Answer:
The correct answer is: enter the market; exit the market.
Explanation:
In a perfectly competitive market, there is no restriction on entry and exit of firms. So profits will attract other potential firms to join the market. And when the existing firm incurs losses it will cause them to stop operating and exit the market.
Because of this, the firms in competitive settings are motivated to produce at a low cost and they come up with new ideas to please customers so that they earn a profit.
Answer:
Crane Company
If Crane Company uses LIFO, the value of the ending inventory is:
= $440.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
1/1/20 inventory 150 $4.00 $600
1/15/20 Purchase, 70 5.10 357
1/28/20 Purchase, 70 5.30 371
Total 240 $1,328
1/31/20 inventory 110 $4.00 $440 ($4.00 * 110)
b) The LIFO method assumes that goods that are sold first are the last that were purchased. Therefore, the cost of the ending inventory is usually based on the cost of the earlier inventory purchased. In our case, the cost per unit was based on the beginning inventory balance.
Answer:
Jessica calls her colleagues informing them about her new bakery business.
Explanation:
Answer:
$0
Explanation:
In the case when the depreciation method is changed so it should be treated propectively. The past year depreciation amount remains the same. So the starting year of change having no difference should be produced but the beginning to the closing year of change the deferred tax liability should be recorded the difference occured in the future that lies between the book and tax depreciation
So, it should be zero
Answer:
One share of this stock worth to you today is $18.08
Explanation:
According to the question, we have the following data:
D1 = $3.30
g = 0.0375
Ke = 0.22
one share of this stock worth to you today = P0
Hence to calculate the P0 we have to use the following formula:
Ke = D1/P0 + g
0.22 = 3.3/P0 + 0.0375
P0 = $18.08
One share of this stock worth to you today is $18.08
