Answer:
D. $30,000 overstated
Explanation:
Understatement of ending Inventory overstate the value of cost of Goods sold and understate the value of Net income and retained earning as well.
Overstatement of ending Inventory understate the value of cost of Goods sold and overstate the value of Net income and retained earning as well.
In 2016 the net income and retained earning was understated by $120,000.
In 2017 the net income and retained earning was overstated by $150,000.
Net Effect of both event in Retained earning at January 1, 2018
$150,000 overstated - $120,000 understated = $30,000 overstated
Answer:
1,000 long term capital gain
Explanation:
Economic capital is productive, so it does not include Money.Economic capital is the amount of risk capital held by a financial services company to enable it to survive any difficulties such as market or credit risks. Money is used to purchase various factors such as raw materials, machinery, labor which help in the production of goods, but money itself does not directly help in the production of goods. The real capital consists of machinery, buildings, tools, factories, tractors, etc, which directly assist in the production of goods
Answer:
D) An illusory promise
Explanation:
An illusory promise is not enforceable. Illusory promises are simply illusions that seem or appear to a contract, but are not.
In this case, there is no consideration at all, therefore none of the parties is bound by a contract. It would be different if the company promised to pay a bonus if its profits are xx%. How can someone determine what is considered high profits, and how can you be sure that management will agree?
It is basically like telling someone else that you will give them something if you are happy and willing to do it. How can someone determine if you are happy or not, and how can someone know if you are willing to do it or not?
