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3 years ago

A noisy monopoly

Business

1 answer:

ioda3 years ago

6 0

Answer:

C. sells products under its own label for a low price, and sells the virtually identical product with the same quality under a private label for a higher price.

Explanation:

A noisy monopolist practices price discrimination by selling the same product to different customer groups at different prices. For example, the product may be sold under its own label for a low price and also sold under a different private label to another group of customers for a higher price. Usually the higher paying customers believe that they are purchasing a better quality product and are willing to buy it at a higher price.

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An architecture firm earned earned $1520 for architecture services provided with the fee to be paid in the future. No entry was

GaryK [48]

Answer:

Revenue is understated by $1520

Profit is understated by $1520

Accounts receivable is understated by $1520

Retained earnings is understated by $1520

Explanation:

The guideline on recognition of revenue is accrual basis of accounting, which is that revenue is recognized when it has been earned, in other words when the business has discharged its obligation to the other party by a way of delivering goods or services to clients.

Specifically,by not recording an adjusting for the $1520 revenue earned but not yet received,the revenue for the period would be understated by $1520 as well as profit for the year.

Also,asset,accounts receivable would also be understated by $1520 including retained earnings at the end of the year

8 0

3 years ago

The following information pertains to Fox Co.'s defined benefit pension plan for 20x4:

kramer

Answer:

The effect will be the balancing figure of $210,000 (Return on plan assets)

Explanation:

Workings :

Assets Obligations

$ $

Asset Fair value/PV of obligatio at the beginning 750,000 800,000

Interest nil nil

Benefits paid (215,000) (215,000)

Employer Contribution 230,000

Return on Plan Assets exluding amounts in net

Interest (balancing figure) OCI * 210,000

Assets Fair Value/PV of obligation at the end 975,000 588,000

* OCI means Other Comprehenssive Income

The actual return which is $210,000 would increase the fair value of the asset at the end of the year. However, this will not be recognised in the income statement

This type of return on Plan Assets after a new valuation has been carried out at the end of the year will be treated as as a 're-measurement' and recognised in other comprehensive income.

This is usually the difference between the new value (end of the year fair value ) , and what has been recognized up to date (i.e the opening fair value balance,interest and any cash payments into or out of the plan).

4 0

4 years ago

A machine originally had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estim

lianna [129]

Answer:

d. 6 years

Explanation:

Depreciation is the loss of value of an asset over a period of time. The asset has a useful life period after which it is referred to as scrap.

The value of the asset after it's useful life is called the salvage value.

Useful life of an asset is estimated and deductions in its value are made till the useful life is exhausted.

In this scenario the useful life was initially taken to be 6 years.

After 4 years it was realised a mistake wasade and useful life is supposed to be 10 years

Since useful life of the asset remains contstant, the remaining years of useful life is the real estimate of useful life less years already used.

Remaining useful life = 10 - 4 = 6 years

6 0

3 years ago

Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 th

mihalych1998 [28]

Answer:

Built-in gains tax is $13,020 .

Explanation:

The built-in gains tax is one levied against an S corporation that used to be a C corporation, or received assets from a C corporation.

Here,

Gain= $80,000

Loss= $10,000

Holds= $8,000

Income= $65,000

Corporate tax= 21%

To calculate the built-in gains tax, we will need to calculate the net gain of the corporation and multiply it by the tax rate.

= Built-in-gain - built-in-loss - unexpired NOL

80,000 - 10,000 - 8,000 = 62,000

Then

62,000 x 0.21 tax rate = 13,020

= 13,020

4 0

3 years ago

Stryker Industries received an offer from an exporter for 27,000 units of product at $17 per unit. The acceptance of the offer w

Aloiza [94]

Answer:

$162,000

Explanation:

Income Statement - New Offer

Sales (27,000 x $17) $459,000

Less Variable Costs of the offer :

Variable manufacturing costs (27,000 x $11) ($297,000)

Net Income (Loss) $162,000

therefore,

the amount of income from the acceptance of the offer is $162,000

7 0

3 years ago