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garri49 [273]
3 years ago
15

Pro Corp., a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB), which has a current exch

ange rate of $o.o22. Inflation in the United States is expected to be scenario, Pro Corp. would forecast the value of the baht at the end of the year to be:
a. $0.023.
b. $0.021
c. $0.020.
d. None of the above
Business
1 answer:
aleksklad [387]3 years ago
4 0

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Exchange rate of 1 Baht= $0.022

Expected inflation in united states (Assume) = 3% = 0.03

Expected inflation in Thailand (Assume) = 10% = 0.10

Computation:

After 1 year  rate of 1 Baht in Dollar

The price in US = 1 × (1+0.03) = $1.03

The price in Thailand = 1 × (1+0.10) = 1.10 baht

1 baht = 1.03×0.022÷1.1 = $0.0206

Therefore, 1 baht = $0.21 (approx)

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(True) or (False)? The total amount of depreciation accumulated for an asset over its entire life will differ depending on the m
vladimir1956 [14]

Answer:

True

Explanation:

Let us illustrate this using the below hypothetical case:

Asset acquired-motor vehicle

useful life is 3 years

salvage value $20,000

cost of the asset=$100,000

depreciation methods:

straight-line method

double-declining balance method

depreciation under straight-line method=(cost-salvage value)/useful life

depreciation under straight-line method=($100,000-$20,000)/3=$26,666.67  

accumulated depreciation for 3 years=$26,666.67  *3=$80,000

double declining balance method:

double-declining rate=100%/useful life *2=100%/3*2=67%

2 means double

year 1 depreciation=$100,000*67%=$67,000

year 2 depreciation=($100,000-$67000)*67%=$22,110  

year 3 depreciation=($100,000-$67000-$22110)*67%=$7,296  

accumulated depreciation for 3 years=$67,000+$22,110+$7,296=$96,406  

$80,000 not equal to $96,406  

5 0
3 years ago
Debt is frequently incurred when plant assets are acquired. For example, debt may be incurred on the purchase of plant assets. D
S_A_V [24]

Answer: Expense capitalize

Explanation:

 The expense capitalize is the term which is used to refers to the capitalizing the given cost of the expenses based on their values for the purpose of evaluating all the expenses in the balance sheet.

The capitalize the expenses provide various types of benefits to the firms for obtaining the various types of updated assets that typically helps in providing the long term duration.

According to the given question, the interest in the given two cases is basically treat by expense capitalize for the purpose of financial reporting.

Therefore, Expense capitalize  is the correct answer.  

 

8 0
3 years ago
When stock prices decline steadily, investors refer to the market as a ________ market.?
labwork [276]
<span>Most would refer to it as a "Bear" market, as opposed to a "Bull" market when stocks are steadily increasing. </span>
8 0
3 years ago
Read 2 more answers
Dufner Co. issued 17-year bonds one year ago at a coupon rate of 6.3 percent. The bonds make semiannual payments. if the YMT on
MA_775_DIABLO [31]

Answer:

-_-

Explanation:

-

4 0
3 years ago
A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both market
noname [10]

Answer:

A) QE = 400, PE = 250

     QW = 325, PW = 375

b) east market has more elastic market demand

Explanation:

Given data :

Marginal cost = $50 ( both markets )

demand and marginal revenue in each market are given differently

a) Determine/find the profit-maximizing price and quantity in each market

For east market :

50 = 450 - QE

hence QE = 450 -50 = 400

since QE = 400 ( quantity for east market )

400 = 900 - 2PE

PE = 250 ( PROFIT maximizing price for east market )

For west market

50 = 700 - 2QW

Hence QW = 325

since QW = 325

325 = 700 - pw

PW = 375

B) The market in which demand is more elastic is the east market because the quantity demanded is higher and also the profit maximizing price is lower as well

5 0
3 years ago
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