Answer:
Carrying value decreases and interest expense increases
Explanation:
Bonds issued at a discount has its market price below the face value, which means that the market interest rate exceeds the coupon rate of the bond.
When bonds are issued at a discount, what happens to the carrying value and interest expense over the life of the bonds is that carrying value decreases and interest expense increases.
Answer: threat of new entrants will prevent the prices from rising above the competitive level.
Explanation:
A contestable market has competition such that sellers cannot unilaterally decide to sell at a certain price. They have to sell at a competitive price that is set by the market to ensure that goods are allocated efficiently.
If the prices attempt to rise above this competitive level, new sellers will enter the market so as to make a profit which would have the effect of driving the price back down to where it was and even lower if even more sellers come in. The price is therefore maintained to ensure that this does not happen.
Answer:
a) $37,500
Explanation:
In order to determine the depreciation for year 1 based on the units-of-production method, we apply the formula below:
Annual Depreciation=
Depreciable Value
×
Units produced during the year
/Estimated total production
Depreciable Value = Original cost – Scrap value
depreciable value=$300,000-$50,000=$250,000
Units produced during the year=6,000 hours
Estimated total production in hours=40,000 hours
first-year depreciation=$250,000*6000/40000
first-year depreciation=$ 37,500.00
Answer:
Management by Objectives (MBO).
Explanation:
According to the statement, managers at Lowalt listen to their subordinates´ ideas, and the latter actively participate in setting goals and objectives. That is the fundamental characteristic of Management by Objectives (MBO), a model that seeks to optimize the performance of a company by adopting a series of objectives agreed by both owners and workers. Under this approach, employee participation makes the organization function harmoniously as a whole, as its internal interest groups would be aligned under agreed common purposes.