Answer:
The correct answer is letter "B": extends the law of one price to a group of goods.
Explanation:
Purchasing Power Parity or PPP compares different country's currencies through a market basket of goods approach. Two currencies are in PPP when a market basket of goods, taking into account the exchange rate, is priced the same in both countries.
The Law of one price states that individual and identical goods or services will have the same price if there were no friction between global markets. Thus, <em>the PPP approach would be the extent of the law of one price adding the exchange rates.</em>
Answer:
Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?
A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
Explanation:
Level capacity strategy
The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall
Usually it is done on a monthly payment, so I would say it is C. Monthly
Answer:Christie's 2020 gross income= $172,000
Explanation:
According to IRS, under the tax benefit rule Amount of punitive damages and amount of recovered medical expenses is to be added to gross income, $240,000 for the loss of future income of will not be included.
Therefore we have that
Christie's 2020 gross income=Punitive damages + Recovered medical expenses = $160,000 + $12,000 = $172,000
