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Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."
Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:
The accounting benefit is nothing more than the difference between income and cost. In this case it is still $50000.
The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.
8 C, 11 B, 13 D, 14 B, 20 B
Answer:
C. Loss of $800
Explanation:
Given that
Purchase price = 14400
Depreciation = 8000
Selling price = 5600
Thus,
Value of asset after depreciation = Purchase price - Depreciation
= 14400 - 8000
= 6400.
Therefore,
Difference between current value and price sold = value of asset after depreciation - selling price
= 6400 - 5600
= 800
Therefore, there was a loss of $800, since the selling price is less than the value of asset after depreciation.
Answer:
B) liable to Niki under the doctrine of promissory estoppel.
Explanation:
In contract law, promissory estoppel refers to a theory that when you make a reasonable promise but later you decide to back down, the other party may sue you in order to force you to fulfill your promise.
This theory has been upheld by the Supreme Court in Cohen v. Cowles Media Co. 501 US 663 (1991). So a reasonable promise will have the same binding effect as a contract.
