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3 years ago

What constitutes an implicit cost to the johnston manufacturing company?

Business

1 answer:

irakobra [83]3 years ago

4 0

Answer:

Interest on self funded capital , Self imputed salary of entrepreneur

Explanation:

Implicit Cost is the cost of business, which includes the imputed value of self owned factor services. No cash monetary exchange takes place for such costs, unlikely Explicit Costs (for which money factor payment is done). The implicit costs include the opportunity cost of all the factor services. It implies the cost of next best alternative of the factor services.

Examples

Interest on self funded capital , as it could have opportunity cost in terms of interest otherwise
Self entrepreneurial, managerial salary ; that reflects the opportunity cost in terms of salary that could be earned otherwise (skills employed somewhere else)

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How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?

Alex73 [517]

Answer:

i will take at lease 3 years to get 425,845

4 0

4 years ago

Hodge Co. exchanged Building 24 which has an appraised value of $4,971,000, a cost of $7,691,000, and accumulated depreciation o

VLD [36.1K]

Answer:

Hodge Co. Books

Debit : Building M $4,163,000

Debit : Accumulated Depreciation Building 24 $3,528,000

Credit : Cost of Building 24 $7,691,000

Fine Co. Books

Debit : Building 24 $4,283,000

Debit : Accumulated Depreciation Building 24 $4,796,000

Credit : Cost of Building 24 $9,079,000

Explanation:

Where an exchange transaction lacks commercial substance, the accounting standard IAS 16 requires that the Asset that is acquired is measured at the Carrying Amount of the Asset given up, and no gain or loss can be estimated reliably.

Carrying Amount is Cost of Asset minus Accumulated Depreciation

The Carrying Amounts for Building 24 and Building M can now be calculated as follows -

Carrying Amount :

Building 24 = $7,691,000 - $3,528,000 = $4,163,000

Building M = $9,079,000 - $4,796,000 = $4,283,000

Then, apply the Carrying Amounts as new cost of assets acquired for Both Companies as required by the standard.

5 0

3 years ago

Earned income and capital gains (or "portfolio income") are acquired in different ways. Which statement describes how they are d

Lisa [10]

The answer is B. I just had this question on Edgenunity.

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3 years ago

Read 2 more answers

When the policies of a non-profit organization and the beliefs or policies of a donor do not match or are contrasting, it leads

zaharov [31]

When the policies of a non profit organization and the beliefs or policies of a donor do not match or are contrasting, it leads to a conflict.

There are a variety of policies that non profit organizations must follow in order to remain operational. These policies include financial policies, fundraising policies, and policies regarding the distribution of resources for a non profit.

Non profit organizations must be careful to adhere to these policies, as any deviations could jeopardize their tax-exempt status. Additionally, non profit organizations must be transparent in their policies and procedures, as this is essential to maintaining the public's trust and support.

To know more about Organization, click here.

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#SPJ4

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1 year ago

Brian is a 25% partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (insi

pentagon [3]

Answer:

The amount is $4,000 and Brain character reflects the capital gain.

Explanation:

Partnership: In partnership, there are two or more partners who are ready to share the profit or losses in their profit-loss sharing ratio.

The computation is shown below:

= Brain's basis - the inside basis

= $16,000 - ($20,000 - $8,000)

Since the brain basis show excess amount than inside basis which reflects the capital gain .

The inside basis is not relevant in the computation part. Hence, it is ignored.

6 0

3 years ago