Answer:
$0 Gain or Loss
Explanation:
Given that,
Original cost of the equipment = $100,000
Accumulated depreciation on the equipment = $40,000
Book value of the equipment:
= Original cost of the equipment - Accumulated depreciation on the equipment
= $100,000 - $40,000
= $60,000
Gain/Loss = Sale value - Book value of the equipment
= $60,000 - $60,000
= $0
Therefore, the company should recognize a $0 Gain or Loss.
Answer:
The value of the difference between the earnings per share (EPS) forecasts for Feast and Famine is $2.40
Explanation:
The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.
For the data values from the question are used.
<span>For Auslese, the medium sweet wine is made from late picked ripe grapes that are affected by Noble Rot. For Beerenauslese, a very sweet wine is made from very ripe grapes that are affected by Noble Rot. For Trockenbeerenauslese, a very sweet wine made from even riper grapes that are affected by Noble Rot.</span>
Answer:
a. 9%
b. Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits
d. Rate of return of economy = 7%
Explanation:
a. Percentage rate of return = Earning ÷ Investment by founders × 100
= $18 ÷ $200 × 100
= 9%
b. Company rate of profit - Rate of profit of economy
= 9% - 7%
= 2% > 0
Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.
d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.
Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%