Answer:
c) $3,142.00
Explanation:
The recording of the contingent performance obligation should be recorded at $3,142 which should be equal to the fair value of $16,500 at 5% using the probability-weighted approach
Moreover, at the time of payment, the journal entry is
Contingent performance obligation Dr $3,142
Loss from revaluation of contingent performance obligation $13,358
To Cash A/C $16,500
(Being the cash paid is recorded)
This is an example of the Law of Diminishing Marginal Utility. This is when there is a diminishing marginal utility as the consumer consumes one more additional product. Marginal utility means the satisfaction the consumer gets when buying the product.
Question Completion:
see Exhibit 4 attached.
Answer:
1. The largest and smallest divisions by net sales in 2017:
Largest divisions:
Fabric & Home care with 32%
Baby, Feminine & Family Care, 28%
Smallest divisions:
Beauty with 18%
Grooming, 11%
Healthcare, 11%
2. The one most important division in terms of the proportionate net earnings for the company is:
Fabric & Home Care
Explanation:
The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%. In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%. The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division. Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.
Answer:
if you want to maximize the amount of interest that you will earn, then you should choose bank C
Explanation:
interest gained in 1 year in bank A = $5,600 x 4.61% = $258.16
interest gained in 1 year in bank B = $5,600 x [(1 + 4.15%/12)¹² - 1] = $236.87
interest gained in 1 year in bank C = $5,600 x [(1 + 4.57%/2)² - 1] = $258.84
interest gained in 1 year in bank D = $5,600 x [(1 + 4.25%/4)⁴ - 1] = $241.82
we have to calculate the effective interest rate paid by each bank using the following formula:
effective interest = (1 + i/n)ⁿ - 1
