Answer: When the price of clothes in world supply falls due to an expansion in the Chinese clothing industry, the exportation profit on clothes will drop, because the supply is above demand, which will reduced the selling price. The reduction in selling price will be because of competition of customers between the exporters.
The importers will not be affect much, because their will only buy from a dealer who is ready to sale in relation to the decrease in consumer price. Therefore the importers are not in a disadvantage of this event, rather it will grow their profit, as the competition between the exporters increase.
The exporters in this context are those that produce the clothes for exportation. And the importers are those that buys the clothes and sale it in another country.
Because financial markets are <u>Imperfect</u>, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.
<u>Explanation:</u>
An imperfect market is a whole where individual buyers and sellers may influence prices and efficiency, where there is no full transparency of knowledge about products and costs, and where there are large barriers in the sector to enter or exit.
Imperfect markets may not follow the exact measurements of an actual or competitive possible market. If financial businesses were ideal, investors would be constantly and freely responsive to all erudition about any security for trade-in prime and corresponding businesses.
Answer:
b)
Annual Depreciation expense= $58,800
Explanation:
<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>
So we will add the purchase cost to installation , freight charges.
Cost of assets = 300,000 + 14,000 + 40,000 =$354,000
Annual depreciation = (Cost - Scrap Value)/ Number of years
= (354,000 - 60,000)/5
=$58,800
Annual Depreciation expense= $58,800
Answer: Please see explanation for answer
Explanation:
Journal entry to record sale of bonds
Account titles Debit Credit
Cash $50,000,000
Bonds Payable $50,000,000
