Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
Answer and Explanation:
The computation is shown below:
a) The adjusted basis for the land and the building at the acquisition date is
Land = $100,000
Building = $400,000
We recognized the purchase price of land and building
b. And, the adjusted basis for the land and the building at the end of 2019 is
Land = $100,000
Building is
= $400,000 - $4,708
= $395,292
We considered the cost recovery for the computation above
Answer:TRUE
Explanation: A bid is a proposal made by a supplier or contractor to another Organisation who wants to the service or the product of the bidder. A bid is usually requested from different parties and it is contested by the bidders any successful bidder wins the Project or contract.
A bid that is signed by the automatically becomes binding and can be tendered in the court as a legal document.
Answer:
45.69%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ average investment
where,
Net income is
= Annual revenues - annual operating expenses
= $120,000 - ($38,000 + $232,000 ÷ 8 year)
= $120,000 - ($38,000 + $29,000)
= $53,000
And, the average investment would be
= (Initial investment) ÷ 2
= ($232,000) ÷ 2
= $116,000
Now put these values to the above formula
So, the rate would equal to
= $53,000 ÷ $116,000
= 45.69%
