Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
Answer:
C. Both (i) and (ii) are true
Explanation:
Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.
Under perfect competition, both supplier and consumer surplus exist.
Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.
Answer:
B. Gain $8,000
Explanation:
The calculation of exchange translation is shown below:-
Old exchange rate = Net exposed assets × Value of Euro
= 200,000 × $1.22
= $244,000
New value in euro = Net exposed assets × Increased exchange rate
= 200,000 × $1.26
= $252,000
Translation Profit = New value in euro - Old exchange rate
= $252,000 - $244,000
= $8,000
Answer:
B) systematic risk
Explanation:
Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.
Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.
Answer:
inventory 50,000 debit
accounts payable 50,000 credit
--to record purchase of goods--
accounts payable 50,000 debit
notes payables 50,000 credit
--to record teh issued promissory note to setle the account--
cash 50,000 debit
discount on note payable 4,000 debit
notes payable 54,000 credit
--to record the discounted note--
Explanation:
a) we record the purchase as always.
b) we are trading a liability for another. We do not receive for the note.
c) we discount on the note and we are goind to declare the interest expense at maturity or year-end against this discount.
