Answer:
C. Estimated Warranty Payable for $15,900
Explanation:
The journal entry is shown below:
Warranty expense $15,900
To Estimated warranty liability $15,900
(Being the warranty expense is recorded)
The computation is shown below:
= Monthly sales × estimated given percentage
= $530,000 × 3%
= $15,900
We simply debited the warranty expense as it increases the expenditure and credited the liabilities as it also increases the liabilities account
It’s the second one about practice you nerd
Answer:
Casey's opportunity cost of producing 1 kg of potatoes is 5 kg of steak.
Casey's opportunity cost of producing 1 kg of steak is 0.2 kg of potatoes.
Rick's opportunity cost of producing 1 kg of potatoes is 3 kg of steak.
Rick's opportunity cost of producing 1 kg of steak is 0.33 kg of potatoes.
Casey should produce steak while Rick should produce potatoes, since Rick has a comparative advantage in producing potatoes (lower opportunity cost) and Casey has a comparative advantage in producing steak.
As long as the price of steak per kilogram of potatoes is less than 5 kg of steak and more than 3 kg of steak, then both would win. In order for both of them to win is a similarly proportional way, the exchange price should be 4 kg of steak per kg of potatoes.
Answer:
The speculative element of this carry trade is that its success is based upon the belief that there will be no adverse movement in exchange rates or interest rates.
Explanation:
A carry trade is when you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make money on the difference between the interest rates.
