Answer:
Alice should exercise the option and pay $100,000 for the land.
Explanation:
As Alice has paid $20,000 for the option to acquire the land of ten acres.
In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.
Answer:
The correct answer is: c. toward which the economy gravitates in the short-run.
Explanation:
In the economic context, the Short Term is a period in which an economy does not have enough time to change its fixed expenses in order to reach new levels of profitability or production, so it must be limited to changes in variable costs. It is worth mentioning that the Short Term is not a defined period of time, but depends on each company, industry or economic variable.
One of the most important bases of the meaning of Short Term is that companies have fixed and variable costs. For example, some common expenses, wages and prices are fixed costs, so they cannot change to freedom to reach a new equilibrium.
The behavior or disposition displayed by Brenda that was described above shows consideration behavior, therefore, Brenda can be said to be: <u>expressing consideration behavior.</u>
Consideration behavior can be described as exhibiting a friendly and supportive disposition by<em> considering the interests of others</em>. It also entails effectively communicating openly with others, having respect of their ideas and <em>showing concern for their feelings.</em>
Thus, the behavior or disposition displayed by Brenda that was described above shows consideration behavior, therefore, Brenda can be said to be: <u>expressing consideration behavior.</u>
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Answer:
The entry will be:
May 3
Dr Allowances for doubtful debt 3,700
Cr Account Receivable 3,700
(to record written-off of receivables)
Explanation:
As the company uses the allowance method of accounting for uncollectible accounts, the company would actively review and book bad debt expenses for any debt in doubt of collection. The entry would be: Dr Bad Debt Expenses & Cr Allowance for doubtful debt.
When there is sufficient evidences that these debts go default, no more expenses will be recorded, instead, the account receivable will be written off ( Cr) with the offsetting entry is Dr Allowance for doubtful debt.
It should be noted that a benefit of contributing to a retirement account is A. The amount of income that's taxable is reduced.
<h3>What is the benefit of retirement account?</h3>
It should be noted that employee contribution can help in reducing taxable income.
Contributions and investment gains won't be taxed until they're distributed.
Therefore, the benefit of contributing to a retirement account is the amount of income that's taxable is reduced.
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