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3 years ago

When a third party receives an unwarranted cost, it is called a...

Business

1 answer:

Nezavi [6.7K]3 years ago

4 0

Answer:

negative externality

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

In Economics, a positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

On the other hand, a negative externality arises when the production or consumption of a finished product or service has a negative effect and/or impact (cost) on a third party.

This ultimately implies that, a negative externality is generated when a third party receives or bears an unwarranted cost. Some examples of a negative externality is John declining to buy his favorite candy due to an increase in its price, a manufacturing plant that causes noise and pollution to the people living around where it is situated, etc.

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On July 1, 2019, Kim Wald sold an antique for $12,000 that she had bought for her personal use in 2017 at a cost of $15,000. In

elena55 [62]

Answer:

A) A nondeductible loss.

Explanation:

Since Kim bought the antique for personal use, then she cannot deduct any loss resulting form its sale.

In order to determine if the sale of an antique can generate a deductible loss, the most important factor is the use that the owner gave to the antique. E.g., if the owner bought the antique in order to sell it and generate a profit, but wasn't able to, then the loss resulting from a sale is deductible.

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3 years ago

What does it mean that Florida’s Texting While Driving Law is a primary offense?

dsp73

Answer:

Primary Offense Upgrade

In the past, texting while driving in Florida was only a secondary offense. This meant that you could be issued a citation for texting while driving only if an officer had another reason to pull you over. In 2019, texting while driving was upgraded to a primary offense.

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2 years ago

On September 1, 2016, Joy Company paid $6,000 in advance for an eight-month rental space covering the period of September, 2016

ruslelena [56]

Answer:

DR. CR.

Rent Expense $3,000

Prepaid Rent $3,000

Explanation:

Rent paid in advance = $6,000

Rent paid for the period of 8 months. On December 31, 4 months has been passed. So the rent of only 4 month will be accrued.

Accrued Rent = $6,000 x ( 4 / 8)

Accrued Rent = $3,000

Expense accrued and transferred from the prepaid rent account to rent expense account.

5 0

3 years ago

Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $66,000. Immediately prior to the sale, the

kicyunya [14]

Answer:

Journal 1 - Eliminate gain on sale :

Debit : Other Income ($66,000 - $25,000) $41,000

Credit : Machinery $41,000

Journal 2 - Eliminate the unrealized profit from the sale :

Debit : Accumulated depreciation $4,556

Credit : Depreciation $4,556

Explanation:

Grey Corp and Blue Company are in a group of Companies. Grey Corp is the Parent and should prepare Consolidated Financial Statements . Blue Company is a subsidiary (Grey owns more that 50 % of voting rights in Blue Company).

When preparing Consolidated Financial Statements, intragroup transaction must be eliminated. As they happen, a Company trades within its-self that is the reason they should be eliminated.

Concerning the sale of machine by Grey (Parent) to Blue (Subsidiary), we must first eliminate the Income (gain on sale) in Parent as well as the asset that sits in the Subsidiary.

Debit : Other Income ($66,000 - $25,000) $41,000

Credit : Machinery $41,000

Also, we have to eliminate the unrealized profit on the gain of the asset sold.

Debit : Accumulated depreciation $4,556

Credit : Depreciation $4,556

Deprecation calculation :

Deprecation = $41,000 ÷ 9 = $4,556

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3 years ago

intext:"If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for

valkas [14]

Answer:

the seller must record the land at the purchase price = $137,000

Explanation:

Fixed assets like land must always be recorded at historical cost. This is specially important regarding land because it doesn't depreciate and its carrying value will always be the purchase cost since it cannot be adjusted if the fair market value changes.

8 0

3 years ago