<u>Calculation of Total Assets:</u>
Total assets based on the given transactions can be calculated as follows:
Cash Received from Investors $6,900
Add: Amount Borrowed from Local Bank $3,900
Add: Supplies Purchased on account $1,190
Add: Equipment purchased $6,900
Less: Cash Paid for purchase of equipment -$2,190
Total Assets = $16,700
Hence based on the given transactions, the company's total assets are <u>$16,700</u>
GDP is a Gross Domestic Product it including exports minus imports.
Hope it helped
Answer:
$43.75
Explanation:
Dividend discount model with zero growth assumes that the Company shall continue to pay the same amount of dividend in infinity. The formula for calculating price of such stock is
Price = Annual Dividend / Discount rate
Price = $3.5 / 8%
Price = $43.75 / per share
Answer:
a. greater variety and lower prices
Explanation:
Due to the comparative advantages, countries can produce the product that they have proficiency. For example, if there are 2 countries, A and B. A have a skill of producing tasty wine, they can produce better quality of wine than B with the lower cost. When the trade barriers are reduced, the wine from A will be sold in B, the customer will have more choices of wine in the market and the price will relatively less different comparing to the price when the high barriers exist.
Answer:
$10,500
Explanation:
The computation of depreciation expense using the straight line method is seen below;
= [Original cost - Residual value] ÷ Useful life
= [$160,000 - $20,000] ÷ 10 years
= [$140,000] ÷ 10 years
= $14,000
Using straight line method, the depreciation value is the same for the remaining useful life.
Also, from April 1 to 31 December(9 months), the depreciation expense would be;
= $14,000 × 9/12
= $10,500
Therefore, the amount to be recorded as depreciation expense at December 31, 2015 is $10,500
