Answer:
The correct answer is A. Employers bear investment risk relating to the plan.
Explanation:
The first statement is false, because the main actors in that case would not be employers, but employees. The contribution plan is defined as a pension plan in which the company agrees to make monetary contributions each year for the benefit of the employee. For example, the company can contribute 1% of the salary to a pension fund every month. The employee can also contribute part of his salary to this plan.
Answer:
Debit Rent Expense $2,000; credit Prepaid Rent $2,000.
Explanation:
Assuming On December 31, the Company's Prepaid Rent account had a balance before adjustment of the amount of $6,000 which means that if the Three months' rent was paid in advance on December 1, The adjusting entry needed on December 31 is:
Debit Rent Expense $2,000
Credit Prepaid Rent $2,000.
($6000/3month)
(To record Rent Expense)
The correct option is C. The price of a product is set where both buyers and sellers are satisfied that phrase describes the market equilibrium.
<h3>
What is the difference between market price and equilibrium price?</h3>
Demand and supply are interdependent, and this relationship determines market pricing. Demand and supply forces are balanced at an equilibrium price. Prices have a propensity to return to this equilibrium unless certain demand or supply characteristics alter.
The price at which the quantity of supply and demand is balanced is known as the equilibrium price. The point where the demand and supply curves cross is what determines it. There is a surplus when there is more supply of an item or service than there is demand for it at the going rate; this forces the price down.
Thus, C is the right answer. The market equilibrium is defined as the price of a good being determined at which both buyers and sellers are content.
Learn more about Equilibrium here:
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Answer:
$7,000
Explanation:
The computation of the amount of purchasing department allocated to assembly department is shown below:
= Total purchasing department cost × number of purchase order ÷Total numbers of purchase orders in overall operating departments
= $35,000 × 4 ÷ 20
= $7,000
The 20 number of purchase orders is come from
= 16 + 4
= 20
We simply applied the above formula
Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months (
) = $3.20
European call (K) = $35
The price (P) is given by:
![P=V_c+K.e^{-rT}-S(0)+Dividends\\But, Dividends = 0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Therefore, P=V_c+K.e^{-rT}-S(0)+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Substituting:\\P=3.2+35*e^{-0.06*0.5}-36.5+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\P=3.2+33.9656-36.5+0.4926+0.4852\\P=1.64](https://tex.z-dn.net/?f=P%3DV_c%2BK.e%5E%7B-rT%7D-S%280%29%2BDividends%5C%5CBut%2C%20Dividends%20%3D%200.5%2Ae%5E%7B-0.25%2A0.06%7D%2B%200.5%2Ae%5E%7B-0.5%2A0.06%7D%5C%5CTherefore%2C%20P%3DV_c%2BK.e%5E%7B-rT%7D-S%280%29%2B0.5%2Ae%5E%7B-0.25%2A0.06%7D%2B%200.5%2Ae%5E%7B-0.5%2A0.06%7D%5C%5CSubstituting%3A%5C%5CP%3D3.2%2B35%2Ae%5E%7B-0.06%2A0.5%7D-36.5%2B0.5%2Ae%5E%7B-0.25%2A0.06%7D%2B%200.5%2Ae%5E%7B-0.5%2A0.06%7D%5C%5CP%3D3.2%2B33.9656-36.5%2B0.4926%2B0.4852%5C%5CP%3D1.64)
The price of a 6-month, $35.00 strike put option is $1.65