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il63 [147K]
3 years ago
7

Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Kor

ie currently has $500,000 in the bank earning 3 percent interest per year. Refer to Scenario 13-1. Suppose Korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. What is Korie's annual opportunity cost of purchasing the factory?
A. $18,000
B. $6,000
C. $3,000
Business
1 answer:
viktelen [127]3 years ago
4 0
The answer is C.$3,000
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Roger is currently in the hospital, having been diagnosed with terminal cancer. Roger would like Kim, a close friend, to make an
Kisachek [45]

Answer:

The correct answer is letter "E": a durable power of attorney.

Explanation:

A power of attorney is a document stating another party is legally right to act on an individual's behalf. As soon as the individual is capable to handle business, the power of attorney loses validity.  

A durable power of attorney, instead, is used when the individual delegating power to another party has knowledge of being impaired soon and possibly is not going to recover. Thus, the durable power of attorney will be valid since the individual cannot handle business until the moment of his or her decease. During that time, the selected party is right to make health and finance decisions on behalf of the individual.

5 0
3 years ago
Cavan Company prepared the following reconciliation between book income and taxable income for the current year ended December 3
nadezda [96]

Answer:

b. $80,000

Explanation:

The computation of the deferred portion of its provision for income taxes should be given below:

= $300,000 ÷ 3  years

= $100,000

Now

= 30% of $100,000 + 25% of $100,000 + 25% of $100,000

= $30,000 + $25,000 + $25,000

= $80,000

Therefore the option b is correct

5 0
2 years ago
Landhill Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2020, Sandhill took part in the f
spayn [35]

Answer: Please see answer in explanation column

Explanation:

1. Journal to record common stock issued

Account title                                             Debit               Credit

  Cash                                                 $210,400

Common stock                                                           $22,500

Paid in capital in excess of par                                  $187,900

common stock

Calculation:

Cash = 4,500 x $45 + $7900= $210,400

Common stock =4,500 x $5=$22,500

Paid in capital in excess of par common stock = Cash - Common stock =$210,400-$22,500=$187,900

 

2) To reccord Land purchased in exchange of common stock

Account title                                             Debit               Credit

  Land                                                     $50,600

Common stock                                                             $ 5,500

Paid in capital in excess of par                                     $45,100

common stock

Calculation:

Land= 1,100 x $46 = $50,600

Common stock =1,100 x $5=$5,500

Paid in capital in excess of par common stock = 1100 x (46-5)$41=45,100

3) To record purchase of treasury stock

Account title                                             Debit               Credit

  Treasury stock                                  $19,270                  

   Cash                                                                              $19,270

Calculation:

Treasury stock       =  470 shares x$41= $19,270

8 0
3 years ago
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 68,000 −$ 68,00
den301095 [7]

Answer:

IRR for A= 35.33%

IRR for B = 31.88%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a finacial calculator :

IRR for cash flow A

Cash flow in year 0 = −$ 68,000

Cash flow in year 1 = $44,000

Cash flow in year 2 = $38,000

Cash flow in year 3 = $25,000

Cash flow in year 4 = $15,600

IRR = 35.33%

IRR for cash flow A

Cash flow in year 0 = −$ 68,000

Cash flow in year 1 = $30,200

Cash flow in year 2 =  34,200

Cash flow in year 3 = $40,000

Cash flow in year 4 = $24,200

IRR = 31.88%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

7 0
3 years ago
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Katyanochek1 [597]

Answer:

Bait-and-switch advertising.

Explanation:

BAIT AND SWITCH ADVERTISING is a type of advertising where a seller of a products or goods deceive a prospective buyer by advertising a product that is desirable in which when the buyer make an effort to purchase the product or ask to see the advertised product the seller will show the prospective buyer available product instead of the advertised product in which the buyer will then find out that the advertised product is unavailable just as in the case of John who advertised a desirable property that was already sold out a months ago in order to attract prospective buyers in which when the advertised product was ask by the buyers he shows the buyer available properties instead which means that this act by Broker John is an example of BAIT AND SWITCH ADVERTISING.

8 0
2 years ago
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