1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stira [4]
4 years ago
6

In January of 2018, the Falwell Company began construction of its own manufacturing facility. During 2018, $6,000,000 in costs w

ere incurred evenly throughout the year. Falwell took out a $2,500,000, 10% construction loan at the beginning of the year. The company had no other interest-bearing debt. What amount of interest should Falwell capitalize in 2018?a. $600,000 b. $300,000 c. $250,000d. $0
Business
1 answer:
Zielflug [23.3K]4 years ago
8 0

Answer:

c. $250,000

Explanation:

Data given in the question

Cost incurred evenly throughout the year = $6,000,000

Took out value = $2,500,000

Interest = 10%

So by considering the above information, the amount of interest capitalize is

= Took out value × Interest

= $2,500,000 × 10%

= $250,000

By multiplying the took out value with the interest we can get the amount of interest that should be capitalized for the year 2018

You might be interested in
ou are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At
Scilla [17]

Answer:

The flood shifts the supply to the left.

The increase in healthcare costs shifts the supply curve to the left.

Explanation:

An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.

A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.

6 0
3 years ago
Rosie's Flower Shop sells bouquets of roses for $15 each. If Rosie hires 10 workers, she can sell 500 bouquets per week. If she
klasskru [66]

Answer:

The correct answer to this question is A) with the addition of 11th worker , the marginal profit ( for 11th worker ) of Rosie's flower shop would be $500.

Explanation:

Marginal profit can be defined as the additional amount of profit that a company earns because of an additional unit that had been produced.

Here we can calculate what marginal profit would be for the 11th worker as-

Workers   Selling price             Cost price                 Profit

10             $7500 (500 x $15)    $4000 (10 x $400)   $3500

11              $8400 (560 x $15)    $4400 (11 x $400)   $4000

So from the given above information we can say that if we take out the marginal profit for 11th worker it would be $500 ( $4000 - $3500 ).

8 0
3 years ago
If an advertiser places a TV commercial using a​ lonely, lost puppy to sell its​ products, then that advertiser is said to be ut
ryzh [129]

Answer:

correct answer is Sadvertising

Explanation:

these type of advertiser is said to be Sadvertising because it is that type of advertising by which advertiser creator is use some certain type of strategy by which they play on peoples emotion and feeling of sadness.

nowadays emotional advertising become popular in the recent year,  

many firms work for creating strong emotional ties about their product

they think ad. with emotional reaction is viewed  more likely to be shared  

so here the correct answer is Sadvertising

5 0
3 years ago
When visiting your sister, you notice that her infant enjoys watching a mobile that hangs over his head. of the various objects
katovenus [111]
The big chainsaw is ur answer I bieleve
3 0
3 years ago
Calculate the effective annual interest rate for the following: a. A 3-month T-bill selling at $97,270 with par value $100,000.
WINSTONCH [101]

Answer:

(a) The effective annual interest rate for a 3-month T-bill selling at $97,270 with par value $100,000 is 11.71%

(b) The effective annual interest rate for a 13% coupon bond selling at par and paying coupons semiannually is 13.42%

Explanation:

(a)  A 3-month T-bill selling at $97,270 with par value $100,000

EAR =[par value /price]^n-1}

n = 3 months or 12/3 = 4 times  in a year

= [100,000/97,270]^4 - 1

=[1.028066]^4 -1

= 1.1171 - 1

= .1171 or 11.71%

b) EAR(coupon bond) = [1+.13/2]^2  -1

=[1+.065]^2 -1

= [1.065]^2 -1

= 1.1342 - 1

= .1342 or 13.42%

7 0
4 years ago
Other questions:
  • Why can a bank afford to pay interest rate on a savings account
    6·2 answers
  • Initial step in the strategic marketing process is to begin planning by conducting a _______. business portfolio analysis. diver
    13·2 answers
  • Data for a Poisson with mean 10 A BigJet flight from Philadelphia to Boston has 60 seats. The high fare is $400 and the low fare
    5·1 answer
  • You're considering an investment that you expect will produce a return of 77 percent next​ year, and you expect that your real r
    5·1 answer
  • There are five basic steps to personal financial planning and their related tasks. Arrange these steps and examples of related t
    9·1 answer
  • Unless otherwise prohibited, drivers must use the three-point turn to
    12·1 answer
  • Products that the consumer does not know about or knows about but does not initially want are referred to as
    15·1 answer
  • When considering the quick service restaurant competition it would be most important for Wendy's to consider not only the offeri
    9·1 answer
  • Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts
    10·1 answer
  • With what kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!