The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
Answer:
I think you mean Patrick Jørgensen
Explanation:
He is a musical artist and if you don't mean Patrick Jørgensen I'm sorry
Answer: A. $25,000 B. $90,000 C. $25,000
Explanation:
A.
Land $100,000
Stock 25,000
Amount realized 125,000
Less: Adjusted basis (90000)
Recognized gain $35,000
When you receive book in an exchange which is similar or like kind, then the recognized gain is the lesser of either the boot or recognized gain. Here the lesser is the boot received which is $25,000. Therefore, recognized gain is $25,000
B.
Because the recognized gain is taken as $25,000 rather than $35,000. The $10,000 amount is considered as postponed gain. Hence,
$100,000 (land worth) - $10,000 (postponed gain) = $90,000 - basis of new land.
C.
The worth of the stock is the basis in the stock received. Which is $25,000
Answer:
AJ Manufacturing Company
Multi-Step Income Statement
For the year ended xx xx, xxxx
Revenue
Sales $160,000
Cost of Goods Sold
Variable Product cost $40,000
Fixed Product cost <u>$50,000</u>
<u>$90,000</u>
Gross Income / Income $70,000
Less: Operating Expenses
Variable Selling & Administrative costs $13,000
Fixed Selling & Administrative costs <u>$16,000 </u>
<u>$29,000</u>
Net Profit / Income <u>$41,000</u>
Explanation:
GAAP require two types of the income statements
- Single-Step Income Statement
- Multi-Step Income Statement
In single step income statement all revenue are calculated and all expense are deducted from revenue to calculate net profit.
In multi-step the expenses are classified in the product / manufacturing expense and operating expenses. First manufacturing expenses are deducted from the net revenue to calculate the gross profit and then operating expense are deducted to calculate operating / net profit / income.
Answer:
The value of Concord Corporation's inventory at May 31, 2022 is: $ 1,440
Explanation:
Weighted Average Cost Method Calculates a New Cost of Inventory following each Purchase
<u>Calculation of New Cost and Inventory value is as follows :</u>
Unit Cost = Total Cost / Total Units
=((240×$6)+( 480×$6)+(720×$6))/(240+480+720)
= $ 8,640 / 1440
= $ 6
Units Remaining = 240+480+720-1200
= 240
Inventory Value = 240×$ 6
=$ 1,440
