Answer:
When PED is greater than one, demand is elastic. This can be interpreted as consumers being very sensitive to changes in price: a 1% increase in price will lead to a drop in quantity demanded of more than 1%. When PED is less than one, demand is inelastic.
so it is true
Explanation:
Answer: both internally and externally
Explanation: In simple words, financial statements refers to the group of reports and statements that are prepared by an organisation for communication its financial performance and postilion to its internal and external stakeholders.
It constitutes balance sheet, cash flow statement and income statement etc.
Answer:
c. Recognition of assets and liabilities
Explanation:
Determining periodic deferred tax is a consequence of difference of tax as per book profit and profit as per income tax norms.
Thus recognition of deferred tax asset or liability is matching of assets and liabilities, as when we recognize deferred tax asset as in the condition that the tax payable as per income tax is less and as per books is more than deferred tax asset arises.
In this case we recognize the asset, then against that asset recognized is income tax payable, further income tax payable is set off against this asset and income tax expense.
Answer:
depletion of the timber tract = $228,000 and
depreciation of the logging roads = $22,800
Explanation:
Timber tract
Depletion rate = (Cost - Residual Value) ÷ Estimated units
= ($2,950,000 - $670,000) ÷ 5,700,000
= $0.40
Depletion expense = Units used x Depletion rate
= 570,000 x $0.40
= $228,000
Logging Roads
Depreciation rate = (Cost - Residual Value) ÷ Estimated units
= ($228,000 - $0) ÷ 5,700,000
= $0.04
Depreciation expense = Units used x Depreciation rate
= 570,000 x $0.04
= $22,800
