Answer:
c. $24
Explanation:
At the optimal combination, the ratio between the marginal product for the last units of capital and labor must equal the ratio between the price of capital and the price of labor.
If Labor costs $8 and has a marginal product of 15, since capital has a marginal product of 45, the price of capital is:
Price of capital is $24.
Answer:
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale $15,000
Explanation:
Cost :
Verizano corporation bonds payable - 61,400
Preble corporation notes payable - 53,100
Lucerne company common stock - 88500
Fair value :
Verizano corporation bonds payable - 56,200
Preble corporation notes payable - 44,600
Lucerne company common stock - 85, 200
Total:
Cost = $(61,400 + 53100 + 88500) = $203,000
Fair value = $(56,200 + 44600 + 85200) = $188,000
Unrealized amount = cost - fair value
$203,000 - $188000 = ($15000) loss
debit unrealized loss-equity $15,000
credit fair value adjustment- Available-for-sale (ST) $15,000
