Answer: The property will have to sell for $90,322.58 for the Sellers to net $75,000.
We arrive at the answer as follows:
We need to add the expenses to the net amount and deduct any refunds from it to arrive at the Selling price before the sales commission.
So, we have:
Net $75,000
Add: Mortgage Balance $ 7,500
Closing Expenses <u>$2,500</u> <u>$10,000 </u>
Total $85,000
Less: Refund of prepaid taxes -<u> $ 1,000</u>
<u>Total before sales commission</u> <u> $84,000 </u><u> </u>
Since sales commission is 7%, this $84,000 corresponds to 93% of Sales Price.
Hence sales price is .
Globalization is the increase in the flow of goods, services, capital, people, and ideas across international borders. Globalization changes the way nations, businesses and people interact. Specifically, it changes the nature of economic activity among nations, expanding trade, opening global supply chains and providing access to natural resources and labor markets.
Answer:
Moonligh Bay Resorts will report a Non-current liability of $126 million
Explanation:
The question is to determine whether Moonlight Bay Resorts is to report an asset (current or non-current) or a liability (current or non-current) in its December 31st 2021 Balance Sheet
The step is to determine the classification of the items in the balance sheet
This is done as follows
Description Amount ($)
Total Deferred Tax liability (168 million + 120 million) 288 million
(Deferred tax liabilities related to
both current and non-current assets)
Total Deferred tax asset (102 million + 60 million) (162 million)
The net deferred tax liability 126 million
Since, under the International Financial Reporting Standards Deferred Tax Liability is a Non-current liability, it means <u>Moonligh Bay Resorts will report a Non-current liability of $126 million</u>
Answer:
Multiplier effect
Explanation:
The term used to describe the impact of manufacturing process on the entire economy is called Multiplier effect. Multiplier effect measures the impact on other industries with an increase in economy of a specific industry.
It is the increase in final income with an injection of demand in the market flow. There when a manufacturing process of any specific industry increases or decreases there is a relative impact on the entire economy.
Answer:
Firms may be inclined to keep their workers’ wages above the equilibrium level.
Explanation:
The efficiency wage theory states that if an employer increases the wage of his/her employees, they will be motivated and their productivity will increase. The increase in productivity should offset the increased labor costs. So the costs of higher wages should be recouped through increased productivity. Higher wages also reduce worker turnover, reducing hiring and training costs.