Answer:
the opportunity cost of the land purchase is $34,050
Explanation:
The computation of the opportunity cost of the land purchase is shown below;
= Cash outlay × return percentage
= $227,000 × 15%
= $34,050
Hence the opportunity cost of the land purchase is $34,050
We simply multiplied the cash outlay with the return percentage so the same would be calculated
Answer: The internal auditor discovered it when performing a routine audit of expense reimbursements
Explanation:
Marcus Lane, was a geologist who travelled all over North America and South America and this results in several expense reimbursements. Lane engaged in fraudulent activity by double booking his air travel.
He used cheaper ticket for the actual flight and more expensive ticket was returned for credit. But, he submitted the expensive ticket for reimbursement.
The fraud was discovered by the internal auditor while doing a routine audit of expense reimbursements. He was terminated and he agreed to pay the money back.
Answer: a deduction from net income of $1,500,000.
Explanation:
Based on the statements provided in the question, it should be noted that Jim Shorts Corporation should report a deduction from net income of $1,500,000 on the statement of cash flows prepared by the indirect method.
It should be noted that the caah flow statement would start the accrual basis of the net income under an indirect method of the cash flow and then, all the non-cash items would either be added or subtracted in order for the reconciliation of account.
In such circumstances, I would have changed my consumption. I'd have stopped at the 3rd hot dog because consuming something beyond that would decrease my marginal utility, from 20 to 15. It's better to shop at the third hot dog.
Answer:
B. $20.00
Explanation:
To calculate the intrinsic value of a paying dividends stock we use the Gordon Growth Model. PV = D1 / (k +g). In this case, the dividend is not going to experience any growth (g) therefore g=0 And D1 =D0 Which equals 1.8. K is the expected rate of return which is calculated adding the risk premium and risk- free rate. K=5% + 4%=9%.
PV = 1.8 / 0.09
PV = 20.00