Answer:
As a disclosure only. No liability is reported
Explanation:
According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.
Answer:
$56,600.00
Explanation:
The amount the company spent on purchase of additional equipment during year 1 can be ascertained using the formula below:
amount spent on additional equipment=ending balance of equipment-(beginning balance-cost of equipment sold)
ending balance of equipment is $304,700
beginning balance is $341,200
cost of equipment sold is $93,100
amount on additional equipment=$304,700-($341,200-$93,100)=$56,600.00
A monopolist can produce at a constant average (and marginal<span>) </span>cost of<span> AC = MC = $5</span>
