Answer:
(a) DR Loss on disposal of asset $7,000 CR Land $7,000
Answer:
As you are starting at 45 years until 65 years, meaning you got only 20 years. So, the best investment options I recommend are,
- Certificate of Deposit
- Bonds
- Mutual Funds
Explanation:
First of all, in terms of investing, 20 year time span is NOT that beneficial or wise! Because as you know, to gain the true effect of compounding, it is always better to start early and go on for about 30 or 40 years, even 50! Google about "Warren Buffet"!
However, in this case, the 3 options mentioned above are much better. But I'm not saying others are bad.
Certificate of deposits, Bonds and Mutual funds are relatively less riskier and does not fluctuate much with the market.
Moreover, the interest yields are preferably higher.
Given that the interest rate remains relatively at a higher lever, these 3 options will pay of a decent contribution through compounding over the course of 20 years.
Answer: $4,000
Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.
Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .
Hence,
economic profit = revenues - (interest + salary)
= $50,000 - ($1000 + $45,000)
= $4,000
Answer:
Steve Jobs coming back, Innovations, and Tim Cook taking over as COO
Explanation:
The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.
In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.
This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.
However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.
Answer:
- ($51,306)
Explanation:
Given that,
Loss of Contribution = $75,000
Fixed costs will be eliminated by dropping the CUP line = $23,694
Net loss on dropping cup line:
= Loss of contribution - Gain on fixed costs on dropping cup line
= $75,000 - $23,694
= - ($51,306)
Therefore, the net effect on dropping the cup line on net income is $(51,606).
