I believe the answer would be Trade Routes, however take that with a grain of salt because it may be wrong.
Answer:
The correct option is D,$42,000
Explanation:
The balance on Maxwell capital account=market value of building contributed less the mortgage on the building
market value of the building is $89,000
Mortgage on the building is $47,000
balance on Maxwell capital account=$89,000-$47,000
balance on Maxwell capital account=$42000
The correct option is D.
Care must taken so that one does include the cash of $38,000 contributed by Smart in Maxwell's capital account balance calculation,otherwise one would have concluded that option E,$80,000($42,000+$38,000)
Answer:
D. Direct materials is a variable cost and rent expense is a fixed cost.
Explanation:
- As clearly seen from the data the direct material cost is varying but the rent cost is fixed cost.
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