Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
answer: c.
Explanation:
Some of the biggest benefits of personal loans are that they can help build credit, they allow consumers to pay off big expenses over time, and they can be used for anything. Major drawbacks of personal loans include interest charges and fees, along with potential credit score damage if things don't go as planned
Answer:
3
Explanation:
Labor, or a labor force, is the number of workers at a producer’s facility. These Laborers utilize capital resources to produce a product. Without a labor force, a producer cannot produce.
Producers must determine the most efficient number of workers to meet their production needs.
This number is determined by analyzing the Marginal Product of Labor. This is the amount of the change in production produced by each additional worker. This change can take on three forms.
When a producer decides to higher an additional worker and, as a result, the number of items produced per worker per unit of time increases, the producer is said to be enjoying Increasing Marginal Returns.
Ecuation:
MP=Marginal Product
Q=quantity of cakes per day
L=labor force per day
Answer:
retention ratio
Explanation:
Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.
When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.
Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.