Answer:
a. Capitalized : Equipment
b. Expensed
c. Capitalized : Building
d. Expensed
e. Capitalized : Equipment
f. Capitalized : Building
g. Capitalized : Building
h. Capitalized : Equipment
Explanation:
The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.
The costs exclude amounts collected in tax on behalf of third parties
Also not Capital expenditures increase the earning ability of the asset whilst revenue expenditure is the maintenance of such asset.
Answer:
a) Gold = $1,380; Silver = $1,020
b) Gold = $1,300; Silver = $980
Explanation:
a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:
Equilibrium price of gold is $1,380 and the price of silver is $1,020.
b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:
Equilibrium price of gold is $1,300 and the price of silver is $980.
Answer:
B. 16.53%
Explanation:
The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.
the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1
r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%
Answer:
B) opportunity costs.
Explanation:
Opportunity cost is the fortified benefits when a choice is made. It is the sacrificed option from a variety of possible choices. The value of opportunity cost is expressed as the cost of the next best alternative.
According to the economist, Joe made a loss because his opportunity cost would have yielded a better return. In evaluating the viability of a project, economists always consider the returns from the next best alternative. Joe would have made a profit if the returns from the sales of gold were higher than the 3 percent from a certificate of deposit. Because Joe opted for the gold, he missed the chance to earn from the certificate of deposit. In economics, he made a loss.
