Answer:
B. $6,000
Explanation:
The computation of the annual depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($41,000 - $5,000) ÷ (6 years)
= ($36,000) ÷ (6 years)
= $6,000
The original cost is computed below:
= Purchase value + transportation and installation cost
= $40,000 + $1,000
= $41,000
Answer:
If a company increases its final goods inventory level, that will increase the country's GDP even if the goods are not sold during the current period (they will be sold in future periods). Increases in inventory level are considered part of Investment component of the GDP.
If the inventories are not sold during the year (2018) and if they continue to be unsold during part of 2019, that will negatively affect the GDP because fewer goods will be purchased to replenish these inventories and the market price of the goods will also decrease. The market price of goods is determined by the supply and demand. If the supply is much higher than the demand and inventories start to pile up, their price will decrease in order to increase the quantity demanded. If the volume of the goods in inventory is significant enough, this should lower the inflation rate.
Answer:
$200 of revenue, $400 of deferred revenue
Explanation:
The journal entry to record the entry on August 1 is shown below:
Unearned revenue A/c Dr $200
To Revenue $200
(Being the two-month revenue is recorded)
The computation is shown below:
= Six-month revenue × number of months ÷ total number of months
= $600 × 2 months ÷ 6 months
= $200
The two months is calculated from June 1 to August 1
The remaining balance would be transferred to the deferred revenue account
= $600 - $200
= $400
Answer:
The decision making skill because it's hard for a judge to make the right decision.
Answer:
Arbitrage
Explanation:
Arbitrage occurs when the same good sells for different prices at different market. This price difference allows market participants to earn riskless profit .
In this case, the generator is more expensive in South Carolina when compared with other places. Thus, in order to earn riskless profit, people would buy where it is cheaper and sell at South Carolina where it is more expensive.
Economic theory suggest that if this kind of buying continues, soon the prices would be the same in both markets .
I hope my answer helps you
