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Semenov [28]
3 years ago
8

Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 12 hours produ

cing each good, Jane spends 21 hours producing wine and 3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread?
A. The total production of bread and wine each rise.
B. The total production of bread rises and the total production of wine falls.
C. The total production of bread falls and the total production of wine rises.
D. The total production of bread and wine each fall.

Business
1 answer:
Vesnalui [34]3 years ago
4 0

Answer:

A. The total production of bread and wine rises

Explanation:

<u>Note:  The question appeared incomplete as neither John's nor Jane's production efficiency is provided. A similar question has been attached for reference purpose upon which this answer is based</u>.

Jane takes 2hrs for making a bottle of wine while John takes 3 hours for preparing a bottle of wine. Hence Jane is more efficient in production of wine than John and if Jane devotes more hours to wine production, the production of wine shall rise.

Similarly, John is more efficient in production of bread as he takes 1 hour for producing a loaf of bread against Jane who takes longer i.e 1.5 hours. Thus, if John devotes more time in preparing bread, the production of bread shall rise.

Hence, the correct answer is (A). The total production of bread and wine each rises.

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Answer: False

Explanation:

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2 years ago
The Granny Smith Company agreed to purchase the Red Delicious Company for $800,000. At the date of purchase, Red Delicious had c
BlackZzzverrR [31]

Answer:

D. record goodwill of $200,000 to be reviewed annually for impairment

Explanation:

Given:

The Granny Smith Company agreed to purchase the Red Delicious Company for $800,000.

At the date of purchase, Red Delicious had :

Current assets with a fair market value = $450,000

Non current assets with a fair market value = $750,000

Total liabilities = $600,000

Question asked:

In accounting for this transaction, Granny Smith should...............

Solution:

Here he Granny Smith Company is purchasing another company Red  Delicious Company, we will have to determine the Goodwill owned by  Granny Smith Company by using this formula:

Goodwill =  ( C + NCI + FV ) − NA

C = Consideration transferred

NCI = Amount of non-controlling interest

FV =  Fair value of previous equity interests

NA = Net identifiable assets

Net identifiable assets  = Total assets - total liabilities

Total assets = current assets + non current assets

                     = $450,000 + $750,000 = $1200,000

​Net identifiable assets  = Total assets - total liabilities

                                     = $1200,000 -  $600,000 = $600,000

Goodwill =  ( C + NCI + FV ) − NA

               = ($800000 + 0 + 0) -  $600,000

               = $800000 - $600,000 =  $200,000

Hence, option D is correct, record goodwill of $200,000 to be reviewed annually for impairment.

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3 years ago
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Credit card bill from ABC credit have listed a number of expenses made, these needs to be posted according to the relevant accounting heads.

<h3 /><h3>What is Accounting?</h3>

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6 0
1 year ago
he following percentages apply to Thornton Company for 2018 and 2019: 2019 2018 Sales 100.0 % 100.0 % Cost of goods sold 61.0 64
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Answer:

Income statement is prepared and attached with this answer please find it.

Explanation:

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4 0
3 years ago
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