Answer:
a) 25,000
Explanation:
The computation of the economic profit is shown below;
Economic profit is
= Revenue - Explicit cost - Implicit cost
= $550,000 - $500,000 - $500,000 × 5%
= $550,000 - $500,000 - $25000
= $25,000
Hence, the economic profit on this deal was $25,000
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Government regulations help balance negative externalities such as no smoking rules enforced to mitigate the effects of second-hand smoke.
<h3>What is negative externality?</h3>
Negative externality is when the activities of producers or consumers negatively affect third parties not involved in production or consumption activities.
For example, smoking affects those who are not smoking. They are affected by the second-hand smoke. To prevent this, no smoking rules can be enforced.
To learn more about externalities, please check: brainly.com/question/26266710
Providing and recording documents are performed by : The closing agent
<h3>Who is a
closing agent?</h3>
Closing agents are basically professionals who acts directly for the buyer by making interest of the buyer known to the seller. They are usually associated with real estate transactions.
A closing agent could be a lawyer speaking to a bank or lender. The actual closing is conducted by a closing agent who might be a worker or employee of the lender or the title company or organization.
Other duties of a closing agent are :
- Ordering title work and a property survey.
- Issuing commitment title.
- Assisting with obtaining requisite insurance
- Issuing and sending the title insurance policy to both the buyer and lender
- Assembling the loan closing package .
Therefore, closing agent responsible for providing and recording documents.
Learn more about closing agent here : brainly.com/question/8023863
16% is the answer.
<u>Explanation:</u>
<u>The following is used in order to calculate the cost of the retained earnings.
</u>
The Calculation of cost of retained earnings by using bond yield plus the risk premium method
= Long term bond yield + the risk premium
The Long term bond yield = 12 percent
The risk premium = 4 percent
Cost of retained earnings = 12 percent plus 4 percent = 16 %
Therefore, the correct option will be with the 16 percent
.
Answer:
b. $4,908,000
Explanation:
According to the FASB GAAP, the straight line method is used in this given question which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($40,900,000 - $4,090,000) ÷ (15 years)
= ($36,810,000) ÷ (15 years)
= $2,454,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation would be
= Annual year depreciation × number of years
= $2,454,000 × 2 years
= $4,908,000
