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Inessa05 [86]
3 years ago
6

1. A company sells a plant asset that originally cost $375,000 for $125,000 on December 31, 2017. The accumulated depreciation a

ccount had a balance of $150,000 after the current year's depreciation of $37,500 had been recorded. The company should recognize a
Business
1 answer:
qaws [65]3 years ago
6 0

Answer:

The company should recognize a loss on sale of plant asset of $100,00.

Explanation:

The cost = $375,000

Accumulated Depreciation = $150,000

Therefore, book value = $225,000

This book value is compared with the sales value of $125,000.

There is a difference of $100,000 ($225,000 - $125,000).

Since the book value is greater than the sales value, it means that the plant asset was sold at a loss.

The cost is the amount at which the plant asset was purchased.  The accumulated depreciation represents the cost that has been expensed so far.  The sales value is the amount at which the plant asset was sold.

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The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can
DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0
3 years ago
Part 1 Ken is the produce manager at saying way a large Supermarket that is part of a national chain. After completing a few man
Dvinal [7]

The people who may be significantly affected by the outcome of this negotiation by the manager include the employer and the customers.

<h3>Who is a manager?</h3>

It should be noted that a manager simply means an individual who oversees the team in a company and ensures that the goals of the company are achieved.

In this case, Ken is the produce manager at saying way a large Supermarket that is part of a national chain and after completing a few management courses offered by his employer, as well as five years of service at the supermarket, he is up for a promotion to assistant manager and is about to negotiate his new salary.

In this case, the people who may be significantly affected by the outcome of this negotiation by the manager include the employer and the customers. This was illustrated in the information.

Learn more about manager on:

brainly.com/question/24553900

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4 0
1 year ago
Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a ________ change
notka56 [123]

Answer:

B. negative, positive

Explanation:

Substitution effect : Price rise of a good makes it relatively expensive, decreases its demand. Price fall of a good makes it relatively cheap, increases its demand.

So: Substitution Effect is always negative as per above explanation.

Income Effect : Price rise of a good decreases real income/ real purchasing power of consumer & reduces demand of all goods. Price fall increases real purchasing power & increases demand of all goods.

Income effect is positive in case of Normal Goods, normal good demand is positively related to income. The effect is negative in case of inferior goods, inferior good demand is negatively related to income.

Hence: Price rise of rice - Substitution effect results in negative change  in rice consumption.  {∵substitution effect always negative}

Income Effect leads to positive change in rice consumption {∵price rise reduces real income & income effect is negative for inferior goods}

5 0
3 years ago
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Suppose an economist argues that it would be fairer if everyone in society had to pay the same portion of their income in taxes
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Answer:

Proportional Tax

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A proportional tax imposes the same flat rate (in %) on income as payable tax.

Other types of taxes are Progressive and Regressive Tax. In progressive, the higher you earn, the higher tax you pay while in Regressive, the higher you earn, the lower income tax paid and vice versa.

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