Answer:
skimming prices
Explanation:
Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.
The answer is a, the more you wait to get you money back the more you charge in interest, you have to be paid to wait.
Answer:
Debit : Cash $44,000
Debit : Inventory $76,000
Debit : Land $109,000
Debit : Buildings $249,000
Debit : Equipment $121,000
Credit : Accounts Payable $63,000
Credit : Shares (30,000 x $6) $180,000
Credit ; Gain on Bargain Purchase $356,000
Explanation:
Assets and liabilities are acquired at their Fair Value Amounts instead of Cost or Book Value.
A transfer of some of the asset of a Company is referred as a Asset acquisition transaction instead of Business Combination (Acquirer obtains control of one or more businesses).
This is an asset Acquisition Transaction and no consolidated Financial Statements will be prepared.
The excess of Net Assets Acquired over the consideration is called Gain on Bargain Purchase and this amounts to $356,000.
<h2>Gross Profit = 500,000 (Sales -COGS)</h2><h2>Net Profit = Gross Profit - Indirect exp- Dep)</h2><h2> = 500,000-55,000 -250,000</h2><h3> = 195,000</h3><h2>Tax = 66,300</h2><h2>Net Profit After TAX = NPBT- Tax</h2><h2> = 195,000- 66,300 = 128,700</h2>
Explanation:
Sale -Cost of goods Sold = Gross Profit
1,250,000-750,000 = 500,000
Net profit = Gross Profit - Indirect Exp - Depreciation)
= 500,000-55,000 -250,000
= 195,000
Tax = 195,000 x 34/100
= 66,300
NPAT = NPBT - tax
195,000-66,300 = 128,700
