Answer:
$101,820
Explanation:
the total cost basis of the machine:
- purchase price = $94,000 x 98% = $92,120
- transportation costs = $4,000
- installation costs = $5,700
- insurance costs = $0 (operating expense)
total asset basis = $101,820
A business can capitalize certain necessary costs when it acquires an asset and they include freight, installation and insurance costs. But the insurance costs that can be capitalized are those incurred to insure an asset while it is being transported or installed, after the installation is over any insurance costs are operating costs.
A company with significant capital and activities in multiple countries is known as a multinational corporation.
A multinational corporation generally has offices or factories in different and multiple countries and a centralized head office where they coordinate global management.
Other than its home country, a multinational corporation has facilities and other capital in at least one country. Many multinational enterprises are based in developed nations.
The multinational advocates create high-paying jobs and technologically advanced goods in countries that otherwise would not have reach to such opportunities or goods.
Some examples of multinational corporations include- Apple, Samsung, Starbucks, Ikea, Nike, McDonalds, Pepsi etc.
Hence, option A is correct.
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Answer : a. True
It is true that price ceilings are created to keep products affordable for consumers. Price ceilings are set by the government. It is a government initiative to regulate the prices of commodities, products and services in the market to protect the consumers' interests and rights. In deciding the price ceiling, it must be considered that it should be below the natural market equilibrium. Legally, the prices can't just be raised suddenly but must follow certain legal and business procedures.
The federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in the case when current output is less than potential output.
The Federal reserve does enhance the economy by reducing the interest rate that banks pay each other for overnight loans.
- However, if the current output is greater than potential output, then, the FED would try to reduce current output by increasing the interest rate.
In conclusion, the federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in this case when the current output is less than potential output.
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