Answer:
$60,000
Explanation:
Data provided in the question:
Premiums paid = $100,000
Cash policy dividends received = $20,000
Cash surrender value = $140,000
Now,
The owners adjusted basis in the property
= Premiums paid - Cash policy dividends received
= $100,000 - $20,000
= $80,000
Therefore,
The gain on the policy = Cash surrender value - owners adjusted basis
= $140,000 - $80,000
= $60,000
Answer:
TIE 6.26238
Explanation:
Times Interest Earned:
EBIT = earnings before Interest and Taxes
Answer:
The Journal entries are as follows:
(i) On April 6,
Cash A/c Dr. $5,000
To Sales $5,000
(To record the cash sales )
(ii) On April 6,
Cost of goods sold A/c Dr. $3,000
To merchandise inventory $3,000
(To record the cost of goods sold)
(iii) On April 12,
Sales return and Allowances A/c Dr. $630
To cash $630
(To record the sales return)
(iv) On April 12,
merchandise inventory A/c[(630 ÷ 5,000) × 3,000] Dr. $378
To cost of goods sold $378
(To record the cost of sales return and allowances
Answer:
Total revenue will rise if the price of cigarettes rises
Explanation:
Demand is inelastic if a change in price leads to a little change in quantity demanded. If price is increased, the fall in quanitity demanded would be little compared to the increase in price so total revenue would increase.
I hope my answer helps you
Answer:
The correct answer is option A.
Explanation:
The marginal cost is the cost incurred in the production of an additional unit of output. In other words, it is the change in total cost due to a change in output.
The average total cost is the ratio of total cost and the quantity of output. It measures the average cost incurred in the production of each unit of output.
The average total cost curve is U shaped. The marginal cost curve intersects the average total cost curve at its minimum point. So when the marginal cost is greater than the ATC or average total cost is it implies that ATC is rising.