If a company complies with government regulations, it incurs implementation costs. When a company decides to agree and follow new regulations, it will have to implement them into their organization. By implementing them, they are making changes within their organizations processes and therefor having costs associated with the changes.
Answer:
a). $12,850 b.) 550
Explanation:
a). Shareholder equity
The shareholder equity consists of the shareholder capital contributions plus the retained earnings. calculating the shareholder's equity is through the formula shareholder equity = total assets -total liabilities
In this case,
Total assets = $5,000,+ $23,300= $28,300
Total liabilities = $4,450 + $11,000 + $15,450
Shareholder equity = $28,300 -$15,450 = $12,850
b). Net working capital
Net working capital is the difference between current assets and current liabilities. i.e., net working capital is current assets - current liabilities
current asset = $5000
Current liabilities = $ 4,450
Net working capital; = $5,000 - $4,450= $550
Answer:
Style modification
Explanation:
Style modification is a form of product differentiation used to influence the way a product appeal to a customer by altering its taste , color , texture , sound and smell.
It is adopted in order to get a unique position in the market in order to gain a competitive advantage and a large market share.
The production of the back pack in new variety of color is a typical example of style modification
Answer:
A stock market crash will cause aggregate demand to decrease, which the Fed could offset by purchasing bonds.
Explanation:
A stock market crash happens when the prices of stocks fall generally and suddenly that investors are taken unawares. It triggers some reactions which further threatens the market overall and depresses aggregate demand. It also weakens investors' confidence, reduces productivity, consumption, and the ability of firms to fund their activities, and leads the economy to recession.
Stock market crashes are triggered by unexpected economic event, catastrophe, or crisis. For example, the collapse of Lehman brothers as a result of bankruptcy. They are further exacerbated by panic reactions, underlying economic underperformance, and investors' fear.
The Fed as the US central bank in charge of the monetary policy can try to stem the downward spiral caused by a stock market crash by purchasing bonds. This makes more money available in the economy for consumption.
Before the crash, the Fed can decide to bail out the institution, e.g. an airline or a financial institution, that could trigger a crash. But, most stock market crashes are not foreseen.
Answer:
$50,400
Explanation:
Calculation to determine the amount of the deduction for the current year
First step is calculate the Research and experimental costs
Salary $250,000
Materials $90,000
Utilities $20,000
Depreciation $18,000
Research and experimental costs $378,000
($250,000+$90,000+$20,000+$18,000)
Now let determine the amount of the deduction for the current year
Current year deduction = $378,000/60 * 8
(Note that May-December will give us 8 months)
Current year deduction = $50,400
Therefore the amount of the deduction for the current year is $50,400
