Answer:
b. $400,000
Explanation:
According to the historical cost principle, the land or fixed assets should be reported in the financial statement with the purchase price or historical price.
In the given situation, the land receiving value is $400,000 and its fair market value or FMV is $500,000 and exchange value is $300,000
So, here the land should be recorded at $400,000. Hence, we ignored the fair market value and the exchanged value
Answer:
c) $ 24,200
Explanation:
Computation of Total Period costs
Fixed selling and Administrative expenses $ 8,800
Variable Selling and Administrative costs
$ 7 per unit * 2,200 units sold <u>$ 15,400</u>
Total period costs $ 24,200
The fixed manufacturing overhead is part of manufacturing costs so not considered.
The variable selling and administrative costs are based on units sold and not units produced.
Game theory suggests that competing firms in an oligopolistic industry may be reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases.
<h3>What is Game theory?</h3>
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing. Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
Here are the options:
. too quick to raise prices because they will fail to anticipate that rivals may gain market shares.
b. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases
c. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases
d. too quick to cut prices because they fail to anticipate that rivals may also cut their prices.
To learn more about game theory, please check: brainly.com/question/25746243
Answer:
The board members of Company A, Inc. are considering purchasing a warehouse for the storage of inventory for the company. During the consideration of different warehouses from the realtor, the board votes to purchase the warehouse in Ohio as a centrally located warehouse to their Michigan headquarters. During the discussion, not many options were discussed regarding each property, and the board rushed the process. One of the board members stated that the process did not require much time because they relied on the information and reports from the realtor. It is later discovered that a board member, Lisa, owned 10% of the Ohio Warehouse that the company purchased. She has stated that the warehouse was 10% hers as a result of a property settlement years ago, and she did not see her small interest ownership as being something to the level that she was going to greatly benefit from the sale, so it was nothing she felt a concern about. Some of the shareholders feel this decision may not have been in the best interest for the company and are considering legal action against the board.
a. Explain what defense the board members have regarding their decision i
Explanation:
I don't know