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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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Perez Corporation’s computer services department assists two operating departments in using the company’s information system eff
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Answer:

Production department $440,000

Sales department $143,000

Explanation:

The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.

Hence,

Cost allocated to the production department

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Cost allocated to the sales department

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3 years ago
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Answer: The Answer is HMO

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Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to l
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Answer:

modified product - multiple markets

Explanation:

This type of strategy consists of offering different products, which are modified versions of some exiting product, to new markets.

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3 years ago
Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cas
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Answer:

a) Debit Depreciation expense  $14,000

   Credit Accumulated depreciation  $14,000

Being entries to record depreciation expense for 2016

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   Credit Accumulated depreciation  $26,666.67

Being entries to record depreciation expense for 2017

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Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

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At the beginning of 2017,

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= $150,000 - 2($14,000)

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3 years ago
Aurora, a self-employed taxpayer, reports all her income on Schedule C. During the tax interview, Aurora's Tax Professional dete
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Answer:

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