Answer:
$51,000
Explanation:
The computation of the new equipment cost is shown below:
= Fair market value + loss recorded
where,
Fair market value is $50,000
And, the loss is computed by taking the difference between the cost and accumulated depreciation. And, after that deduct it from the trade in allowance
In mathematically,
Book value = Cost - accumulated depreciation
= $41,000 - $36,000
= 5,000
Now, the loss would be
= Trade in allowance - book value
= $4,000 - $5,000
= ($1,000)
Now put these values to the above formula
So, the value would be equal to
= $50,000 + $1,000
= $51,000
<h3>In the above scenario, World Corp. engaging in Compensation trade
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Explanation:
Compensation trade is a type of countertrade procedure in which an incoming investment is repaid from the income generated by that investment.
In compensation trade, an investor is repaid by a share of the proceeds or outcomes produced by the goods and services provided by the investor.
Compensation trade is a type of barter where one of the flows is partly in commodities and partly in hard currency.
World Corp. take partial payment for the plant in the form of lumber products produced at the plant is a Compensation trade.
Answer:
Visits to competitors' locations
Explanation:
Analyzing the information obtained in the scenario of the question above, it is correct to state that Jacob plans to use the primary market research method of visits to competing locations.
This method consists of gathering essential data and information for his research collected directly in a place that can serve as a parameter as a real scenario, that is, when visiting competing places, Jacob will be able to achieve his goal of collecting information, which is to analyze through of a real situation as is the behavior of random consumers on their own and understand their reactions.
This method can be effective because it eliminates biased behaviors by research participants, so that it can identify a real consumption situation without any type of interference, and it can be ideal to identify patterns of behavior that help to identify data about changes in consumer preferences, interests and demands, which is the goal of your research.
Answer:
Answer:
Target cost = Market price - Desired profit margin
= $181 - $19
= $162
Explanation:
Target cost is the difference between competitive market price and desired profit margin. In target costing, the market price is fixed by the market forces. The desired profit margin is deducted from the market price so as to obtain target cost.
