Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $550,000. Alex's economic profit on this deal was:__________
a) 25,000
b) Not enough information provided.
c) 50,000
d) 500,000
e) 120,000

Answers

Answer 1

Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  


Related Questions

How should wildlife species like grouse or deer be valued, and how should that value be balanced against the economic interests of a company like Questar? What, if anything, should Questar be doing differently?

Answers

Answer:

The description is summarized in the clarification section below, according to the particular circumstance.

Explanation:

Mostly with rising economic company's best interest including Questar, maintaining wildlife species including grouse as well as deer protected has become much more important. It is not only just the economic gain but also the ecological advantage that would not affect wildlife animals. Preserving the natural environment seems to be the most fundamental way of evaluating animal habitats. The same as deer, animal species should be covered in their habitat. It may also become extinct by upsetting them. The ecosystem is, thus, an important one that should have been taken note that to value certain native wildlife. But because service providers like Questar, who are rocky mountain oil producers, have quite a several financial advantages by exploration in that field, however, this contributes to mining, etc. in something like a wide coverage of the region which destroyed the habitat.Companies should preserve the balance, such as invading the field which is far less occupied by endangered species, reexhibiting certain organisms to a safer location, or putting the region back into the very same old role.

So quester should do these things completely differently, to protect the ecological balance.

A user access agreement typically is __________ than the list of employee expected behaviors within an organization.

Answers

Answer:

Narrower

Explanation:

To make sure that all employees that work in an organization know all their responsibilities, that is ethical and legal. They are required to review and to also accept the terms that has been stated in the user access agreement form.

So for this question, the user access agreement is narrower than the list of employees expected behavior in an organization.

ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, the amount of stockholders equity would

Answers

Answer:

increase by $336,000.

Explanation:

Options are "1. increase by $176,000.  2. increase by $336,000.  3. increase by $160,000.  4. be unaffected."

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.

PATTYCAKE PATTYCAKE PASTAMAN, GIMME PASTA POWER AS FAST AS U CAN

Answers

Answer:

Roll it, put in the oven for me and you

Explanation:

3. Colloids are used in food preparations like in baking
pastries and cakes.yes or no​

Answers

Yes they colloids are used in food perparations like pastries and cakes

Assuming a 360-day year, when a $49,200, 90-day, 6% interest-bearing note payable matures, the total payment will be ______ .
Round your answer to the nearest whole dollar.
a. $2,952
b. $49,938
c. $52,152
d. $49,200

Answers

Answer:

b. $49,938

Explanation:

The computation of the total payment is shown below:

Total payment is

= Principal + interest amount

where,

The Principal is $49,200

And, the interest is

= $49200 × 6% × 90 days ÷ 360 days  

= $738

Now

Total payment is

= $49,200 + $738

=  $49,938

hence, the correct option is b. $49,938

The same is to be considered

On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses

Answers

Answer:

c. variable selling and administrative expenses

Explanation:

On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.

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