Answer and Explanation:
The journal entries are shown below:
For Vaughn:
Equipment $16,080
Accumulated Depreciation $25,460
To Equipment $37,520
To Cash $4,020
(Being the exchange is recorded)
For Bramble:
Equipment(new) $16,750
Accumulated Depreciation $13,400
Cash $4,020
Loss on exchange(balance item) $3,350
To Equipment(old) $37,520
(Being the exchange is recorded)
Only these entries are passed and it attains lacking of commercial substance
The oligopoly is known to have a one producer dominating the market. This results in a few suppliers/sellers in the market, and thus can cause a high increase in the price of the products that are being sold in its respective community.
Answer and Explanation:
As per the data given in the question,
Net income per unit = sale per unit - total cost
Sell of basic kit Process stage 2 kit Net income(inc./dec. )
Sales per unit $22 $34 $12
Cost per unit
Direct materials $8 $4 $4
Direct labor 0 $11 -$11
Total cost $8 $15 -$7
Net income per unit(inc.)$14 $19 $5
Answer:
13%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-74,361.78
Cash flow in year 1 - 4 = 25,000
IRR = 13%