Answer:
2015 - $24,000
2016 - $0
Explanation:
The computation of profit for each year is shown below:
For 2015:
The profit = Service revenue - expenses incurred
= $72,000 - $48,000
= $24,000
For 2016:
There is no transaction to record under the accrual basis of accounting. So, the profit is zero
As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts
Answer:
d. $2,591.85
Explanation:
To solve we can use the present value formula defined by
where PV is present value, FV is future value, t is time and r is the interest rate , we can replace the values given in the question. Where 4000 is the future value, the time is t=6 years, and the interest rate is r=0.075, so we get
Answer:
$1,200,000
Explanation:
The computation of the accrued interest is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $48,000,000 × 10% × (3 months ÷ 12 months)
= $1,200,000
We simply applied the simple interest formula by considering the principal amount, rate of interest and the number of months so that the correct amount could come
Answer: High degree of similarity to competitors products.
Explanation:
In a perfectly competitive markets, the producers are price takers as the producers cannot influence the prices of goods in a market.
In such cases, producers are forced to sell the goods at current market prices. Good sold in the market are similar and prices are usually the same. If a producer influences his or her price by setting a price above the equilibrium price in the market, the customers will move and purchase the product from other producers.
Answer:
Cost of Truck = $26360
Explanation:
given data
cash price = $22,280
accident insurance = $1,940
sales taxes = $1,730
motor vehicle license = $250
painting and lettering = $2,350
solution
we know that Accidental insurance and the vehicle license are not include in cost of truck because there are yearly cost so that cost of the truck will be as
cost of the truck = cash price + sales taxes + painting and lettering ..............1
put here value we get
Cost of Truck = $22,280 + $1,730 + $2,350
Cost of Truck = $26360
