Answer:
See the explanation below.
Explanation:
Fair value of expired option = 60,000 * $1 * 10% = $6,000
Journal entries will be as follows:
<u>Details Dr ($) Cr ($) </u>
Paid-in capital - stock options 6,000
Paid-in capital - expiration to stock options 6,000
<u>
</u><em><u>To record the expiration of stock option </u></em>
E S ( elasticity of supply ) = .5 ( supply is inelastic: E S < 1 )
The formula is:
E S = Δ Q / Δ P * P / Q,
where: Δ Q is the change in quantity, Δ P is change in price, P is initial price and Q is initial quantity.
.5 = Δ Q / 25 * 50 / 100,000
Δ Q = .5 * 25 * 100,000 / 5
Δ Q = 25,000
Quantity at the new price: Q ( new ) = 100,000 + 25,000 = 125,000
<span>Maximum prices in economics can be also known as Price Ceiling, where it is the legal maximum prices that producers can sell their good at. However, as this causes a market disequilibrium, ceteris paribus, there will exist a surplus of goods produced. This is due to the signalling and incentive effective on producers and consumers resulting in the increase of price (that has been set by the government).
Consumers would consume less of the product as it is more pricey than before, hence they are less willing and able to buy the product at the new price. Producers on the other hand sees more revenue to be earnt through higher prices and hence would devote their resources into producing that product. Hence the mismatch of supply and demand results in a surplus of products and would likely result in the government buying all the surplus out of interest for producers.</span>
Answer:
Cost of Inventory at June 30 is $1,010
Explanation:
In LIFO the unit purchased at the last will be sold first. The earlier purchases will remain in the inventory. In this inventory system the cost of goods sold is based on the recent prices of the product.
June 1, Beginning Inventory ( 42 x $20 ) $840
June 15, Sales ( 34 x $20 ) ($680)
June 29, Purchases ( 34 x $25 ) $850
Closing Inventory = ( ( 42-34 ) x 20 ) + $850 = $1,010
Answer:
Dirty price of the bond = $10,098.63
Explanation:
Clean price = $10,000
Accrued interest = F * (C / M) * (D / T) ............... (1)
F = Face value = $10,000
C = Total annual coupon rate = 8%, or 0.08
M = Number of coupon payment per year = 1
D = Days since last payment date = 45
T = Accrual period (Number of days between payments) = 365
Substituting the values into equation (1), we have:
Accrued interest = $10000 * (0.08 / 1) * (45 / 365) = $98.63
Dirty price of the bond = Clean price + Accrued interest = $10,000 + $98.63 = $10,098.63
