The correct option is B
<u>Explanation:</u>
<u>The accounting profit can be calculated with the help of following given formula
</u>
Accounting profit = revenue minus the explicit costs =100000 minus 25000
Thus, after calculations, the accounting profit is equal to $75000
<u>To calculate the economic profit, the following formula is to be used.
</u>
The economic profit = accounting profit minus the implicit costs
=75000 minus 30000
($30000 is his salary as the server which is opportunity cost) =$45000
Thus, the Option B is the correct answer.
Answer:
The Bronco Corporation
The fair value of the equipment is:
= $145,000.
Explanation:
a) Data and Calculations:
Book value of land = $125,000
Fair value of the land = $160,000
Amount received from the equipment owner in exchange = $15,000
Fair value of the equipment = $145,000 ($160,000 - $15,000)
b) This simply means that the equipment is worth less than the land which is exchanged between Bronco and the equipment owner.
Answer:
because you need to know certain things to be able to understand and properly do a job
Explanation:
Answer:
Particulars Amount
Stockholders' equity, $5
September 1, 2016
Add: Revenues $37
Add: Accounts Payable $7
Less: Expenses $(30)
Less: Other assets $(21)
Add: Other liabilities <u>$6</u>
Cash <u>$4</u>
New Towne
Trial balance
For the year ended September 30, 2016
Account title Debit Credit
Cash $4
Other assets $21
Accounts payable $7
Other liabilities $6
Stockholders Equity $5
Revenues $37
Expenses <u>$30 </u>
Total <u>$55 $55 </u>
Revenues $37
Less: Expenses <u>$(30)</u>
Net income <u>$7</u>