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podryga [215]
3 years ago
6

Some of the mangos from your neighbor's mango tree drop into your yard. You don't like mangos and the fallen mangos make it hard

er to mow your lawn. Your neighbor values the tree at $300, and your cost of dealing with it is $500. If your neighbor has the legal right to keep the tree, what would be an efficient outcome according to the Coase theorem?
A. Your neighbor pays you $400 to not have the tree cut down.
B. Your neighbor pays you $200 to not have the tree cut down.
C. You pay yur neighbor $400 to cut the tree down.
D. You call city officials to have the tree cut down.
Business
1 answer:
Ksenya-84 [330]3 years ago
7 0

Answer:

A.

Explanation:

Your neighbor pays you $400 to not have the tree cut down

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Consultant Co. is in the business of public relation consulting. The firm has two units: Government (working with various levels
Leto [7]

Answer: See attachment

Explanation:

a. Based on the information in the attachment, the indirect costs that's allocated to the units will be:

Government = 450,000

Corporate = 750,000

The expected revenue that can be generated from the government unit will be:

= 495,000 × (100% + 15%)

= 495,000 × 1.15

= $569250

b. Based on the information given, the indirect costs that's allocated to the units will be:

Government unit = 360,000

Corporate unit = 840,000

The revenue from the government will be:

= 405000 × (100% + 15%)

= 405000 × 115%

= 405000 × 1.15

= $465750

c. If the firm chooses total hours worked as the cost driver, the indirect costs be allocated to the two units as:

Government = 400,000

Corporate unit = 800,000

Revenue from government will be:

= 445000 × 115%

= 445000 × 1.15

= $511750

Check attachment for further explanation.

6 0
2 years ago
"Have you considered paying workers for what they produce? I found that when I paid employees by the piece, their productivity w
madam [21]

Answer:

This a "scientific management" also known as Taylorism . The main approach of this school is reduce the waste to minimal and optimize workforce. Paying an employee per production will be a taylorism approach since you only pay for the effective production and if the employee wants to earn more money, the employee will have to improve his productivity in order to produce and earn more.

Explanation:

7 0
3 years ago
When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the ann
7nadin3 [17]

Answer:

Sunland Inc.

Adjusting Journal Entries:

Account Titles and Explanation     Debit      Credit

Interest Expense                            $1,152

Interest Payable                                          $1,152

To record accrued interest for 8 months.

Rent Revenue                               $2,600

Deferred Revenue                                       $2,600

To record deferred rent revenue for 2 months.

Supplies Expense                         $1,570

Supplies                                                       $1,570

To record supplies expense for the period.

Explanation:

a) Data and Calculations:

1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)

2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)

3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)

b) The above adjusting journal entries are made in order to reverse the earlier entries made.  The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles.  These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.

8 0
3 years ago
At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubt
Wewaii [24]

Answer:

  • (a) Prepare the entries to record sales and collections during the period.

Dr Accounts Receivable  $ 800,000  

Cr Sales  $ 800,000

Dr Cash   $ 763,000  

Cr Accounts Receivable   $ 763,000

  • (b) Prepare the entry to record the write-off of uncollectible accounts during the period

Dr Allowance for Uncollectible Accounts $ 7,300  

Cr Accounts Receivable   $ 7,300

  • (c) Prepare the entries to record the recovery of the uncollectible account during the period.

Dr Accounts Receivable  $ 3,100  

Cr Allowance for Uncollectible Accounts  $ 3,100

Dr Cash $ 3,100  

Cr Accounts Receivable   $ 3,100

  • (d) Prepare the entry to record bad debt expense for the period.

Dr Bad Debt Expense $ 20,200  

Cr Allowance for Uncollectible Accounts  $ 20,200

Explanation:

  • Initial Balance  

Dr Accounts Receivable   $ 200.000

Cr Allowance for Uncollectible Accounts  $ 9.000

  • During the period, it had net credit sales of $800,000  

Dr Accounts Receivable  $ 800.000  

Cr Sales  $ 800.000

  • Collections of $763,000  

Dr Cash $ 763.000  

Cr Accounts Receivable   $ 763.000

  • It wrote off as uncollectible accounts  

Dr Allowance for Uncollectible Accounts $ 7.300  

Cr Accounts Receivable   $ 7.300

  • A $3,100 account previously written off as uncollectible was recovered  

Dr Accounts Receivable  $ 3.100  

Cr Allowance for Uncollectible Accounts  $ 3.100

Dr Cash $ 3.100  

Cr Accounts Receivable   $ 3.100

  • Assuming 5% of accounts receivable, the journal entry:  

Dr Bad Debt Expense $ 20.200  

Cr Allowance for Uncollectible Accounts  $ 20.200

  • FINAL Balance  

Dr Accounts Receivable  $ 229.700  

Cr Allowance for Uncollectible Accounts  $ 25.000

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessar to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0
3 years ago
Sidney took a $150 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee
strojnjashka [21]

Answer:

A.) 3%; B.) 2% ; C) $155; D) $150

9) $78 ; $1278

10) a) $5940; b) $19440; c) $279; D) 21.64%

Explanation:

Amount = $150

Cash advance rate = 2% = 0.02

A.) cash advance fee = $150 × 0.02 = $3

B.) Interest for one month at APR of 18%

Interest = principal × time × rate

$150 × (1÷12) × 0.16 = $2.00

C.) Total amount paid

$(150 + 3 + 2) = $155

D.) $150

9.)

Interest = principal × rate × time

t = 6 months = (6/12)

Rate (r) = 0.13

Principal = $1200

Interest = $1200 × 0.13 × 0.5 = $78

Total amount = down payment + principal borrowed + interest

Total amount = 0 + $1200 + $78 = $1,278

10.)

Price = $13,500

Down payment = $2700

Loan required = $10,800

Add-on rate = 11% = 0.11

Period = 5 years

A.) Interest = $10,800 × 0.11 × 5 = $5,940

B.) Total cost = Down payment + Principal borrowed + interest paid

$2700 + $10,800 + $5940 = $19,440

C.) Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments

Monthly Payment = ($10800+ $5940) / (12×5)

Monthly payment = $16740 ÷ 60 =$279

D.) Annual percentage rate (APR)

APR= (2 × n × I) / [P × (N + 1)]

APR = (2 × 12 × 5940) / [10800 × (60+1)]

APR = 142560 ÷ 658800

APR = 0.21639

APR = 21.64%

7 0
2 years ago
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