Answer:
$29,100
Explanation:
The cost of an asset which needs to be capitalised is the sum of all costs needed to make the asset usable, it includes purchase price, taxes, installation costs etc.
According to given question following balances will be capitalised in the MACHINE account.
Price $28,000
Title fee $125
Taxes $500
Delivery charges <u>$475 </u>
Total cost <u>$29,100</u>
Answer:
1. Her return on investment is 20%
2. $40,000
Explanation:
1. We have Return on Investment = Net income from the Investment / The invested amount.
The net income is clearly stated in the Question which is the after-tax profit at $20,000.
The invested amount of Amelia is the amount she invested in Goodies Gift Shop which is illustrated as net worth ( owner's equity) at $100,000 in the Balance Sheet (Year 2).
As we have Return on Investment = 20,000/100,000 = 20%
2. We have the projected pre-tax profit = Projected margin - total overhead = 250K - 200K = $50,000
The after-tax profit = pre-tax profit x (1- tax rate) = 50K x (1-20%) = $40,000
Answer:
b. minimum prices are enforced
Explanation:
The manufacturer of certain products deals with their distributors by exploiting the market failures to negotiate ceiling and minimum prices with the threat of not purchase if the agreement is not validated.
This is done to prevent competition between reseller for the price. This makes the reseller profitable and therefore, the manufactured as well.
Answer:
Option B ($5,500) is the appropriate choice.
Explanation:
The given expression is:
⇒ 
At the zero (0) level of income, the consumption would be the Autonomous consumption.
then,
Y = 0
On substituting the value of "Y" in the given expression, we get
⇒ 
⇒ 
⇒ 
(%)
The definition above is that of MOTELS. Motels are hotels which are typically designed for motorists and which usually have parking lots for vehicles. They are designed in such a way that the rooms open directly to the parking area. Motels became popular around 1920s when highway system allowed people to engage in long distance travelling by roads.
