Answer:
Loss= $7,500
Explanation:
<u>First, we need to calculate the book value of the equipment:</u>
<u></u>
Book value= purchase price - accumulated depreciation
Book value= 79,000 - 39,500
Book value= $39,500
<u>If the selling price is higher than the book value, the company made a profit by selling the equipment. </u>
<u></u>
Gain/loss= selling price - book value
Gain/loss= 32,000 - 39,500
Loss= $7,500
Answer and Explanation:
The answer is attached below
Answer:
The correct answer is FALSE.
- First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
- Second, high growth stock are also
- high risk
- they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.
Although they are high risk, they also have great advantages such as:
- High growth rate: this means if all goes well David will enjoy a good return on his investment;
- It's also a way to protect his money from erosion by inflation
What can David do?
Subject to the advise of a professional investment professional
- David needs to take into consideration his immediate needs, set aside some funds to take care of that.
- Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
- Start a small business by the side or get a job in the interim as he continues with his new life.
Cheers!
Answer: Efficiency.
Explanation:
An economy is said to be efficient if the economy is able to make the best use of the available resources found in that economy, in meeting the needs of consumers within the economy and even exporting to consumers found in other economies.