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2 years ago

Individuals and countries specialize because the opportunity cost of producing goods and services: Multiple choice question.

1 answer:

4 0

Individuals, corporations, and economies specialize because the opportunity cost of producing goods and services differs from country to country, business to business, and individual to individual.

Persons, Corporations, and Economies are bound to specialize in the production of goods and or services in which they hold a stronger comparative advantage than their competition.

<h3>What is comparative advantage?</h3>

This is defined as the ability of an individual, corporate entity, or national to perform an economic activity more efficiently or at a lower (opportunity cost) than the other.

Examples of economic activities are:

Resource management
production of services and goods
distribution of services and goods
consumption of services and goods

See the link below to learn more:

brainly.com/question/7045530

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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally

kicyunya [14]

Answer:

Bargain Electronics

Bargain Electronics would realize a net income of $6,000 by accepting the special order.

Explanation:

a) data and Calculations:

Production costs of MP3 Player:

Variable cost = $20

Fixed cost = $10

Total costs = $30

Selling price = $45

Special order from a foreign wholesaler = 3,000 units

Special order selling price = $25 per unit

Additional special shipping costs per unit = $3

Variable production costs = $20

Total costs for the special order = $23 ($3 + $20)

Net income from special order = $6,000 ($2 * 3,000)

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2 years ago

Who may be affected by monetary penalties imposed by the Internal Revenue Service when a Tax Professional fails to meet due dili

Evgesh-ka [11]

Answer:

Both the tax practioner and the assessee will be liable for penalties under IRS 6695(a)

Explanation:

When a tax preparer is paid to arrange the tax return of a client they must follow preparer due diligence laws.

This is the case when the preparer is trying to get a refund of earned income tax credit, child tax credit, American opportunity tax credit, or filing of head of household status.

The effect on the tax preparer's client include:

- refund of amounts collected in error because of wrong return

- a two year ban from claiming credits if error is due to recklessness

- a ten year ban if error is as a result of fraud

The consequences for the tax preparer includes:

- for each requirement not met a $500 penalty

- suspension from the IRS e-file

- a ban from tax preparations

- in cases of fraud criminal charges can be made

5 0

2 years ago

King corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flow

Evgen [1.6K]

Answer:

King should recognize a loss on impairment of $60,000

Explanation:

In terms of IAS 36, Impairement happens when the Carring Amount of an Asset is Higher than the Recoverable Amount of an Asset.

Recoverable Amount

Recoverable Amount is the Higher of :

(a) Assets Value In Use, and

(b) Fair Value Less Cost to Sell

therefore:

Assets Value In Use = $700,000

Fair Value Less Cost to Sell = $560,000

therefore Recoverable Amount is $700,000 ( higher)

Carrying Amount

Book Value = Carrying Amount = $760,000

Impairement Anaylsis

Carrying Amount ($760,000) > Recoverable Amount ( $700,000)

Recognised Imparement loss is $60,000 ($760,000- $700,000)

4 0

2 years ago

Company J acquired all of the outstanding common stock of Company K in exchange for cash. The consideration transferred exceeds

slamgirl [31]

Answer: The amounts have to be determined using fair value for plant and equipment and for long term debt.

Explanation:

Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.

Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.

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3 years ago

A stockholder in a Subchapter S corporation:

Lina20 [59]

Answer:

The answer is C.

Explanation:

The shareholders are the owners of the company while board of directors are the agents( although many directors now have shares in the company) that runs the business on behalf of the shareholders. The problem associated with directors not pursuing the interests of the shareholders is known as agency problem.

Board of directors/directors are to make sure the business run smoothly while the shareholders provide the fund to meet emergencies.

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3 years ago