Answer:
Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus
Explanation:
The options to this question wasn't provided. Here are the options : Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus. Both parties experience surplus, so the transaction was equitable. Only Steve benefits from the sale. Srivani will not be happy with her purchase.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Producer surplus is the difference between the price of a good and the least amount the seller is willing to sell his good.
While both parties earn a surplus, the producer surplus exceeds the consumer surplus . Therefore, the seller benefited more from the trade than the consumer.
I hope my answer helps you
Answer:
The depreciation expense for year 1 is $16,000
Explanation:
Depreciation: The depreciation was occurred due to tear and wear, obsolesce, time period, etc
Under the straight-line method, the depreciation should be charged with the same amount over the useful life.
The calculation is shown below:
= 
= 
= $16,000
The depreciation should be charged for $16,000 in year 1. Moreover, it is shown in the income statement in the debit side and in the cash flow statement also.
Answer:
Bond Value is $347.30
Explanation:
Zero coupon bond does not offer any return on the bond that's why it is issued on deep discount value.
Number of years = n = 20 years
Face value = F = $1,000
YTM = 5.43%
Price of the Bond = [ F / ( 1 + r )^n ]
Price of the Bond =[ $1,000 / ( 1 + 5.43% )^20 ]
Price of the Bond =[ $1,000 / ( 1.0543 )^20 ]
Price of the Bond = 347.30
Answer:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
Explanation:
Th adjusting entry is shown below:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues
Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31
= $10,800 × 4 months ÷ 6 months
= $7,200
