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AVprozaik [17]
3 years ago
15

When a business must decide between completing a project that is over budget and past due versus starting over, they are evaluat

ing what?
Business
1 answer:
WINSTONCH [101]3 years ago
6 0

Answer: Sunk cost effect.

Explanation:

The business would consider the sunk cost in the already existing project. The sunk cost effect explains that individuals would have a stronger desire to complete a project that so much resources has entered into, than starting over.

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The solution to the following problem is done below.

Explanation:

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Account Title                                                                          Dr            Cr

Kala, Capital                                                                         20,000

Adam, Capital                                                                                       20,000

Cash                                                                                      10,000

Kala, Capital                                                                                           8,000

Leah, Capital                                                                         6,000

Adam, Capital                                                                                        24,000

b) Immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.

Account Title                                                                          Dr            Cr

Leah, Capital                                                                        13,500

Denton, Capital                                                                                    13,500

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