Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
<span>B.financially protect against unexpected accidents definitely the answer.</span>
Answer: 1. D. Economic entity
2. C. Circumstances prevent the exercise of control.
3. B. Consolidation used for both Sell and Vane.
4. B. In form, the companies are separate; in substance, they are one entity
Explanation:
1. When a parent–subsidiary relationship exists, it can be infered that consolidated financial statements will be prepared in recognition of the accounting concept of economic entity.
2. Consolidated financial statements are prepared when one company has a controlling interest in another unless the circumstances prevent the exercise of control.
3. Based on the information given, in Penn’s consolidated financial statements, it should be noted that Sell and Vane should be consolidated. Therefore, the correct option is B.
4. The best theoretical justification for consolidated financial statements is that in form, the companies are separate while in substance, they are regarded as one entity.
Answer:
the total manufacturing cost is $39,150
Explanation:
The computation of the total manufacturing cost assigned as follows:
Overhead costs is
= 115% of $10,100
= $11,615
Now the total manufacturing cost is
= Direct materials cost + Direct labor costs + Overhead costs
= $17,435 + $10,100 + $11,615
= $39,150
Hence, the total manufacturing cost is $39,150
