The answer is E. i might be wrong
Answer:
$44,800
Explanation:
For computation of capital balance we need to find out first total capital, shares, gain and Orton shares which is shown below:-
Total capital = $60,000 + $40,000 + $20,000
= $120,000
Shares = Total capital × Interest rate
= $120,000 × 0.10
= 12,000
Gain = Investment - Shares
= $20,000 - $12,000
= $8,000
Orton Shares = Gain × 3 ÷ 5
= $8,000 × 3 ÷ 5
= $4,800
Capital = Given capital balance + Orton Shares
= $40,000 + $4.800
= $44,800
So, We have applied the above formula.
Answer:
Equals the foreign exchange rate minus the inflation rate.
Explanation:
Nominal rate of interest refers to the interest rate which does not account for rate of inflation.
It is expressed as
Nominal interest rate = Real interest rate + rate of inflation
Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.
Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.
Answer: Variable cost of production
Explanation:
Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.
Variable cost is the cost that covers through the production phase and changes as production is being finalized. This cost changes price variables depending on how much the company produces. The rise and fall of production determines their final position in pricing. Packaging and the various material cost are examples of variable cost.
Answer:
$2,250,000
Explanation:
The computation of retained earnings is shown below:-
Retained earnings 31/1/17 = Retained earning 1/1/17 + Net income of current year - Understatement of depreciation expenses - Dividends declared
= $2,000,000 + 1,000,000 - $430,000 - $320,000
= $2,250,000
Therefore for computing the retained earnings 31/1/17 we simply applied the above formula.
As we assume that the question is asked for the 31/1/17 instead of 1/1/17 as it is already mentioned in the question
