If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
Answer:
Oligopoly
Explanation:
An oligopoly is a market structure which is caracterized by having few competitors and each one has market power to change the equilibrium price or quantity. According to this, Henry´s competitor had the market power to reduce the price of his products. Also, it might be some barries to entry (to the market) and that is why the problem states that Henry had to do a huge investment (not everyone can do it).
Answer:
The Journal entries are as follows:
(i) Sale of Equipment
Cash A/c Dr. $20,300
Accumulated Depreciation A/c Dr. $22,500
To Equipment $40,000
To Gain $2,800
(To record the sale of equipment)
(ii) Sale of Equipment
Cash A/c Dr. $12,700
Accumulated Depreciation A/c Dr. $22,500
Loss A/c Dr. $4,800
To Equipment $40,000
(To record the sale of equipment)
Workings:
Accumulated Depreciation = [(40,000 - 2,500) ÷ 5] × 3 years
= 7,500 × 3 years
= $22,500
A) The cost to rebuild the house
This is due to the fact that there is no outstanding loan amount since the mortgage has been paid off.