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The answer to this question is: Maximum buying price and Price paid
Maximum buying price refers to the largest amont that consumers are willing to pay to obtain a certain product.
Price refers to the total resource that the consumers have spent to obtain a certain product. Comparing this two factors will result in the amount that indicates the consumer's surplus
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Answer:
20.65 years
Explanation:
The number of years for investing $11,000 at rate 11% to have $77,000
PV: $11,000
FV: $77,000
Rate: 11%
FV = PV*(1+rate)^tenor
⇔ 77000 = 11000*(1+11%)^tenor
⇔ (1.11)^tenor = 77000/11000 = 7
we do the logarithm of number 7 base 1.11 to have tenor:
Tenor = 18.65 years
Together with 2 years waiting for graduation, you have to wait 20.65 yerars to have $77,000 from now.
Answer:
Explanation:
The journal entries are shown below:
Notes payable A/c Dr $60,000,000
Interest payable A/c Dr $4,200,000
To Land A/c $32,000,000
To Gain on transfer of land $12,000,000
To gain on settlement of debt $20,200,000
(Being all transactions are recorded and the remaining balance is credited to the gain on settlement of debt)
The Gain on transfer of land is computed below:
= $44 million - $32 million
= $12 million