Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?
a) Corporate state
b) Mixed economy
c) Centrally planned
d) Perfectly competitive
Answer is b) Mixed economy
Answer:
d. $5,204
Explanation:
Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12
= $61,600 - $8,500 * 8% * 6/12
= $53,100 * 8% * 6/12
= $2,124
Depreciation Expenses up to December 31, 2021
= Fair value of equipment / Useful life * 6/12
= ($61,600 / 10) *6/12
= $6,160 * 6/12
= $3,080
Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be
= Interest expenses + Depreciation Expenses
= $2,124 + $3,080
= $5,204
When allocating their assets bankers take into account their reserve equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated.
Answer: Decrease by $70000
Explanation:
Before the Barbecue Division is eliminated, the profit gotten will be:
Revenue from Barbecue Division sales = $510,000
Less: Salaries = $110000
Less: Direct material = $315000
Profit = $70000
Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000
On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
Explanation:
- On November 1, Wright Co. borrowed $20,000 cash from the Third Bank by signing a 90-day, and 6% of interest-bearing note.
- On December 31, it was recorded an adjusting entry to interest expense of $200.
- On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
- Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
- bonds,convertible debt, loans or lines of credit
- The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
- Interest expense is an amount determined by the interest rate on an account.
