Answer: The income elasticity of demand most likely to be negative for "B. Used clothing".
Explanation: The income elasticity of demand measures the proportion of the increase in consumption of a product resulting from a proportional change in income. Therefore, if a person has an increase in their income, they will probably buy new (unused) clothing, so the income elasticity of demand is negative.
Answer:
The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.
Explanation:
There are five steps for revenue recognition established by the Financial Accounting Standards Board (<em>FASB</em>) which are: <em>Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations </em>and<em>; Recognizing revenue.</em>
In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.
Answer:
Option (B) is correct.
Explanation:
Total Square foot of space:
= Fabrication + Assembly
= 4,000 + 2,000
= 6,000
Maintenance expense is allocated on the basis of square footage
.
So, maintenance expense allocated to assembly
:
= (Maintenance Operating costs ÷ Total Square foot of space) × Assembly Square foot of space
= ($26,400 ÷ 6,000) × 2,000
= $4.4 × 2,000
= $8,800
Answer:
$5,000
Explanation:
If these are death benefit funds then it must be noted that tax is not applicable on the lump sum amount of death benefit but the interests paid on the amount left on deposit with the insurer is taxable. In simple terms, if dividends are left on deposit to earn interest then this interest is taxable!
Interest rate= 5%
Amount= $100,000
Tax= 0.05x100,000
Tax= $5,000
