Answer:
1. $2.5 million
2. $0
Explanation:
1. Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored
In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value - fair value
= $6.5 million - $4.0 million
= $2.5 million
2. In this case, the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized i.e zero amount
Answer:
The money multiplier of the economy is 20
Explanation:
Money multiplier is the term of economics which is defined as the maximum amount, the money supply could rise grounded on the increase in the reserve in the system of banking.
The formula used for computing the money multiplier is as:
Money Multiplier = 1 / r
where
r is the reserve ratio that is 5%
So, putting the same value above:
Money Multiplier = 1 / 5%
Money Multiplier = 20
<span>Derek's
company was bidding on the construction of a new penguin display at a
world-famous zoo. when putting together his bid, derek began by
determining what the zoo would be willing to pay for the structure, and
then subtracting a reasonable profit for the company. the result would
be the cost of production. for example: if price to zoo = $6 million,
and company profit margin = $2 million, the cost to produce cannot
exceed $4 million. [$6 million - $2 million = $4 million.] the
demand-based pricing strategy in this example is called target costing.
</span><span>Target costing is an approach to determine a product's life-cycle cost
which should be sufficient to develop specified functionality and
quality, while ensuring its desired profit. It involves setting a target cost by subtracting a desired profit margin from a competitive market price.</span>
Answer:
True
Explanation:
When you have an amount of money allotted to you its good to come up with a plan on how to spend it efficiently.
