Answer:
3. Canada has a comparative advantage, relative to other countries, in producing baseball bats.
Explanation:
Comparative advantage is the ability of the country to produce good or services for a lower opportunity costs for example the oil producing countries have comparative advantage in chemicals.
Options 1,2 and 4 are incorrect .
Absolute advantage is the ability of a country or region to produce greater quantity of units with the same no of inputs in the same time.
Answer:
$72,700
Explanation:
According to IAS 16, the cost of an asset includes all the costs that are related to its purchase and until it is put to use. These costs include purchase price , commission , transportation , installation legals and warranties.
Please note that the cost of repairs during installation is not capitalized but expended,
Workings.
Cost of purchase - $70000
Sales tax $700
Freight - $800
Insurance - $150
Installation cost - $1050
Total Cost - $72,700
Answer:
book value at the end of year 3 = $115,200
Explanation:
Year 1 Depreciation expense
400,000 x 20% = 80,000
Year 2 Depreciation expense
400,000 x 32% =128,000
Year 3 Depreciation expense
400,000 x 19.2% = 76,800
Book value = carrying value - depreciation for the year
or
purchase - accumulated depreciation
Answer:
General Journal
Debit
Credit
a(1)
Accounts receivable
$1,349,100
Sales
$1,349,100
a(2)
Cost of goods sold
$977,100
Merchandise inventory
$977,100
b
Allowance for doubtful accounts
$18,100
Accounts Receivable
$18,100
c
Cash
$669,200
Accounts Receivable
$669,200
d
Bad Debt
Expense
[Refer working note 1]
$35,307
Allowance for doubtful accounts
$35,307
e(1)
Accounts receivable
$1,514,600
Sales
$1,514,600
e(2)
Cost of goods sold
$1,299,000
Merchandise inventory
$1,299,000
f
Allowance for doubtful accounts
$26,700
Accounts Receivable
$26,700
g
Cash
$1,110,700
Accounts Receivable
$1,110,700
h
Bad Debt
Expense
[Refer working note 2]
$36,507
Allowance for doubtful accounts
$36,507
.
.
Working note 1 - Computation of bad debt expense for the
year 1
Accounts receivables beginning balance
$0
Add: Credit sales
$1,349,100
Less: Collections
($669,200)
Less: Write-off's
($18,100)
Accounts receivables ending
balance
(a)
Answer:
D. $93,600
Explanation:
In order to find the total dividends paid out to the preferred stockholders we need to find the dividend per share and then multiply it by 8,000 as there are 8,000 preferred shares.
Dividend per share =
par value * dividend rate
90*0.13=11.7
Total amount paid to stock holders=
Dividend per share * no of shares
11.7*8,000=93,600