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3 years ago

The best capital budgeting method for ranking investment projects of different dollar amounts is the

1 answer:

3 0

It is the project profitability index. This is a ratio of payoff to investment o a proposed project. This helps with the ranking of projects as it allows you to quantify the amount of the value created per unit of investment.

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Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, a

malfutka [58]

Answer: See explanation

Explanation:

a. Terry was in the hardware store business and did not acquire the two hardware stores.

The amount that Terry will deduct in 2020 will be $52000 which is the deduction for all expenses.

b. Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2020.

In this case, he'll also deduct $52000 which is the deduction for all expenses.

c. Terry did not acquire the two hardware stores and was not in the hardware store business.

None of his expenses will be deducted. The amount it be deducted is 0.

5 0

3 years ago

Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold

ddd [48]

Answer:

Particulars Amount

Purchase price $700,000

Add: Freight cost $35,000

Add: Electrical connections $5,000

Add: Labor costs $37,800

Add: Bred dough used $900

Add: Safety guards $1,500

Total cost of Equipment $780,200

Note: Repairs cost of $5,000 will not be included

5 0

3 years ago

In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is c

anygoal [31]

Answer:

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

Fixed cost = Total cost - variable cost

Fixed cost = (Average total cost × 100) - (Marginal cost × 100)

= ($2.5 × 100) - ($1 × 100)

= $250 - $100

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 × $1)

= $150 + $50

= $200

Hence,

option (d) $200.00

6 0

3 years ago

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balan

Bad White [126]

Answer and Explanation:

The computation is shown below:

The amount of the adjusting entry for bad debt expense should be

= $45,000 + $5,400

= $50,400

The journal entry should be

Bad Debt Expense Dr. 50,400

To Allowance for Doubtful Accounts Cr. 50,400

(Being the bad debt expense is recorded)

Accounts Receivable 675,000

Allowance for Doubtful Accounts 45,000

Bad Debt Expense 50,400

Accounts Receivable 675,000

Less: Allowance for Doubtful Accounts (45,000)

Net realizable value of accounts receivable 630,000

4 0

3 years ago

Suppose Firm A has a supply curve of Upper Q Subscript Upper A Baseline equals negative 2 plus p and Firm B has a supply curve o

Sonja [21]

Answer:

The total supply can be found by adding individual supply functions as follows:

Qa+Qb = Q

Q = -2+p+0.5p

Q= -2+1.5p where p = $44 therefore;

Q= -2+1.5(44)

Q= 64

Total supply at p = $15

Q= -2+15(1.5)

Q= 20.5

8 0

3 years ago