Answer:
Capitalized value $582.000.
Explanation:
Step 1. Given information.
- The common share of Miser had a fair value of $50 per share.
Step 2. Formulas needed to solve the exercise.
- Fair value of shares = Price per share * (Amount by selling scrap - exchanged shares)
- Capitalized value = fair value of shares - value of scrap.
Step 3. Calculation.
Fair value of shares = $50 * (18.000 - 6.000) = $600.000
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<em>Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant. </em>
Step 4. Solution.
<em />
Fair value of shares = $50*12.000 = $600.000
Less: value of scrap = $18.000 .
Capitalized value = $600.000 - $18.000 = $582.000.
Answer:
The correct words for the blank spaces are: lowering; more.
Explanation:
In case firms have an excess of supply, they will rather sell their products at a lower price than keeping them stored for loss. According to the supply and demand theory, <em>if the prices decrease, so will the quantity supplied but the quantity demanded will rise</em>.
Answer:
The correct answer is consumer inertia.
Explanation:
Custom and inertia are what guide consumers' purchases. It is not a demanding buyer, but a person who goes to the supermarket and chooses what is most familiar to them, whether they have seen it on television or at a friend's house. They are usually a product of daily use where there is hardly any difference between the different brands.
Answer:
B
Explanation:
A sole proprietorship is when only one person runs a business
characteristics of a sole proprietorship
- Unlimited liability
- Only one person owns the business
- Limited sources of capital
Doesn't exist perpetually.
A partnership is when at least two people come together to form a business
Features of a partnership :
1. Unlimited liability
2. Limited sources of capital as they cannot raises funds in the capital market.
Answer:
The correct answer is option B.
Explanation:
A recessionary gap implies that the available resources in the economy are not being fully utilized. this means that resources are being wasted and economy is not producing at the efficient level of output.
An expansionary gap, on the other hand, involves the risk of an increase in the inflation rate. Both situations are not good for an economy.
A recessionary gap is corrected by adopting an expansionary monetary or fiscal policy. Similarly, an expansionary gap can be corrected by adopting a contractionary fiscal or monetary policy.