Answer:
Journal entries will be as follows;
Explanation:
1.The machine purchased is an asset so machinery a/c will be debited.
The cash used to purchase the machine is an outflow so it's credited on the cash a/c
2. Electricity wiring on the machine is part of the acquisition cost, hence we debit machinery account and the cash paid for that is credited on cash a/c
3. Cost of securing it in place is also an operating cost hence you debit machinery a/c and credit the cash used to pay for it in the cash a/c
<u>Journal entries</u>
1. Machinery account Dr 192,000
Cash account Cr 192,000
2.Machinery account Dr 8,000
Cash account Cr 8,000
3.Machinery account Dr 1,600
Cash account Cr 1,600
In a world with perfect information, the answer is C. Higher returns compensate the investor for taking on higher risk.
Answer:
Maxwell world consider choice equal to $310000
Explanation:
given data
accept a salary = $60,000
salary = $25,000
bonus = 20% of net income
to find out
amount of income would be necessary so that Maxwell would consider
solution
we get here income by bonus that is express as
bonus = 2 ( income - bonus - salary ) ..............1
3500 = 2 ( income - ( 0.2 × 35000 ) - ( 0.2 × (75000 + 35000) )
solve it we get
income = $310000
so Maxwell world consider choice equal to $310000
