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3 years ago

What happens in a free and open market?

1 answer:

6 0

Answer:In fact in today's world there is no “true Free Market” in existence. ... The Open Market is a Market in which prices are determined by the forces of supply and demand, without government regulations or restrictions. It is “open to all Producers on equal terms” and restricted to the participation of Producers only

Explanation:In fact in today's world there is no “true Free Market” in existence. ... The Open Market is a Market in which prices are determined by the forces of supply and demand, without government regulations or restrictions. It is “open to all Producers on equal terms” and restricted to the participation of Producers only

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Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl

Aleksandr-060686 [28]

Answer and Explanation:

a. The computation of operating profit is shown below:-

Profit per unit = Purchase price from outside per unit + variable cost of production internally

= $15 - $7

= $8

Total increment in operating profit = Profit per unit × Total number of units

= $8 × 24,000

= $192,000

b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)

c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit

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4 years ago

An office building owned by Milo was destroyed by Hurricane Mel on September 25, Year 4. On October 2, Year 4, the President of

Anon25 [30]

Answer:

December 31, year 9

Explanation:

Here, we want to state that date that is possible for Milo to acquire qualified replacement property.

In order to avoid being taxed on a gain resulting from an involuntary conversion, the property subject to the conversion must be replaced within a specified time, measured from the end of the calendar year in which the proceeds are received.

Generally, the period is 2 years, but it is 3 years when the involuntary conversion results from government condemnation or eminent domain and is extended to 4 years when the loss is in connection with a declared federal disaster area.

We are told from the question that Milo received the recovery on January 2, Year 5, the property would have to be replaced within 4 years from the end of Year 5 or by December 31, Year 9

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3 years ago

When you are ready to commit to a topic, the first strategy is to____________.

adelina 88 [10]

Answer: c. identify an area of knowledge or an issue that deeply interests you. conduct a thorough, objective research.

Explanation:

You would write better on any subject where you have an area of knowledge or that which interests you greatly, this is due to the fact that your knowledge gives you an added advantage in writing the subject, you would have had an underlying foundational knowledge which you just need to build on by research and having an objective for the topic. So, having an interest and knowledge in a topic is the first strategy to note when writing a topic.

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3 years ago

Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business

lyudmila [28]

Answer:

A corporation had the following assets and liabilities at the beginning and end of this year.

Assets Liabilities

Beginning of the year $ 76,500 $ 32,796

End of the year 132,000 53,460

Details a b c d

1 Beginning of the year Equity 43,704 43,704 43,704 43,704

2 Owner's investment (+) - - 45,000 35,000

3 Dividends (-) - 10,200 - 10,200

4 Net income / loss (+) 34836 45,036 -10164 10,036

5 End of the year Equity 78540 78540 78540 78540

Explanation:

Equity = Assets - Liability

Beginning of the year = 76500 - 32796 = $43,704

End of the year = 132000 - 53460 = 78540

Net income = End of year equity - (Beginning of the year Equity + Owner's Investment - Dividends)

a) Net income = 5 - (1 + 2 - 3)

= 78540 - (43704 + 0 - 0)

= 34,836

b) Dividend of 850 per month = 850 * 12 = 10,200

Net income = 5 - (1 + 2 - 3)

= 78540 - (43704 + 0 - 10200)

= 45,036

c) Net Income = 5 - (1 + 2 - 3)

= 78540 - (43704 + 45000 - 0)

= -10,164

d) Dividend of 850 per month = 850 * 12 = 10,200

Net Income = 5 - (1 + 2 - 3)

= 78540 - (43704 + 35000 - 10200)

= 10,036

Owner's investment increases equity

Dividends reduce equity

Net Income increases equity

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3 years ago

In the life cycle theory of consumption, the motive to save is:A.To be able to open a business.B.To become wealthy.C.To leave a

DanielleElmas [232]

Answer: To afford to retire

Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.

As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.

However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.

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3 years ago