Use the adjusted trial balance for Stockton Company to answer the question that follows.

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on t

katrin [286]

Answer:

B

Explanation:

Opportunity cost refers to the benefit of something forgone in choosing an alternative.

the opportunity cost of 50 cars equals one airplane

the pairs of points that could be on the United States; production possibilities frontier is 200 airplanes , 12500 cars and 150 airplanes, 15 000 cars.

since 50 airplanes reduction = 50 × 50 cars increment = 2500 cars

3 0

4 years ago

Read 2 more answers

When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefi

Lena [83]

Answer:

A) anchoring bias

Explanation:

Anchoring bias refers to a common mistake of relying heavily on the first information that we get, or in this case, the first information that we look for.

We all tend to suffer from anchoring bias, that is why it is one of the oldest sales techniques. Everyone has seen an ad that states a before price and a discount price. If the difference between the before price and the after price are significant, then we will consider that it is a bargain. Or a salesperson first shows us an expensive product, and then shows us a similar but lower priced product, we tend to believe the second product is cheap.

When most of us look for a job, of course we focus on the salary, since we want to work to earn money. But only focusing on the salary is seeing only half the picture, although the most important half. Other associated benefits or costs are usually not considered, e.g. a high paying job might also require dressing formally or spending a lot of time travelling.

3 0

4 years ago

A 65-year old retired teacher living on a pension has $200,000 invested in 2 year certificates of deposit that are yielding 4%.

laiz [17]

Answer:

The BEST recommendation would be:

C. Equity REITs

Explanation:

Equity REITs are Real Estate Investment Trusts that allow investors to purchase real estate without necessarily going out and buying the property themselves. They act as middlemen between the investors and the property sellers. The equity REITs invest and own property. The REITs in this way act as a type of security where the property can be traded in the market exchange like stocks and bonds. In this way, investments from large and small investors can purchase a piece of the real estate depending on the amount invested. The investors then own what is called, a share of the real estate.

To be a REIT, one needs to meet certain standards and regulations, for example; the REIT has to have more than 100 shareholders, the REIT has to be managed by a board of directors and the dividend payments have to be at least 90 percent of the REIT's taxable income per year. Equity REIT typically invest in the real estate sector like; industrial estates, residential estates and resorts. The y gain revenue from the rental income from the real estate holdings. This option would be best for the retired teacher since Equity REITs pay high dividends and the risk level is moderate since the real estate investments is diverse.

High yield corporate bonds have a higher return but the risk level is also considerable high. Treasury strips have low returns even though the risk is also very low. Income bonds have a high return only if the investor also has a high net income.

3 0

3 years ago

You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. what is the internal

-Dominant- [34]

The internal rate of return is

6%

3 0

3 years ago

Diane's Designs has two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transact

Bezzdna [24]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $3,000,000 (200,000 × $15)

To Common stock $200,000 (200,000 × $1)

To Paid in capital in excess of par - Common stock $2,800,000

(Being issuance of common stock is recorded)

Here we debited the cash as it increased the current assets and we credited the common stock and paid in capital in excess of par - common stock as it also increased the stockholder equity

2. Cash Dr, 11,700 (900 × $13)

To Preferred stock $10,000 (900 × $10)

To Paid in capital in excess of par - Preferred stock $1,700

(Being issuance of the preferred stock is recorded)

Here we debited the cash as it increased the current assets and we credited the preferred stock and paid in capital in excess of par - Preferred stock as it also increased the stockholder equity

3. Treasury stock Dr, $168,000 (12,000 × $14)

To Cash $168,000

(Being cash paid is recorded)

Here we debited the treasury stock as it increased the treasury stock and we credited the cash as it reduced the current assets

4. Cash Dr, 120,000 (5,000 × $24)

To Treasury stock $70,000 (5,000 × $14)

To Paid in capital in excess of par - Treasury stock $50,000

(Being issuance of the treasury stock is recorded)

Here we debited the cash as it increased the current assets and we credited the treasury stock and paid in capital in excess of par - Treasury stock as it reduced the treasury stock

6 0

3 years ago