Answer:
c. personal objectives
Explanation:
Business purchase decision based on personal objectives -
It refers to the practice of establishing the business or any project which is beneficial as being fruitful in personal relation , is referred to as personal objectives .
The method tends to divert to being able to fulfil his or her personal motto .
Hence , from the given scenario of the question ,
The correct answer is c. personal objectives .
Answer:
(a) The following points explain the application of the cost principle to plant assets.
1.Under the cost principle, the acquisition cost for a plant asset includes all expenditures necessary to acquire the asset and make it ready for its intended use.
2.Cost is measured by the cash paid in a cash transaction or by the cash equivalent price paid when non cash assets are used in payment.
3.The cash equivalent price is equal to the fair market value of the asset given up or the fair market value of the asset received, whichever is more clearly determinable.
(b) Following is the list of transactions and items to be debited.
1. Land
2. Factory Machine
3. Delivery Truck
4. Land Improvements
5. Delivery Truck
6. Factory Machine
7. Prepaid Insurance
8. License Expense
Explanation:
Answer:
d. $175,380.
Explanation:
Net present value for Project Nuts = (Net annual cash inflow*PV of annuity at 10%, 6 period) - Initial investment
Net present value for Project Nuts = ($156000*4.355) - $504,000
Net present value for Project Nuts = $679,380 - $504,000
Net present value for Project Nuts = $175,380
Answer:
Ken must disclose this information as it is a material fact.
Explanation:
A material fact is a fact that a reasonable person would recognize as germane to a decision to be made, as distinguished from an insignificant, trivial, or unimportant detail. In other words, it is a fact, the suppression of which would reasonably result in a different decision; meaning it would be the most significant information when someone is making a decision, in this instance, whether or not Patrick would buy Jordan’s house. Falsification of a material fact that would cause a party to a contract to refrain from entering into the contract may be grounds for rescission, meaning that Ken has an obligation to disclose this information.
