Answer: increases the social cost above the private cost
Explanation:
An external cost occurs when the production or consumption of a good or service imposes a cost i.e a negative effect upon a third party who isn't involved in the consumption or production decision.
The increase in the travel time of other drivers on the highway which is caused by Monique's decision is an external cost. If there are external costs in the consumption of a good, it is refered to as negative externalities and the social costs will be higher than the private cost.
Answer:
$340,363.55
Explanation:
you need to calculate the future value of your deposit:
future value = present value x (1 + interest rate)ⁿ
- present value = $12,000
- interest rate = 12% / 365 = 0.032877%
- n = 40 x 365 = 14,600
future value = $12,000 x (1 + 0.032877%)¹⁴⁶⁰⁰ = $1,456,975.20
if the interest is compounded annually, the future value = $12,000 x 1.12⁴⁰ = $1,116,611.65
the difference = $1,456,975.20 - $1,116,611.65 = $340,363.55
Answer:
$21,800
Explanation:
The computation of 4-year revenue is as shown below:-
Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2
= $500,000 × 8% × 1 ÷ 2
= $20,000
Interest Revenue = Bond Income + Amount of Discount Amortized
= $20,000 + $1,800
= $21,800
Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.
Answer:
$170,000
Explanation:
Given that,
Travis Corporation begins the year with $50,000 of tire inventory that means inventories in the beginning of the year.
Purchases of tires during the year = $150,000
At the end of the year,
Purchase cost of remaining inventory = $30,000
Therefore,
Cost of goods sold:
= Beginning inventories + Purchases - Ending inventories
= $50,000 + $150,000 - $30,000
= $200,000 - $30,000
= $170,000
Answer:
Only 35% of the dividend arising from September to December, 2014 would be recognized as revenue in the income statement.
Explanation:
The remainder of the income is not relevant as it was accounted for under the market value method because the share holding was below the associate shareholding. Under the market value method, gain and losses on the increase and decrease of market value of investment are recognized in the comprehensive income statement.
The equity method says that the income from the investment is only recognized if the shareholding is above the shareholding requirement of associate. So from the month the investment was considered as an associate investment which is September, 2014 and onwards, the firm must recognize dividends received from this date as an income in its financial statement.
