Answer:
Explanation:
The journal entry is shown below:
1. Accounts receivable A/c Dr $160
To Sales discounts forfeited $160
(Being sales discount is recorded)
The computation of the sales discount is shown below:
= (Sales value - payment made) × discount rate
= ($40,000 - $24,000) × 1%
= $160
2. Cash A/c Dr $16,000
To Accounts receivable A/c $16,000
(Being cash is received)
Answer:Directly related to the list price of the good
Explanation:
Answer:
US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.
Explanation:
Absolute Advantage is when a country can produce more output per input of a commodity, than other country.
Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)
China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.
However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.
Answer:
$ 52
Explanation:
Given data:
Price of the stock = $ 50
Commission per share = $ 2
Dividends received = $ 2
Now,
the dividends received is not the part of the stock's cost basis, but it is included in the taxable income for the year.
Therefore,
The customer's cost basis in the stock
= Price of the stock + commission per share
or
= $ 50 + $ 2
or
customer's cost basis in the stock = $ 52
Answer:
Di = dividend in year i
D0 = D1 = D2 = 0
D3 = 2
D4 = D3 * (1+24%) = 2.48
D5 = D4 * (1+24%) = 3.0752
D6 = D5 * (1+7%) = 3.290464
require return r = 14%
g = 7% in the long run
So stock price in year 5 = D6/(r-g) = 3.290464/(14%-7%) = 47.0066
Current price = Present value of dividends and stock
= D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 + D4/(1+r)^4 + D5/(1+r)^5 + Price in year 5/(1+r)^5
= 0 + 0 + 2/(1+14%)^3 + 2.48/(1+14%)^4 + 3.0752/(1+14%)^5 + 47.0066/(1+14%)^5
= 28.829219
= 28.83 (rounded to 2 decimals)
Explanation:
