Answer:
A price ceiling is a government- or group-imposed price control, or limit, on how high a price is charged for a product, commodity, or service. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive.
Answer:
The amount of depreciation expense for the year is $400
Explanation:
The amount of depreciation expense for the year using the Straight Line Method (SLM) as:
Depreciation expense = Asset cost - Salvage value / Number of years of useful life × Portion of year that will be expensed
where
Assets cost is $10,000
Salvage value is $2,000
Number of years of useful life is 5 years
Portion of year that will be expensed is 3 months / 12 (For 3 months from October to December)
Putting the values above:
Depreciation expense = $10,000 - $2,000 / 5 × 3/12
= $8,000 / 5 × 3/12
= $1,600 × 3/12
= $400
Therefore, the amount of depreciation expense for the year using the Straight Line Method (SLM) amounts to $400
Answer: Concert tickets sold for next month's performance
Explanation:
Unearned revenue is the payment received by a business for services yet to be rendered or product that has not yet been delivered to the customer. Therefore, the tickets sold for next month performance is a good example of an unearned revenue.
A, the rent. If confused between A and B, remember that electricity is a cost that can fluctuate over the amount of business, as well as C and D.
Answer:
d. $2,676
Explanation:
The computation of the horizontal value is shown below:
FCF1 = (100 × 1.06) = 106
FCF2 = (106 × 1.06) = 112.36
FCF3 = (112.36 × 1.06) = 119.1016
FCF4 = (119.1016 × 1.06) = 126.247696
FCF5 = (126.247696 × 1.06) = 133.8225578
Now
Horizon value is
= FCF5 ÷ (Cost of capital - Growth rate)
= 133.8225578 ÷ (0.08 - 0.03)
= $2,676
Hence, the correct option is d.