Answer:
Option (c) is correct.
Explanation:
Depreciable value of machine:
= Cost of machine - salvage value
= $87,000 - $7,000
= $80,000
Depreciation of second year:
= ($80,000 ÷ 400,000) × 84500
= $16,900
Therefore, the journal entry is as follows:
Depreciation Expenses A/c Dr. $16,900
To accumulated depreciation $16,900
(To record the machines' second year depreciation)
Answer:
The amount of effective interest expense that chaco will record in the first six months is $14,375
Explanation:
interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.
The interest expense is calculated by these formula
Interest expense = Effective semiannual interest rate × Outstanding balance
Interest expense = (8% ÷ 2) × $359,378 = $14,375
So the interest expense is gotten as %14,375
Answer:
principal-agent problem
Explanation:
In a corporation, the principal-agent problem refers to conflict of priorities that exist between the shareholders and the management. Management has the duty of increasing the corporation value, and therefore increasing the shareholders' wealth. But sometimes, management makes decisions that benefit them more than the shareholders. This conflict of interest can be really dangerous for a corporation, since managers may safeguard their own personal interests and sacrifice the corporation's future value.
Answer:
Total Cost is the cost that is fixed and does not vary directly with the level of output. According to this question typesetting, printing, editing, reviews, promotion, and advertising are fixed costs. The total fixed cost here is $100000.
Total Variable Cost is the costs that vary directly with the level of output. Variable costs are incurred on variable factors. The Total Variable Cost here is $49000.
Marginal cost is addition to the total cost when one more unit of output is produced.
<u>EQUATIONS
</u>
TC = 100000 + 4.9Q
ATC = 100000 + 4.9Q / Q
AVQ = 4.9Q / Q
MC = Change in Total Cost / Change in Quantity = 4.9
<u>GRAPH</u>
Is attached as picture.
Conclusion: The AVC and MC both are equal to 4.9.
Answer:
b. providing a subsidy to correct for an underallocation of resources.
Explanation:
When the external benefit of an activity exceeds cost, the activity generates postive externality.
Activities that generate positive externality are usually under produced usually because of the high cost of production . Government can encourage production of activities that generate positive externality by giving subsidy which reduces the cost of production and increases production.
I hope my answer helps you
