Answer: b.Correctly ignored a sunk cost
Explanation:
Sunk costs are those that are already incurred and should not have any influence on the decision to be made.
The cost of the ticket to the play has already been incurred and could not be sold, exchanged or transferred so was a sunk cost. By going to the concert with Simone, Ravi decided to ignore a sunk cost and he was correct to do so.
Answer:
A. Dr Cash 52,000
Cr Common Stock 10,000
Cr Paid-in Capital in Excess of Par-Common Stock 42,000
B. Dr Cash 52,000
Cr Common Stock 10,000
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
C. Dr Cash 52,000
Cr Common Stock 52,000
D. Dr Organization Expense 52,000
Cr Common Stock10,000
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
E. Dr Land 52,000
Cr Common Stock 10,000
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
Explanation:
Preparation of the entry for the issuance
A. Dr Cash 52,000
Cr Common Stock 10,000
(2,000 x 5 )
Cr Paid-in Capital in Excess of Par-Common Stock 42,000
(52,000 – 10,000)
B. Dr Cash 52,000
Cr Common Stock 10,000
(2,000*5)
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
(52,000 – 10,000)
C. Dr Cash 52,000
Cr Common Stock 52,000
D. Dr Organization Expense 52,000
Cr Common Stock10,000
(2,000*5)
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
(52,000-10,000)
E. Dr Land 52,000
Cr Common Stock 10,000
(2,000*5)
Cr Paid-in Capital in Excess of Stated Value-Common Stock 42,000
(52,000-10,000)
Answer:
Gross earnings = $600
Net pay = $466.10
Explanation:
The computation of the gross earnings and the net pay is shown below:
Gross earnings
40 hours × $10 = $400
10 hours × $20 = $200
So, the total = $600
Since tami worked for 50 hours, 10 hours extra so $20 is paid for 1 hours extra. So, for 10 hours it would be $200
Net pay
Gross earnings $600
less: federal income tax withholding -$88
Less: FICA tax rate @7.65% on $600 - $45.90
Net pay $466.10
Answer:
a Coasian solution to an externality situation.
Explanation:
Basically. a Coasian solution to an externality situation occurs when the economic activities of one party results in a damage or cost to another party or their property. In this situation, the Coase Theorem which recommends two possible settlements may be applied. The first settlement is for the party causing the damage or imposing the cost to choose to give financial compensation to the affected party so that he can continue to impose the cost or cause the damage. The second settlement is for the affected party to pay the party causing the damage or imposing the cost so that he can stop causing the damage or imposing the cost.
From the question, the affected person chose the second possible settlement by offering to pay the passenger in front of him to keep her from reclining her airplane seat. It is therefore an example of a Coasian solution to an externality situation.
