Answer:
There is loss of $900 on investment.
Explanation:
The purchase of 1 MMM July 129 call contract at premium = $21
Since it is given that it is held unit the expiration date.
The selling price of MMM stock = $141 per share.
Total number of shares = 100
Total amount paid for share (purchase price) = 129 + 21 = $150
Loss or profit = Market price on expiration date- purchase price
=141-150
= - 9
Total loss = 9 × 100
=900 loss
Answer:
$ 5000
Explanation:
Economic Profit = Revenue - Cost of Material - Opportunity Cost
Economic Profit = 50,000-20,000-25,000
Economic Profit = $5000
Answer:
B. No, because for any bonus offered, the worker will claim to have exerted high effort.
Explanation:
This question required some basic reasoning about how human beings function. We all like to receive things from others, and if they are free (or without cost or effort) the more we like them. And we all believe that good things should happen to us and that we are entitled to receive good things. That is the basic reason why jealousy and envy exist.
Now, back to our case. If the company simply hands out bonuses to everyone regardless of their personal effort, every single worker will be convinced that they really deserve the bonus. Even if the worker didn't even try to do his best or didn't do anything right at all, he/she will be convinced that they deserve the bonus. Each and every single worker will claim that the reason they are receiving the bonus is due to their work. Everyone will say that they worked hard and their work was good.
Imagine this happened at school. One day, the teacher decides to give As to half the class in alphabetical order (or any other random way). The half that got the As will believe that they deserved the As while the other half will be very unhappy. If everyone got As, then everyone will be convinced that thy got As because they deserved them.
Answer:
Given that,
Cost of equipment = $411,000
Accumulated depreciation = $194,000
Dispose accumulated depreciation for cash = $173,000
The Journal entry is as follows:
Cash A/c Dr. $173,000
Accumulated depreciation A/c Dr. $194,000
Loss in Disposal A/c Dr. $44,000
To Equipment a/c $411,000
(To record the accumulated depreciation and dispose off.)
Loss in Disposal:
= Cost of equipment - Accumulated depreciation - Dispose accumulated depreciation
= $411,000 - $173,000 - $194,000
= $44,000
