Answer:
The answers are:
- Professional fees to issue the corporation’s stock
- Commissions paid by the corporation to underwriters for stock issue
- Printing costs to issue the corporation’s stock
Explanation:
Organizational costs are the initial costs incurred when creating a company. They usually include legal and registration fees, promotions, and commissions paid.
After 10/22/2004, organizational cost up to $5,000 can be deducted as an expense. The remaining organizational costs can be amortized over fifteen years.
Answer:
D
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
Answer:
$4,228,125
Explanation:
The computation of the included amount is shown below:
= Estimated production in a next year × required direct labor per hour × labor rate per hour
= 75,000 units × 4.1 hours × $13.75 per hour
= $4,228,125
We simply multiplied the estimated production with the required direct labor per hour and the labor rate per hour so that the estimated value can arrive
Answer and Explanation:
The preparation of the analysis shows whether the assemblies should process further or not is presented below:
Differential revenue (38,000 units × ($51 - $44)) $266,000
Differential costs:
Direct material (38,000units × $2 per unit) ($76,000)
Direct labor (38,000units × $2 per unit) ($76,000)
Variable overhead (38,000units × $1 per unit) ($38,000)
Fixed costs ($160,000 - $225,000) ($65,000)
Additional income (loss) from processing further $11,000
Since the amount comes in positive so it should be processed further
Answer:
D) i and iii
Explanation:
Implicit cost refers to economic costs that are not directly attributed to the business but are nevertheless important in making informed decisions. In this case the opportunity costs are implicit cost. They are:
- Salary forgone which should have been earned at another job, and
- Interest lost from savings account.
