Define primary industry .

Joe's Taco Hut can purchase a delivery truck for $20,000 and he estimates it will generate a net income (after taxes, maintenanc

Hitman42 [59]

Answer:

The correct answer is option (d).

Explanation:

According to the scenario, the given data are as follows:

Truck cost = $20,000

Net income from truck = $4,000

If work somewhere else, Net income = $3,000

If he work some where else he save $20,000.

If the interest rate is 5%, then,

Interest amount = 5% × $20,000 = $1,000

So, it means, if the interest rate is 5%, and he work some where else than his net income = $3,000 + $1,000 = $4,000.

So, If the real interest is less than 5% only than purchasing a truck is the right option.

Hence, purchase the truck if the real interest rate is less than 5% is correct.

6 0

3 years ago

What is generally the difference between blue-collar workers and white-collar workers?

gayaneshka [121]

White-collar work is performed in an office, cubicle, or other administrative setting. blue-collar workers, whose job requires manual labors

7 0

3 years ago

The total amount of debt owed by the Federal government is represented by the total value of the outstanding:

Angelina_Jolie [31]

Answer:

U.S. government securities

Explanation:

Governments use different methods to regulate money flow within the economy and also to borrow money for running it's activities.

One of such methods is the sale of government securities.

They are issued to buyers to obtain funds for government use. The government now makes a commitment to pay the owed amount at a future date.

They include: treasury bills, treasury notes, treasury bonds, and treasury certificates.

Government securities represents the total amount of debt owed by the Federal government

6 0

3 years ago

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on Decembe

qaws [65]

Answer:

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

8 0

3 years ago

Flint Corporation issued 700 shares of no-par common stock for $7,800. Prepare Flint’s journal entry if (a) the stock has no sta

Masja [62]

Answer:Flint corporation journal $

Date

1. Bank account Dr 7800

Common stock Or. 7800

Narration. Issuance of 700 ordinary stock for $7800 .

2. Bank account Dr 7800

Common stock Cr. 1400

Share premium. 6400

Narration. Issuance of 700 ordinary at $7800 at a premium.

Explanation:

Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.

4 0

3 years ago

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Define primary industry .​

Define primary industry .