Answer:
$405,000
Explanation:
The calculation of total amount is shown below:-
If the company disposes of the equipment to buy the new equipment, the sunk cost will be the old equipment's book value.
Sunk cost = Book value of the old Equipment
Sunk cost = Cost of equipment - Accumulated Depreciation
= $550,000 - $145,000
= $405,000
Therefore for computing the sunk cost we simply deduct the accumulated Depreciation from cost of equipment
Answer and Explanation:
The computation of the percentage of change is as follows;
a. For 2020 to 2021
= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)
= ($473,000 - $503,000) ÷ ($503,000)
= -5.96% decrease
b .For 2021 to 2022
= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)
= ($521,000 - $473,000) ÷ ($473,000)
= 10.15% increase
In this way it is calculated
Answer:
Money as a medium of exchange is more preferable because of its less cumbersome nature.
Explanation:
Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.
Money is easily stored compared to a barter system.
Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.
Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.
