Answer:
(d)$105,000.
Explanation:
Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored
In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value of machinery - fair value of machinery
= $520,000 - $415,000
= $105,000
Answer:
See answers below
Explanation:
The formula for labor productivity = Monetary value of goods and services produced / Total number of hours worked.
• Deluxe car = (2,600 × $7,600) / 19,000 hours × $13
= $80
The formula to find the inflation or deflation rate is (P2-P1)/P1 x 100%, therefore you get 172.2-166.6 divided by 166.6, giving you the inflation rate of 3.36 rounded to two decimal places.
Answer:
Option (a) and (c) are correct.
Explanation:
We know that rent control is an example of price ceiling. If the price of apartments set below the equilibrium price level then there is increase in the demand for apartments. So, the demand for apartments exceeds quantity supplied at the prevailing market price.
(a) Therefore, the quality of rental housing falls because of the lower price of the apartment. As this will become less profitable for the landlords, so they are least interested in the maintenance of the apartments.
(b) This will also lead to develop black market. The landlords are trying to fool the higher authorities and rent their apartments at a higher cost because this will be done without any type of legal documentation of the apartments or results from the manipulation of the rules.
