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Rom4ik [11]
3 years ago
6

Habib withdrew $100,000 from his bank account paying 5% interest to purchase equipment for his construction company. If Habib ea

rns an accounting profit of $10,000 and he has no other opportunity costs, his economic profit will be equal to
Business
1 answer:
daser333 [38]3 years ago
6 0

Answer:

$5,000

Explanation:

Given that,

Accounting profit = $10,000

Interest rate = 5%

Amount withdraw = $100,000

The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.

Accounting profit is determined by subtracting explicit costs from the total revenue.

Accounting profit = Total revenue - Explicit costs

Economic profit:

= (Total revenue - Explicit costs) - Implicit costs

= $10,000 - (Interest income)

= $10,000 - (5% × $100,000)

= $10,000 - $5,000

= $5,000

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In the current year, Joel has a passive activity loss of $15,000 from a limited partnership interest in XYZ, LP. He also has sus
anygoal [31]

Answer:

the  net impact on these items is $5,000 gain

Explanation:

The computation of the net impact on these items is as follows;

Net effect is

= Gain - Loss - suspended loss

= $50,000 - $15,000  - $40,000

= $5,000 gain

hence, the  net impact on these items is $5,000 gain

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
3 years ago
Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, in Cartar,
Volgvan

Answer:

c higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.

Explanation:

As we know that,

Money supply = Saving amount + consumption amount

And, the saving rate would be

= (Saving amount ÷ money supply) × 100

So

For Aire, the saving rate would be

= ($4,000 ÷ $16,000) × 100

= 25%

For Bovina, the saving rate would be

= ($3,000 ÷ $27,000) × 100

= 11.11%

For Cartar, the saving rate would be

= ($10,000 ÷ $60,000) × 100

= 16.66%

5 0
3 years ago
ells Company's delivery truck, with a cost of $56,000 was destroyed by fire. At the time of the fire, the balance of the Accumul
yan [13]

Answer:

The company will earn a gain of $14,000.

Explanation:

The original cost of the ells company's delivery truck was $ 56,000 and the accumulated depreciation account had a balance of $38,000, which means a provision for the $38,000 was made in case something bad happens to the truck, and it eventually did as the truck was destroyed by fire and hence the amount of $18,000 ($56,000 - $38,000) was left which was not covered by the company.

The company received $32,000 as insurance , which means the $18,000 loss would be covered here - $32,000 -$18,000 = $14,000, and also the company will gain $14,000.

4 0
3 years ago
Due to the rising cost of a college education, a greater percentage of students have part-time jobs in comparison to past years.
lana66690 [7]

Answer:

This decrease in the number of full-time students can be expected to "INCREASE" the labor force participation rate and "DECREASE" the unemployment rate.

Explanation:

The labor force participation rate is the ratio of the number of people employed and those actively seeking employment, to the total labor force.

Unemployment rate is the ratio of the number of those currently unemployed to the total labor force.

If the number of students with part-time jobs increase, then it will lead to an increase in the number of people employed and a corresponding increase in the labor force participation rate.

This will also reduce the number of people unemployed and the unemployment rate.

7 0
3 years ago
How does the analysis from the supplier position and supplier preferencing models affect how a purchasing manager plans to do bu
Dmitry_Shevchenko [17]

Explanation:

The analysis of the supplier's position and the supplier's preference models affect how a purchasing manager plans to do business with suppliers in the sense that, through these models, purchasing managers obtain more information to analyze their preferences, that is, it is a tool that allows purchasing managers to choose the ideal supplier according to their essential criteria, it is possible to choose a supplier based on market reputation, quality, price, etc., making the supplier decision making process more aligned to the purposes and organizational goals and more effective.

5 0
3 years ago
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