(b) Elaborate any FOUR (4) factors that influence debt security yields to vary. (8 marks)

According to mercantilism, countries should increase their financial riches by promoting exports and limiting imports. This wealth is typically represented by gold.

Governments utilised their economy to strengthen state authority at the expense of other nations in a process known as mercantilism. Governments wanted to build up their riches in the form of bullion and make sure that exports outpaced imports (mostly gold and silver). The government concentrates on raising exports and lowering imports, in accordance with the doctrine of mercantilism.

Also, according to this view, nations should promote exports in order to get rich. Via trade restrictions, mercantilism was a type of economic nationalism that aimed to boost a country's power and wealth. Its objective was to boost a state's gold and silver supplies.

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Chase Bank is differentiating its credit card by providing a toll-free phone number that connects directly with a customer service agent, rather than an automated system. Chase is differentiating this credit card through support service.

This approach emphasizes the importance of providing quality customer service and differentiates the credit card from competitors who may rely solely on automated systems or may not provide a direct line to a customer service agent. Differentiation through service is a strategy that involves offering superior customer service, technical support, or other services that distinguish a product or service from those of competitors.

By providing exceptional service, companies can build customer loyalty and increase customer retention, leading to long-term success and profitability.

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The size of the withdrawals that can be made at the end of each quarter for the next 10 years, with a present value of $150,000 and an interest rate of 7.5% compounded quarterly, is $5,548.21, rounded to the nearest cent.

To calculate the size of the withdrawals that can be made at the end of each quarter for the next 10 years, we can use the present value of an annuity formula, which calculates the equal periodic payments required to exhaust a present value over a specified period, given an interest rate and compounding frequency.

The formula is:

PMT = PV x (r / (1 - (1 + r)⁻ⁿ))

Where:

PMT = Payment (withdrawal amount)

PV = Present value

r = Interest rate per period

n = Number of periods

In this case, the present value is $150,000, the interest rate is 7.5% per year, compounded quarterly, and the number of periods is 40 (10 years x 4 quarters per year).

Converting the interest rate to a quarterly rate:

r = 7.5% / 4

r = 1.875%

Substituting the values into the formula:

PMT = $150,000 x (0.01875 / (1 - (1 + 0.01875)⁻⁴⁰))

PMT = $150,000 x (0.01875 / 0.50414)

PMT = $5,548.21

Therefore, the size of the withdrawals that can be made at the end of each quarter for the next 10 years is $5,548.21, rounded to the nearest cent.

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To calculate the size of the withdrawals, we can use the formula for the present value of an annuity:

PV = C × [tex](1 - (1 + r)^{(-n)} )[/tex]

where PV is the present value, C is the size of the quarterly withdrawals, r is the interest rate per quarter (0.075/4 = 0.01875), and n is the number of quarters (10 years * 4 quarters per year = 40 quarters).

In this case, we know that the present value is $150,000, the interest rate is 7.5% per year, compounded quarterly, and we want to find the payment (PMT) that can be made at the end of each quarter for 10 years, or 40 quarters.

Substituting the given values, we get:

150,000 = C × [tex](1 - (1 + 0.01875)^{(-40)} )[/tex] / 0.01875

Solving for C, we get:

C = 150,000 × 0.01875 / [tex](1 - (1 + 0.01875)^{(-40)} ))[/tex]

C ≈ $4,405.94

Therefore, the size of the withdrawals that can be made at the end of each quarter for the next 10 years is approximately $4,405.94.

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The most important thing Isla can do to ensure she recruits the right people for her sales management position is to clearly define the desired skills and qualifications for the role, create a thorough job description, and implement a comprehensive screening and interview process to identify candidates with a strong sales aptitude and the ability to thrive in her team.

When it comes to recruiting the right salespeople, there are a few key things Isla can do to ensure success.  Firstly, Isla should define what she's looking for in a salesperson. This means identifying the key skills and traits that make someone successful in sales, such as strong communication skills, a competitive spirit, and a results-driven mindset. Having a clear understanding of the qualities she's looking for will help Isla identify the best candidates for the job.

Secondly, Isla should cast a wide net when recruiting. She can advertise the position on job boards, social media, and her company's website to attract a diverse range of candidates. This will increase the chances of finding someone who is the right fit for the role.

Thirdly, Isla should be thorough in her recruitment process. This means conducting thorough interviews and assessments to evaluate each candidate's skills and experience. She should also consider factors like cultural fit and potential for growth within the company.

Finally, Isla should be transparent about the expectations and requirements of the sales role. This means outlining the sales targets and quotas that the successful candidate will be expected to meet, as well as the support and training that will be provided. Being upfront about these factors will help Isla attract candidates who are motivated and committed to the role.

By following these steps, Isla can recruit the right salespeople to drive success in her team and company.

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The strategy is known as a "straddle.

The payoff profile of a straddle is characterized by limited losses if the price of the underlying asset remains close to the strike prices and potentially large gains if the price moves significantly away from the strike prices.

The given option strategy involves the simultaneous purchase of a call option and a put option with the same maturity, different strikes, and notional of 50,000 EUR.

Specifically:

- Call option: Premium 0.045 USD, strike price 1.397 USD/EUR

- Put option: Premium 0.025 USD, strike price 1.381 USD/EUR

This strategy is known as a "straddle." A straddle is typically used when an investor expects high volatility in the underlying asset (in this case, the EUR/USD exchange rate) but is uncertain about the direction of the price movement.

The payoff profile of a straddle is characterized by limited losses if the price of the underlying asset remains close to the strike prices and potentially large gains if the price moves significantly away from the strike prices. The maximum loss is equal to the combined premiums paid for the options. A straddle can be used for hedging purposes under specific circumstances.

For example, if an investor anticipates significant volatility in the EUR/USD exchange rate due to an upcoming event, such as a major economic announcement, they can use a straddle to hedge their exposure to the currency pair.

This strategy helps protect against extreme price movements in either direction while allowing for potential gains if the price moves substantially away from the strike prices.

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After the British prohibited slavery in 1807, Ashante merchants in West Africa switched to providing commodities that were in great demand in industrializing Britain.

Demand of commodities such as palm oil, gold, and other minerals occured. The British had relied heavily on the transatlantic slave trade to supply cheap labor for their colonies in the Americas, but the abolition of the slave trade forced them to seek alternative sources of raw materials and commodities. This led to an increase in demand for natural resources from West Africa, which the Ashante merchants were able to supply. However, this shift in trade patterns also had negative consequences for the region, including the exploitation of natural resources, environmental degradation, and political instability.

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N purchases an annuity by making payments in an amount no less than $100 quarterly. The annuity described in this scenario is a "Quarterly Payment Annuity."

An annuity is a financial product that provides a regular income stream in exchange for a lump-sum payment or a series of payments. In this case, N is making payments in an amount no less than $100 every quarter, which means that the payments are made every three months or four times a year.

This type of annuity is often used to provide a steady income stream during retirement, as the payments can be structured to continue for the lifetime of the annuitant or for a fixed period of time. The amount of the payments is typically based on a number of factors, including the amount of the initial investment, the age and gender of the annuitant, and prevailing interest rates.

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The intrinsic value of the put option is $0.00 and the time value is $2.00.

You've bought a put option on ABC Inc. for $2.00, with a three-month expiration and a strike price of $10.00. Currently, ABC is trading at $10.35 per share. We need to determine the intrinsic value and time value of this option.

Step 1: Calculate the intrinsic value

Intrinsic value = max(0, strike price - stock price)

Intrinsic value = max(0, $10.00 - $10.35)

Intrinsic value = max(0, -$0.35)

Intrinsic value = $0.00 (since it's not in the money)

Step 2: Calculate the time value

Time value = option premium - intrinsic value

Time value = $2.00 - $0.00

Time value = $2.00

So, the intrinsic value of the put option is $0.00 and the time value is $2.00. The option's total value (intrinsic + time value) is closest to $2.00.

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The lease liability is the present value of the lease payments, which is calculated using the interest rate of 5%.

The amortization schedule for Donahue is as follows:

DONAHUE CORPORATION
Lease Amortization Schedule
Annuity-Due Basis
Date Annual Payment Interest on Liability Reduction of Lease Liability Lease Liability
1/1/20 $4,892 $ $4,892 $25,000
1/1/21 $4,892 $1,006 $3,886 $21,114
1/1/22 $4,892 $1,056 $3,836 $17,278
1/1/23 $4,892 $1,038 $3,854 $13,424
Total $19,568 $3,100 $16,468 $77,816

The lease expense schedule is calculated based on the straight-line method. The annual lease expense is the total lease payments divided by the lease term, which is 4 years. The interest on the lease liability is calculated using the effective interest rate, which is the interest rate that produces the same periodic lease payments as the actual lease. The amortization of the right-of-use (ROU) asset is the difference between the lease expense and the interest on the lease liability. The carrying value of the ROU asset is the initial value of the asset minus the accumulated amortization.

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Nadia's dominant strategy is to always choose Clean, as it yields a higher payoff regardless of Maddie's choice. Option 3 is correct.

To determine Nadia's dominant strategy, we need to compare her payoffs from choosing Clean versus Don't Clean, regardless of Maddie's choice. If Nadia chooses Clean, her payoffs are 30 if Maddie also chooses Clean, and 50 if Maddie chooses Don't Clean.

If Nadia chooses Don't Clean, her payoffs are 7 if Maddie chooses Clean, and 10 if Maddie also chooses Don't Clean. Thus, regardless of Maddie's choice, Nadia's payoff is always higher when she chooses Clean. Therefore, her dominant strategy is to always choose Clean.

Option 3 holds true.

The complete question:

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Initially, the company records each liability at the amount of cash a creditor would accept to settle the liability immediately after a transaction or event creates the liability. The company decreases liabilities whenever the company makes a payment or provides services to the creditor. The company increases liabilities whenever additional obligations arise.

Usually through a loan arrangement or contract, a creditor is a person or organisation that lends credit to another party so they can borrow money. Creditors can be categorised as personal or real.

Personal creditors may include people who lend money to friends, relatives, or a company that offers quick supplies or services to a business or person but permits a payment delay.

Real creditors are financial institutions or banks having legal agreements and loan arrangements with borrowers that provide the lender the power to seize any of the debtor's real property or collateral if the loan is not repaid.

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The correct question is:

Which of the following describe the factors that determine the amounts reported for a liability?

Initially, the company records each liability at the amount of cash a creditor would accept to settle the liability immediately after a transaction or event creates the liability.

The company decreases liabilities whenever the company makes a payment or provides services to the creditor.

The company increases liabilities whenever additional obligations arise.

The initial amount of the liability includes any interest charges relating to the liability.

The correct answer is options are A, B, C, and D. All of these factors determine the amounts reported for a liability. The agreement with creditors outlines the terms and conditions of the liability, such as the amount of principal, interest rate, and repayment schedule.

The amount of the liability and when it was payable are determined by previous transactions. Future cash flows are crucial to take into account because they have an impact on the company's capacity to pay back its debt.

And finally, it's critical to consider the company's financial standing at the time of the liability because it may have an impact on the amount of interest that needs to be paid. Consequently, when estimating a liability, each of these elements must be considered.

Complete Question:

Which of the following describe the factors that determine the amounts reported for a liability?

(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A. Agreement with creditors ?

B. Past transactions ?

C. Future cash flows ?

D. Financial position of the company ?

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SWOT analysis is a strategic planning tool that offers various benefits, but cost reduction is not one of them. Its simplicity and structured nature ensure that data and information are accurately categorized, making it user-friendly and organized.

The clear categorization of strengths, weaknesses, opportunities, and threats enables efficient analysis and synthesis of diverse information, promoting informed decision-making.

Additionally, SWOT analysis fosters managerial collaboration by encouraging the sharing of ideas and insights among team members.

This collaborative approach leads to a more comprehensive understanding of the organization's situation, helping to formulate effective strategies. However, it is important to note that the primary goal of SWOT analysis is to assess and plan, not to directly reduce costs

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If a shock increases the costs of production, it will likely cause a decrease in output and employment, resulting in higher unemployment rates. If the central bank wants to return the unemployment rate to its previous level, it can adjust the rate at which the money supply increases.

If the central bank chooses to increase the rate at which the money supply increases, this will increase inflation rates, making it higher than its previous rate. On the other hand, if the central bank chooses to decrease the rate at which the money supply increases, it will lower inflation rates, but this may also result in a slower economic recovery.

Therefore, the best option would be to increase the rate at which the money supply increases while also monitoring and controlling inflation rates. This will help to move inflation closer to its previous rate while also promoting economic growth and job creation. It's important to note that the central bank must balance its efforts to reduce unemployment with its responsibility to maintain stable prices and prevent inflation from spiraling out of control.

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The given  statement is "True".

Buying a larger quantity than needed to get a price break can cause additional problems such as storage issues, expiration dates, and tying up cash flow.

Therefore, it is important to do this with caution and to carefully consider the potential consequences before making a bulk purchase.

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The allocated cost of the land is $205,335, the allocated cost of land improvements is $41,067, and allocated cost of the building is $164,823.

Allocated cost refers to the process of assigning indirect costs to a product or service based on a chosen allocation method. Indirect costs are those that cannot be directly attributed to a particular product or service, such as rent, utilities, or administrative expenses. To allocate these costs, a business will use allocation methods such as activity-based costing, direct labor hours, or machine hours. These methods determine how much of the indirect cost should be assigned to each product or service based on the level of resources they consume. Allocated costs are important for businesses to accurately determine the true cost of producing their products or services. By assigning indirect costs to specific products, a business can understand the profitability of each product and make informed decisions about pricing and production levels.

Land: $260,000 / ($260,000 + $52,000 + $208,000) = 60%

Land improvements: $52,000 / ($260,000 + $52,000 + $208,000) = 12%

Building: $208,000 / ($260,000 + $52,000 + $208,000) = 48%

Land: 0.60 * $342,225 = $205,335

Land improvements: 0.12 * $342,225 = $41,067

Building: 0.48 * $342,225 = $164,823

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If Stock A's beta were 2.1, its new required rate of return would be 13.5% (rounded)

To calculate Stock A's beta, we will use the Capital Asset Pricing Model (CAPM) formula:

rA = rRF + βA * (rM - rRF)

Where rA is the required rate of return for Stock A, rRF is the risk-free rate, βA is the beta of Stock A, and rM is the market return.

We are given rRF = 3%, rM = 8%, and rA = 11%.

We need to solve for βA. 11% = 3% + βA * (8% - 3%) 11% - 3% = βA * 5% 8% = βA * 5%

Now we can solve for βA:

βA = 8% / 5% = 1.6

Stock A's beta is 1.6 (rounded to one decimal place).

If Stock A's beta were 2.1, we can calculate its new required rate of return using the CAPM formula:

rA_new = rRF + βA_new * (rM - rRF)

rA_new = 3% + 2.1 * (8% - 3%)

rA_new = 3% + 2.1 * 5%

rA_new = 3% + 10.5%

rA_new = 13.5%

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Measurement of the economic effects on an entity involves each of the following except D) recording the economic effects in the financial statements.

While the measurement of the economic effects on an entity involves quantification of effects, identification of the attribute to be measured, and selection of an appropriate unit of measure, recording the economic effects in the financial statements is not part of the measurement process itself, but rather a separate step in the overall financial reporting process.

Financial statements are written records that tell about the business activities and the performance of a company. Financial statements are mostly audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.

Therefore, option (D) is the correct answer.

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This means that for every dollar of assets invested, Mechforce Manufacturing earned a profit of 4.2 cents.

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The market price of Max and Ruby Cat Food, Inc. zero-coupon bonds is $236.74. The calculation involves discounting the $1,000 face value at the market yield rate of 9% for 20 years.

The market price of the bonds can be calculated as follows:

Market price = Face value / (1 + Yield to maturity)^n

where n is the number of years until maturity.

In this case, the zero coupon bonds mature in 20 years, so n = 20. The yield to maturity is 9%, which can be expressed as 0.09. Therefore, the market price of the bonds is:

Market price = [tex]1000 / (1 + 0.09)^20[/tex]

Market price = $236.74

So, the market price of the zero coupon bonds is $236.74.

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Product differentiation refers to the process of distinguishing a product or service from others by highlighting its unique features or benefits, which sets it apart from competitors.

(a) Product differentiation refers to the process of creating a unique product or service that stands out from competitors in the marketplace. This can be achieved through various means, such as offering superior quality, innovative features, or a distinctive brand image.

(b) Mark-up refers to the amount added to the cost of a product or service to determine its selling price. This is typically expressed as a percentage and is used to cover expenses and generate a profit for the business.

(c) Excessive capacity refers to a situation where a business has more production capacity than it needs to meet current demand. This can result in inefficient use of resources, increased costs, and reduced profitability.

(d) Efficiency scale refers to the concept that as a business grows and increases production volume, it can achieve economies of scale that lead to lower per-unit costs and increased profitability.

(e) Brand names are the names given to specific products or services that are associated with a particular company or brand. Brand names can help differentiate products from competitors, create customer loyalty, and increase brand recognition and value.

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South Shore Construction has been in the business of building permanent docks and seawalls for five years along the southern shore of Long Island, New York. The revenue of the company has increased from $308,000 in the first year of operation to $1,084,000 in the most recent year. The quarterly sales revenue in thousands of dollars has been provided and can be referred to from the datafile.

The given data shows that the revenue has been increasing each year. The quarterly sales revenue has also been increasing with some fluctuations. To understand the pattern in the data, we need to choose the correct time series plot.

There are four options available, and we need to select the correct one. Once we have the correct plot, we can analyze the pattern in the data.

As the options for the time series plot are not given, we cannot choose the correct one. However, we can say that the correct time series plot should show the trend in the data, along with any seasonal fluctuations.

To account for the seasonal effects in the data, we can use a multiple regression model with dummy variables. This model will help us develop an equation that considers the seasonal effects in the data. The equation can be used to forecast the revenue for future quarters.

In this equation, we can use dummy variables to represent each quarter of the year. For example, we can use a value of 1 to represent the first quarter and a value of 0 for the remaining three quarters. Similarly, we can use a value of 1 for the second quarter and 0 for the remaining quarters, and so on.

By using this model, we can account for any seasonal effects in the data and develop a more accurate forecast for future quarters. This will help South Shore Construction to make better business decisions and plan their operations accordingly.

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The given statement to convert an annual interest rate into the "compounding period interest rate", a company divides that annual interest by the number of compounding periods per year is true because the compounding period interest rate is the interest rate earned or charged for each compounding period.

The compounding period interest rate is the interest rate that applies to each compounding period within a year, rather than the annual interest rate.

For example, if the annual interest rate is 10% and the compounding period is monthly, then the compounding period interest rate is calculated by dividing the annual rate by 12 (the number of months in a year). Therefore, the compounding period interest rate would be approximately 0.83% per month.

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The given statement, "you would be certain that your real wage had decreased." is correct because a menu cost problem refers to the cost of changing prices and is not relevant to this scenario.

A menu cost problem refers to the cost that firms incur when they change the prices of their products or services. These costs can include the cost of updating price lists, reprinting menus, and informing customers of the new prices.

In the context of the scenario given, the information about the 5% increase in nominal wages and 7% increase in the overall price level does not provide enough information to determine whether there is a menu cost problem.

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The kind of finance you are referring to is known as "foreign aid" or "development assistance."

This type of financial assistance is typically provided by developed countries or international organizations to support the economic growth and development of less developed nations.

The aid can take the form of grants, loans, or technical assistance, and is often aimed at improving access to education, healthcare, infrastructure, and other basic needs.

The loans are usually provided at very low interest rates or with flexible repayment terms to ensure that the recipient country can use the funds effectively and repay them over time. The goal of foreign aid is to help reduce poverty, promote sustainable economic growth, and improve living conditions in the recipient countries.

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Employee privacy protection from the use of regular or random drug or alcohol tests in the workplace is primarily governed by federal statute is  True.

In the United States, two main federal laws provide guidance on this issue: the Fourth Amendment of the U.S. Constitution and the Drug-Free Workplace Act of 1988.

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Both harp and sofa productions will rely on market exchange because there is more than one input involved in each.

This is because market exchange involves buying and selling goods and services between multiple firms or individuals. In the case of sofa and harp production, there are multiple inputs required for each product, which means that firms producing these goods will likely rely on market exchange to acquire the necessary inputs from other firms or individuals. The option of using a hierarchy of firms (either the sofa or harp producing firm buying the other) is not feasible or practical given the differing number of inputs required for each product.

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High wages in the contemporary industry may cause emigration and a labour crunch in the traditional sector, which would have an impact on overall economic growth.

A breakdown in coordination between the two sectors may result from the relatively high wages in the modern economy. Due to reasons like increased productivity and technological innovation, the contemporary sector often pays higher wages. This may draw workers away from the traditional sector, which could result in a labour shortage there and have an impact on output and production. Due to the conventional sector's potential inability to provide enough output to fulfil demand, this shortage may lead to a breakdown in coordination between the two sectors. In turn, this can result in increased pricing for items made by the conventional sector, lowering their ability to compete in the market. Because of this, the conventional industry can see weaker demand and be compelled to reduce salaries, aggravating the a lack of workers.

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No, It's definitely not rude at all and you should feel free to be open about your other company know that you have an offer in hand to recruiter.

The whole process of finding, sourcing, screening, shortlisting, and interviewing applicants for positions (either permanent or temporary) inside an organisation is known as recruitment. The process of selecting people for unpaid employment is called recruitment.

Recruiting may be handled by managers, human resource generalists, and recruiting experts, but in certain instances, public employment, for-profit recruitment agencies, or specialised search consultancies are utilised to handle specific elements of the process. Artificial intelligence (AI) is increasingly often used in web-based solutions that improve all facets of recruiting.

Recruiting is the process of using one or more tactics to find and recruit people to fill open positions. It might entail both internal and external recruitment advertising, using the right channels like job portals, regional or national newspapers, social media, business media, specialist recruitment media, professional publications, window advertisements, job centres, career fairs, or in a variety of ways online.

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With the increase in trade in the service sector, the Uruguay round sought to establish agreements to cover this area.

The GATT (General Agreement on Tariffs and Trade) was an international agreement that initially dealt with trade in manufactured goods and commodities.

As trade in services (such as banking, healthcare, and tourism) became increasingly important, the Uruguay Round of trade negotiations sought to establish rules to cover this area. The result was the General Agreement on Trade in Services (GATS), which is an international agreement that covers a wide range of services sectors.

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Based on the mentioned informations, Weber Enterprises should recognize a salvage value of $4,000 in 2020.

The double declining balance method uses a depreciation rate that is twice the straight-line rate. The formula for calculating depreciation using this method is:

Depreciation Expense = Beginning Book Value x Depreciation Rate

To calculate the depreciation rate, we need to first calculate the asset's depreciable base, which is its cost minus its salvage value. In this case:

Depreciable Base = Cost – Salvage Value

Depreciable Base = $300,000 – $20,000

Depreciable Base = $280,000

The straight-line rate is 1/5, or 20%, since the asset has a five-year useful life. The double declining balance rate is twice that, or 40%.

In 2020, the asset will have been depreciated for 4 years. The beginning book value for 2020 can be calculated as follows:

Beginning Book Value = Cost – Accumulated Depreciation

Beginning Book Value = $300,000 – (Depreciation Expense x 3)

To find the accumulated depreciation after 3 years, we can use the double declining balance method:

Year 1 Depreciation Expense = $300,000 x 40% = $120,000

Year 2 Depreciation Expense = ($300,000 - $120,000) x 40% = $72,000

Year 3 Depreciation Expense = ($180,000 - $72,000) x 40% = $43,200

Accumulated Depreciation after 3 years = $120,000 + $72,000 + $43,200 = $235,200

Therefore, the Beginning Book Value for 2020 is:

Beginning Book Value = $300,000 – $235,200 = $64,800

Since the salvage value is expected to be $20,000 at the end of the asset's useful life, and 4/5 of the useful life has already passed, the salvage value at the end of 2020 would be:

Salvage Value at the end of 2020 = $20,000 x (1 – 4/5) = $4,000

Therefore, Weber Enterprises should recognize a salvage value of $4,000 in 2020.

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Weber Enterprises should recognize a salvage value of $4,000 in 2020.

The double declining balance method uses a depreciation rate that is twice the straight-line rate. The formula for calculating depreciation using this method is:

Depreciation Expense = Beginning Book Value x Depreciation Rate

To calculate the depreciation rate, we need to first calculate the asset's depreciable base, which is its cost minus its salvage value. In this case:

Depreciable Base = Cost – Salvage Value

Depreciable Base = $300,000 – $20,000

Depreciable Base = $280,000

The straight-line rate is 1/5, or 20%, since the asset has a five-year useful life. The double declining balance rate is twice that, or 40%.

In 2020, the asset will have been depreciated for 4 years. The beginning book value for 2020 can be calculated as follows:

Beginning Book Value = Cost – Accumulated Depreciation

Beginning Book Value = $300,000 – (Depreciation Expense x 3)

To find the accumulated depreciation after 3 years, we can use the double declining balance method:

Year 1 Depreciation Expense = $300,000 x 40% = $120,000

Year 2 Depreciation Expense = ($300,000 - $120,000) x 40% = $72,000

Year 3 Depreciation Expense = ($180,000 - $72,000) x 40% = $43,200

Accumulated Depreciation after 3 years = $120,000 + $72,000 + $43,200 = $235,200

Therefore, the Beginning Book Value for 2020 is:

Beginning Book Value = $300,000 – $235,200 = $64,800

Since the salvage value is expected to be $20,000 at the end of the asset's useful life, and 4/5 of the useful life has already passed, the salvage value at the end of 2020 would be:

Salvage Value at the end of 2020 = $20,000 x (1 – 4/5) = $4,000

Therefore, Weber Enterprises should recognize a salvage value of $4,000 in 2020.

Learn more about straight-line depreciation :

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