Answer:
Explanation:
negative externality (NE)
positive externality (PE)
a. Overallocation of resources: NE
b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block. PE
c. Market demand curves are too far to the left (too low). NE
d. Under allocation of resources. PE
e. Water pollution from factory forces neighbors to buy water purifiers. NE
Answer: B. ($11 million)
Explanation:
Out of the listed transactions there, these are the ones that can be taken out of Retained Earnings.
Loss on sale of equipment of $6 million
Preferred dividend of $2 million
Common dividend of $3 million
So calculating would be,
= - 6 - 2 - 3
= -$11 million
This means that Retained Earnings will reduce by -$11 million making option B correct.
Answer:
cost of goods manufactured= $490,000
Explanation:
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 20,000 + 120,000 + 190,000 + 170,000 - 10,000
cost of goods manufactured= $490,000
Answer:
-The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
-The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement.
-The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.
Explanation:
The mode of reporting in an operating lease is slightly different from that in a finance lease. For example, the lessor can use a straight-line form of reporting he revenue while the lessee can use a straight-line form of reporting the expense for the given term of the lease. The lessee and lessor usually report expense and revenue respectively.
