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3 years ago

In a contingent contract

Business

1 answer:

Korvikt [17]3 years ago

7 0

Answer:

C. the payoffs are dependent upon another variable, such as revenue or profit.

Explanation:

Contingent contracts are one of the types of contracts in which the promisor offers the responsibility only when the distinct conditions are satisfied. It works on the occurrence or non-occurance of the specific event. It relies on the happening of an unpredictable event. The contingent contract becomes void in the case when the happening of the event grows impossible.

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Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has

Anni [7]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

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2 years ago

What is the difference between explicit collusion and implicit collusion? Unlike explicit collusion, implicit collusion

lesya [120]

Answer:

The basic difference between both are explained below.

Explanation:

Explicit collusion is where firms meet and agree to charge the same price, and an example of implicit collusion is price leadership. Unlike explicit collusion, implicit collusion unlike explicit collusion, implicit collusion is where firms signal to each other without actually meeting and agreeing to charge the same price.

Unlike explicit collusion, wherever the occurrence of an accommodation that would lend ammunition for an antitrust court case might be unscrewed, implied collusion is challenging to document as well as to verify. Implicit collusion frequently seems to be nothing more than all firms individually responding to shifting market circumstances.

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3 years ago

Money facilitates trade because: Group of answer choices it serves as a medium of exchange. it eliminates the need for specializ

gogolik [260]

Answer:

It serves as a medium of exchange.

Explanation:

It serves as a medium of exchange is the correct answer because in the trade money plays an important role and it makes the trading very easy as compared to barter system where a person has to find the other person who is in the need of same commodity through which the other person wants to exchange. Moreover, the use of money as a medium of exchange eliminated all the problems that were in the barter system.

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2 years ago

Which of the following is the last step in creating a budget?

Step2247 [10]

B. Determine savings or debt :)

6 0

3 years ago

Read 2 more answers

Excey Corp. has 10 percent coupon bonds making annual payments with a YTM of 9.5 percent. The current yield on these bonds is 9.

shtirl [24]

Answer:

The number of years would be 4 years to maturity

Explanation:

Let the Face value (FV) be $1,000

So, the PMT will be 10% of Fv

PMT = 10% × $1,000

PMT =$100

Computing the Present Value (PV) of the bond as:

PV = PMT / Current Yield

where

PMT is payment monthly, which the 10% of coupon bond, that is $10

Current Yield will be 9.85% or 0.0985

Putting the values above:

PV = $100/ 0.0985

PV = $1,015.22

Now, computing the number of years using the Excel formula , which is as:

=Nper(rate,pmt,pv,fv,type)

where

Nper is number of years

rate is 9.5%

pmt is $100

pv is -$1,015.22

fv is $1,000

Putting the values above:

=Nper(9.5%,100,-1015.22,1000,0)

= 3.76 or 4 years

5 0

3 years ago