Answer:
A. $5,000 of depreciation expense on its income statement.
Explanation:
Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.
Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.
It does not included fixed cost like depreciation.
As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.
Therefore, the correct option is
A. $5,000 of depreciation expense on its income statement.
When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
Answer:
The intrinsic value = $469.15
Explanation:
<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>
Price = EPS × P/E ratio
It is appropriate to use the industry average price-earning ratio for the purpose of this valuation.
The intrinsic value = 19.75 × $5.50 = $469.15
A. Hindsight bias- also known as the knew-it-all-along phenomenon or creeping determinism, refers to the common tendency for people to perceive events that have already occurred as having been more predictable than they actually were before the events took place.
the price of summer cabins. as summer approaches, the equilibrium price of rental cabins increases, and the equilibrium quantity of cabins rented increases increase in demand.
When the price falls below the equilibrium price, the quantity demanded exceeds the quantity supplied, creating an excess demand (short supply) for the product. In other words, consumers want to buy more than producers are willing to sell. This mismatch between supply and demand drives up prices.
Price movements cause equilibrium movement along the supply curve. Such a movement is called a change in supply. Like changes in demand, changes in supply do not shift the supply curve. By definition, it is moved along the supply curve.
Learn more about equilibrium at
brainly.com/question/517289
#SPJ4
