Answer:
Bad debt expense for 2016 should be: c. $8,520
Explanation:
As of December 31, 2016, Amy Jo's Appliances had accounts receivable of $313,000 and the allowance for uncollectible accounts should be 3% of accounts receivable
Bad debts are estimated: 3% x $313,000 = $9,390
Amy Jo's Appliances had $870 in the allowance for uncollectible accounts
Bad debts expense = $9,390 - $870 = $8,520
The entry will be made:
Debit Bad debts expense $8,520
Credit Allowance for uncollectible accounts $8,520
Answer: West Mudville should specialize in, and export, baseball bats.
Explanation:
Each country should specialize in the good that it has a lower opportunity cost in producing.
West Mudville
Opportunity cost of producing baseball bats = 9/9 = 1 baseball
Opportunity cost of producing baseball = 9/9 = 1 baseball bat
East Mudville
Opportunity cost of producing baseball bats = 8/4 = 2 baseballs
Opportunity cost of producing baseball = 4/8 = 0.5 baseball bats
From the above, West Mudville has a lower opportunity cost than East Mudville in the production of baseball bats and so it should specialize in and export that.
Answer: $13125
Explanation:
Firstly, we should note that in section 83(B), tax is being paid based on the stock's fair market value. Therefore, the income tax that will be due on this transaction in the year of election will be:
= Number of shares × Price × Tax rate
= 1500 × $25 × 35%
= 1500 × $25 × 0.35
= $13125
Capital goods are those good used to make consumer goods and services.
Thus answer is D
Capital goods is also known as intermediate goods, durable goods or economic capital.
Answer:
C) Condensing the firm's cash inflows into fewer years without lowering the total amount of those inflows.
Explanation:
When you determine the net present value of project, the longer the project, the lower the present value of its cash flows. A way to try to increase the NPV of a project is to try to shorten its life span without reducing the value of its cash flows.
This sounds much simpler than it is. Since your project should produce cash flows in a shorter time, you will have to probably shorten the time periods of some activities, e.g. building new facilities, research and development, etc.
