Answer:
$15
Explanation:
Consumer surplus is the price the consumer pay for good/service minus the amount the consumer is willing to pay for it.
✓Mr. and Dr. Brown would be willing to pay $31
✓Mr. Smith would be willing to pay $28
✓Professor Jones and Mr. Jones would be willing to pay $22
Elizabeth PRICE for babysitting each set of children for an evening = $22
Consumer surplus= Σ (price that the consumer is willing to pay- Price of the good/service is sold)
= [(31-22)+(28-22)+(22-22)]
= 9+6+0
=$15
Hence, Consumer surplus is $15
<u>Answer: </u>a credit to a liability
<u>Explanation:</u>
Credit to liability is recorded when a firm knows that it will loose in its case and it has to pay compensation for the law suit. The payment for the law suit is a liability to the firm.
Titan company's attorney has mentioned that the company would probably lose in the law suit and would have to pay an amount of $200,000. This amount will recorded as the credit to liability in the books of Titan Company.
Answer:
$20 million
Explanation:
The net of accumulated depreciation is the cost of the road minus accumulated depreciation till date.
Accumulated depreciation=yearly depreciation* 20 years
yearly depreciation=cost/useful life
cost is $30 million
useful life is 60 years
yearly depreciation=$30 million/60 years=$500,000 per yer
accumulated depreciation=$500,000*20=$10 millon
net of accumulated depreciation=$30 million-$10 million
net of accumulated depreciation=$20 million
As a result,option A is the correct answer
Answer:
A credit entry of $96,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Given that Past experience indicates that the allowance should be 10% of the balance in receivables
Allowance = 10% * $600,000
= $60,000
Amount written off of $90,000 would have made the balance in the allowance for doubtful debts to
= $90,000 - $54,000
= $36,000 (Debit)
However, the balance in the account at the end of the year should amount to $60,000 hence the adjustments required
= $60,000 + $36,000
= $96,000 (credit)
