Matt co. is the lessor in connection with an operating lease. matt co. would record a depreciation expense. The lessor records it as a depceciation expense becuase they are using a stright-line lease as a source of revenue. As the operation lease declines, it will keep showing as a depreciation on their balance sheets.
Answer and Explanation:
(a) ε = %ΔQ/%Δp
= ((200,000 − 250,000)/250,000)/((12 − 10)/10)
= −1.00.
Demand is unit elastic since | ε | = 1.00. Alternatively, if a price increase of 20 percent leads to a 20 percent decline in ticket sales, the elasticity is −20/20 or −1.00.
(b) The price increase is not a good idea . Total revenues have fallen from $2,500,000 = (250,000)(10) to $2,400,000 = (200,000)(12). Anytime elasticity is greater than one, an increase in prices will result in a drop in total revenue.
Which ability does the following ex represent? as financial planner, you advise people about where to invest their money. IM PRETTY SURE ITS SYSTEMATIC.
Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
Answer:
2015 - $24,000
2016 - $0
Explanation:
The computation of profit for each year is shown below:
For 2015:
The profit = Service revenue - expenses incurred
= $72,000 - $48,000
= $24,000
For 2016:
There is no transaction to record under the accrual basis of accounting. So, the profit is zero
As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts
