Answer:
Option (b) is not true.
Explanation:
In a periodic system, the costs of acquisition of inventory are not directly debited to an inventory account; they are usually updated periodically. It is a system where the cost is added in the inventory account at the end of the period only, that is why option (b) is incorrect the cost of inventory or acquisitions are not added directly. Perpetual system is a technique where inventory acquisition cost indirectly added to an inventory account.
Sputnik Enterprises is exploring options for entering into international markets. The key stakeholders have expressed that the primary concern is that Spotnick maintains the maximum amount of control possible to protect its proprietary technology. A greenfield venture entry would be best for Spotnick.
<h3>What Is a Green-Field Investment?</h3>
A green-field (also "greenfield") investment is a type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its operations from the ground up. The strategy involves building everything the company needs from the ground (or green field) up. This can include all facets of the business, from plant construction to marketing and distribution channels.
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Answer:
C. Interest Expense for $32,500
interest expense 32,500 debit
premium on BP 2,500 debit
cash 35,000 credit
--to record interest payment--
Explanation:
proceeds: 1,050,000
face value: 1,000,000
premium on BP 50,000
straight line method is used therefore, we amortize the premium equally between payment:
the bond is outstanding for 10 years at 2 payment per year: 20 payment
50,000 / 20 = 2,500
now the cash outlay in favor to the bondholders:
1,000,000 x 7% / 2 = 35,000
The amortization decreasethe interest expense giving a value of 32,500
making option C correct.
Answer:
selling price= $5
Explanation:
Giving the following information:
She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand.
<u>To calculate the break-even selling price, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
2,500= 7,500 / (selling price - 2)
2,500selling price - 5,000= 7,500
selling price= 12,500/2,500
selling price= $5