Abel and Carr formed a partnership and agreed to divide initial capital e .

Procurement refers to the process of finding and purchasing goods Abel And Carr Formed A Partnership And Agreed To Divide and services from outside sources for use in the business process.

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This subsidy effectively shifts the supply curve to the right, reducing the price and increasing the quantity of theater tickets available to the public. The forward contract specifies the parties involved, the asset being exchanged, the price, and the delivery date. They can be personalized to meet the exact needs of both the purchaser and the seller. To find the profit-maximizing price and quantity, we need to calculate John’s total revenue and total cost functions first. Gillette could have done differently in 1996 that would have had a more positive impact on company and industry profitability. For instance, it could have developed a better marketing strategy to differentiate Duracell from other competitors and raised its profile in the industry.

• In summary, business models are essential for external stakeholders as they provide valuable information about a company’s value proposition, revenue generation, and overall sustainability.
• To calculate the expected cash collections from customers in December, we need to consider the cash collection pattern and the budgeted sales for November and December.
• In this case, the bonus amount is $16,000, so Carr’s unidentifiable asset should be debited for $16,000.

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In other words, people are more willing to accept a single large loss rather than multiple smaller losses. This is because the emotional impact of a single large loss is perceived to be less severe than the cumulative effect of several smaller losses. Prospect theory suggests that individuals tend to evaluate and weigh potential gains and losses differently. The concept of «combine losses» refers to the tendency of individuals to prefer situations where losses are consolidated or aggregated. Explain how «Combine losses» and «Split up gains» are related toprospect theory.

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• This adjustment ensures that each partner’s capital account reflects their relative contributions to the partnership.
• However, if the government also imposes a price ceiling in addition to the subsidy, it can create a problem.
• Furthermore, accepting the special order will not have any impact on the company’s regular sales, as there is sufficient production capacity available to fulfill this order.
• This subsidy effectively shifts the supply curve to the right, reducing the price and increasing the quantity of theater tickets available to the public.
• With excess demand, some consumers who are willing to pay the higher equilibrium price are unable to obtain tickets at the controlled price.

A rise in the price of substitutes decreases the demand for a product because it makes the substitute product more attractive to the consumer. If the price of a substitute for a product goes up, consumers will switch to that substitute product and decrease the demand for the original product. In the labor market, sellers (job seekers) can send signals to buyers (employers) to convey information about their product quality (skills, abilities, and qualifications). However, the supply curve would be vertical, representing the limited supply of theater tickets. To alleviate this issue, the government can implement a subsidy to lower the price for consumers.

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Yes, Li Company should accept this special order since the contribution margin per unit is $20, which exceeds the fixed cost per unit of $0. By accepting this order, the company will generate additional income amounting to $68,000, thereby contributing to its profits. Furthermore, accepting the special order will not have any impact on the company’s regular sales, as there is sufficient production capacity available to fulfill this order.

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According to the bonus approach for adjusting capital accounts, Carr’s unidentifiable asset should be debited for $16,000. The document contains an accounting course document on partnership formations and exercises. Absolute music is instrumental music composed for its own sake, without any explicit or specific association with a story, image, or text. It is created for the enjoyment of the listener and is not directly tied to any sponsorship or public event. Therefore, the statement that absolute music was created for sponsors and the public is false. To record the investment of $250,000 in Dakota Company, Carolina Company should debit the investments account.

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Depreciation is the loss of value of an asset over time due to wear and tear, obsolescence, or any other factor. It is deducted from the cost of the asset to calculate the net book value of the asset. The straight-line method is the most commonly used method for calculating depreciation expense. It is calculated by dividing the cost of the asset by the number of years it is expected to last. By identifying and understanding the activities and tasks involved in the production process, ABC provides a more accurate and detailed view of how resources are consumed and costs are incurred.

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The Bonds Payable account is debited for the purchase price of the bonds, which is $93,227. This represents the initial investment made by Grouper Aggregates Ltd. in purchasing the bonds. So John should perform 900 repairs per week at a price of $110 per repair to maximize his profits.

In the opening-discussion case of Chapter 1, «An Interconnected World,» social media is credited with playing a significant role in facilitating global collaboration and networking. According to the bonus approach, this difference is treated as a bonus to Carr for joining the partnership. To adjust the capital accounts, Carr’s unidentifiable asset account is debited for the amount of the bonus. In this case, the bonus amount is $16,000, so Carr’s unidentifiable asset should be debited for $16,000. The bonus approach is used to adjust the capital accounts when partners contribute assets with different values. In this case, Abel contributed $100,000 and Carr contributed $84,000 in identifiable assets.

To calculate the expected cash collections from customers in December, we need to consider the cash collection pattern and the budgeted sales for November and December. Distribution channels were limited, which made it difficult for Gillette to reach its target customers. The company was not able to penetrate markets in other countries as effectively as it had done in the shaving industry. Social media has the potential to increase understanding and empathy among people of different nations. Social media and social networks have greatly impacted globalization, with their ability to connect people and ideas across the globe.