Answer:
The corrected Net income = $54,500
Explanation:
Net income is defined as the total profits earned by an individual from a business venture. It is equal to the difference between the gross income and the expenses involved including cost of supplies and accrued salaries.
Given: net income = $58,000
Entries not made include supplies expense = $2,200 and accrued salaries = $1,300
Therefore, the corrected net income = net income - expenses = $58,000 - ($2,200 + $1,300) = $54,500
Answer:
C) $50,400
Explanation:
If Sally received $50,000 of compensation from her employer and she received $400 interest from a corporate bond, then the amount of Sally's gross income from these items is $50,400
Sally's income taxable is not only her employment compensation but also the interest she earns from a corporate bond is subject to income tax.
Answer:
On self-constructed assets from the date an entity formally adopts a plan to build a discrete project.
Explanation:
Capitalized interest is an accounting practice required under the accrual basis of accounting. Capitalized interest is an interest that is added to the total cost of a long-term asset or loan balance. This makes it so the interest is not recognized in the current period as an interest expense.
Capitalization is the addition of unpaid interest to the principal balance of your loan. The principal balance of a loan increases when payments are postponed during periods of deferment or forbearance and unpaid interest is capitalized.
Answer:
Option C. Increasing volume substantially reduces production costs.
Explanation:
Skimming pricing is the strategy to charge the customer relatively high price because the product is innovative.
Option A is incorrect argument against skimming strategy because the argument would be in favor if there large potential customers in the market whom the company can charge higher prices.
Option B is also incorrect argument against skimming strategy because the high initial price of the product will not attract competitors because the product is in its growth phase.
Option C is correct argument against skimming strategy because selling at a lower price will enable the company to sell higher number of products which will enable the company to gain economies of scale which would reduce the production costs substantially.
Option D is incorrect argument because customers interpret the high price as signifying high quality which is again in the favor of the company's skimming strategy.
Answer:
Unanticipated effect.
Explanation:
The concept of unanticipated effect can be defined as those consequences that are unitended or unanticipated in affect of certain actions taken by people-or government. The term was coined by Robert K. Merton.
When the government make certain decisions, they may produce certain consequences or effects that were not intended or intentional.
<u>In the given case, the dependence of America on gasoline and diesel-powered vehicles have both negative and positive effects. These effects are not intended but are produced as a consequence of the actions of the government.</u>
Thus the correct answer is unanticipated effect.