Answer:
A. It potentially results in better products for the customer.
Explanation:
When components for the production of a good are imported from other continent, such could potentially results in better products for the customer because most often than not, the exporting country has superior knowledge base in terms of manufacturing these component parts which can be utilized by the importing country.
Moreover, companies import components for various reasons; either to reduce or save cost or they found superior materials somewhere else . Where they found superior materials in in other continent, then the chances of making good or better product is high because of these superior components.
Also, one of the gains in globalization is that one can source for materials or components in other continent for products that can be made locally with high quality and value.
In accounting terms, an intangible asset is something of value that is not of physical nature. On the other hand, property, plant and equipment (PPE) are just as the name suggests. PPE refers to physical long-term assets, such equipment that is vital to a company's operations and has a definite physical component.
Answer: $35,000
Explanation:
Implicit rental price = Interest payment + Depreciation
Interest payment = 5% * 500,000
= $25,000
Implicit rental price is therefore:
= 25,000 + 10,000
= $35,000
Answer:
$78,280
Explanation:
Pretax accounting income 220,000
Permanent difference (14,000)
Temporary difference-depreciation (19,200)
Taxable income 186,800
From the taxable income we will determinate the tax payable:
186,800 x 38% = 70,984
The temporary diffrence will generate a deferred liaiblity
19,200 x 38% = 7,296
The accounting income tax expense, will be the sum of both concept:
70,984 + 7,296 = 78,280
Income tax expense 78,280 debit
deferrred income (liab) 7,296 credit
income tax payable 70,984 credit