Auditors consider fi nancial statement assertions to identify appropriate audit procedures. For

Butler Corporation is considering the purchase of new equipment costing $78,000. The projected annual after-tax net income from

True [87]

Answer:

-$7,621

Explanation:

Calculation to determine the net present value of the machine

Using this formula

Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested

Let plug in the formula

Net present value of the machine=($2,800+$26000*2.4437)-$78,000

Net present value of the machine=($28,800*2.4437)-78,000

Net present value of the machine=$70,379-$78,000

Net present value of the machine=-$7,621

Therefore the Net present value of the machine is -$7,621

5 0

3 years ago

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, th

Helen [10]

Answer:

a decrease in both American imports and exports.

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

Some examples of trade barriers are import license, quotas, subsidies, embargo, currency devaluation, local content requirements, tariffs, etc.

A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.

A tariff increase usually reduce the nation's dependence on imports.

Hence, if tariffs are increased, the long-run effect is most likely to be a decrease in both American imports and exports.

5 0

3 years ago

As a server you earn $60000 per year, including tips. Someone offers you a new job as an economic consultant, which pays $100,00

Crank

The correct option is B

Explanation:

The accounting profit can be calculated with the help of following given formula

Accounting profit = revenue minus the explicit costs =100000 minus 25000

Thus, after calculations, the accounting profit is equal to $75000

To calculate the economic profit, the following formula is to be used.

The economic profit = accounting profit minus the implicit costs

=75000 minus 30000

($30000 is his salary as the server which is opportunity cost) =$45000

Thus, the Option B is the correct answer.

4 0

3 years ago

. Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its lead

OLEGan [10]

Answer:

B. increase the supply of its doll now before the other doll hits the market

Explanation:

Funsters Inc. should increase supply of it´s popular doll now before the doll of Toysorama company hit the market at low price. This will give first mover advantage to Funsters Inc., Which will help the company to grab market share and gain revenue from the market before other company launches its doll. Competition in the market can be handled by taking first step.

3 0

4 years ago

The situations presented here are independent of each other.

rjkz [21]

Answer:

a) Pelfer Corporation redeemed $140,000 face value, 9% bonds on April 30, 2014, at 101. The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2014, has been made and recorded.

Dr Bonds payable 140,000

Dr Loss on retirement of bonds 14,900

Cr Discount on bonds payable 13,500

Cr Cash 141,400

Since the carrying value of the bonds was less than the redemption value, the company will incur in a loss.

b) Youngman, Inc., redeemed $170,000 face value, 12.5% bonds on June 30, 2014, at 98. The carrying value of the bonds at the redemption date was $184,000. The bonds pay annual interest, and the interest payment due on June 30, 2014, has been made and recorded.

Dr Bonds payable 170,000

Dr Premium on bonds payable 14,000

Cr Cash 156,400

Cr Gain on retirement of bonds 27,600

Since the carrying value of the bonds was more than the redemption value, the company will incur in a gain.

4 0

3 years ago