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2 years ago

When does it make sense for government to interfere with a pure market outcome?

1 answer:

5 0

There are several situations when the government has to interfere with a pure market outcome. If the price of a product rises without any significant cause or if there is more supply than demand of a market, then the government can put a price ceiling or floor price of a product. This is purely to keep the economy of a country or state stable.

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Machinery was purchased for $460000 on January 1, 2022. Freight charges amounted to $15000 and there was a cost of $34000 for bu

Andrews [41]

Answer:

The amount of accumulated depreciation at December 31, 2023 = $88,800.

Explanation:

<u>Determining the actual acquisition cost.</u>

The actual acquisition cost = Purchase value + freight charges + Installation costs.

The actual acquisition cost = 460,000 + 15,000 + 34,000.

The actual acquisition cost = $509,000.

<u>Determining the depreciable cost.</u>

The depreciable cost = acquisition cost - Salvage value.

The depreciable cost = 509,000 - 65000.

The depreciable cost = $444,000.

<u>Determining annual depreciation expense.</u>

Annual depreciation expense = depreciable cost / number of years.

Annual depreciation expense = 444,000 / 10.

Annual depreciation expense = 44,400.

<u>Determining the accumulated depreciation .</u>

The accumulated depreciation = annual depreciation expense × number of years.

The accumulated depreciation = 44,400 × 2.

The amount of accumulated depreciation at December 31, 2023 = $88,800.

6 0

3 years ago

When buying groceries, Suki swipes a card to electronically subtract money from her checking account to pay. She is essentially

9966 [12]

Answer:

A. a debit card

Explanation:

5 0

2 years ago

In 2018, its first year of operations, Kimble Corp. has a $740,000 net operating loss when the tax rate is 35%. In 2019, Kimble

ivanzaharov [21]

Answer:

Explanation:

The journal entries are shown below:

a) Deferred tax asset A/c Dr $259,000 ($740,000 × 35%)

To benefit due to loss carry forward $259,000

(Being recording of the carry forward amount is done)

Benefit due to loss carry forward A/c Dr $259,000

To allowance to reduce deferred tax to expected realizable value $259,000

(Being allowance amount is recorded)

b) Income tax expense A/c Dr. $101,500 ($290000 × 35%)

To Deferred Tax Asset A/c $101,500

(Being recording of current tax and deferred tax is done)

Allowance to reduce deferred tax to expected realizable value Dr $101,500

To benefit due to loss carry forward $101,500

(Being allowance eliminated and carry forward loss is recorded)

5 0

3 years ago

In the long run, each firm in a competitive industry earns

madam [21]

Answer:

The correct answer is option B.

Explanation:

In a competitive industry there is no restriction on entry or exit of firms in the market. So, when in the short run the firms are enjoying super normal profits or positive economic profits, this would attract potential firms to join the industry in the long run.

As a result the industry supply will increase in the long run. The increase in supply would cause the price to fall. This would further contribute in reducing revenue and profit.

This process will continue till the profit is reduced to zero. If profit falls below zero, then firms incurring loss will exit the industry. Then again zero profits will be restored by reduction in supply and increase in price.

So, we can say that perfectly competitive firms will have zero economic profits or only normal profits in the long run.

5 0

3 years ago

Prepare the necessary general journal entries for the month of October for Crane Retail for each situation given below. Crane us

harkovskaia [24]

The necessary journal entries for October month are attached below in the image :

<h3>What do you mean by journal entries?</h3>

All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.

All the necessary journal entries are attached below:

Learn more about journal entries:

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3 0

2 years ago