer per pint of Australian beer
Explanation:
As we know that
The exchange rate of
1 AUD = 0.5 pound
Now
In Ireland, 1 beer cost = 2.2 pound
And, in Australia, 1 beer cost = 4 AUD
As 1 AUD = 0.5 pound
so 4 AUD is
= 0.5 × 4
= 2
Now the exchange rate is
= 4 AUD beer cost ÷ 1 beer cost in Ireland
= 2 ÷ 2.2
= 0.91
hence, the real exchange rate is 0.91
Answer:
$395,000
Explanation:
Bad Debt expense:
= 1.5% of sales will be uncollectible
= 1.5% × $1,000,000
= 0.015 × $1,000,000
= $15,000
Allowance for Doubtful accounts:
= Bad Debt expense - accounts receivable written off
= $15,000 - $10,000
= $5,000
Net realizable value:
= Accounts receivable - Allowance for Doubtful accounts
= $400,000 - $5,000
= $395,000
Answer:
A deferred tax liability will be reported on the balance sheet
b) trademark
as longterm assets refers to those assets that will not become cash within a one-year period
Explanation:
As the accounting makes the depreciaiton of the asset among 8 years
while the MACRS (depreciaiton for tax purposes) does it in 5 years
the company will pay lower income taxes now but, higher in the future
creating a tax liability as the tax relief occurs now.
Calculations:
Account Depreciation Expense
(cost - salvage value )/ useful life =
(130,000 - 10,000)/ 8 years = 8,000
Tax-purpose depreciation expense
130,000 x 20% = 26,000
There is a tax difference of (26,000 - 8,000) x corporate income tax
Answer:
See below
Explanation:
1. Supply expense. 700
Supplies inventory. 700
2. Insurance expense. 650
Prepaid insurance. 650
3. Depreciation expense. 200
Accumulated Depreciation. 200
4. Wages expense. 100
Wages payable. 100
Answer:
The answer is: C) Invest $1000 in the risky portfolio
Explanation:
If the risk free asset has a rate of return of only 5% and the investor wants to get a RoR of 8%, the only way he can do it is by investing all his funds in the risky portfolio. If he invests any amount on the risk free asset then his total RoR will fall below 8%.
