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3 years ago

What is a possible unintended effect of a price floor and price ceiling?

1 answer:

7 0

<span>Price ceilings prevent a price from rising above a certain level.When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result.Price floors prevent a price from falling below a certain level.When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.When government laws regulate prices instead of letting market forces determine prices, it is known as price control.</span>

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On January 1, Year 1, the Accounts Receivable balance was $20,100 and the balance in the Allowance for Doubtful Accounts was $1,

wel

Answer:

$18,400

Explanation:

A/R $20,100

Less: Allowance for doubtful accounts ($1,700)

net realizable value of A/R $18,400

The write off amount is already included in allowance for doubtful accounts on provision basis therefore it can't be separately deducted again.

4 0

3 years ago

The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal p

Andrews [41]

Answer:

D. Replacement cost.

Explanation:

As we know that the inventory should be recorded at the cost or market value whichever is lower

Given that

Original cost is less than the net realizable value subtract the profit margin

So we assume the following figures

Original cost $10

Net realizable value 9

Replacement cost 8

NRV less normal profit margin 7

As if we compare the original cost and replacement cost so the lower value is of replacement cost

hence, the same is to be considered

Therefore the correct option is D.

4 0

3 years ago

Name the different levels of courts and describe their powers?

harkovskaia [24]

A trial court hears witnesses testify and examines other information presented to prove the alleged facts and render a legal decision. An appellate court is concerned with the application of law in the decision of a lower court and may affirm, reverse, amend, or remand the decision of a lower court.

4 0

3 years ago

Concord Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developi

hoa [83]

Answer:

$8,586,000

Explanation:

market price for Littlelaser $100 per unit

units sold 106,000

total revenue generated by Littlelaser = $100 x 106,000 = $10,600,000

required investment = $8,056,000

since the investors require a return on investment of 25%, then the profits generated by Littlelaser should be:

ROI = net income / total investment

25% x $8,056,00 = net income

net income = $2,014,000

target cost = total revenue - net income = $10,600,000 - $2,014,000 = $8,586,000

total revenue $10,600,000

<u>- total cost $8,596,000 </u>

net income $2,014,000

7 0

3 years ago

A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC de

Tom [10]

Answer:

Explanation:

Reduction of cost basis per share.

When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.

7 0

3 years ago