Answer: B. FIFO method
Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.
Answer:
It will be sold at $1,186.71
Explanation:
We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%
<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>
C $50 (1,000 x 10%/2 as there are 2 payment per year)
time 16 (8 years x 2 payment per year)
rate 0.035 (7% rate / 2 payment per year)
PV $604.7058
<u>The maturity will be calculate as the PV of a lump sum</u>
Maturity 1,000.00
time 8 years
rate 0.07
PV 582.01
<u>The market price will be the sum of both:</u>
PV cuopon $604.7058
PV maturity $582.0091
Total $1,186.7149
Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>
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Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Answer:
$1,350
Explanation:
Goodwill is the Excess of Cash Consideration over the Net Assets taken over. Net Assets taken over are measured at their Fair Market Value instead of Book Values at the Acquisition date.
Where,
Cash Consideration = $8,000
Fair Value of Net Assets Acquired ($6,000 + ) = $6,650
Therefore,
Goodwill = $8,000 - $6,650
= $1,350