BoTeck is a full-service technology company. It provides equipment, installation services, and training services. Customers can purchase any product or service separately or as a bundled package. On May 3, Box-Rite Corporation purchased computer equipment, installation, and training for a total cost of $120,000. Estimated stand-alone fair values of the equipment, installation, and training are
$75,000, $50,000, and $25,000 respectively. The transaction price allocated to equipment, installation and training is
A) $75,000, $50,000, and $25,000 respectively.
B) $60,000, $40,000 and $20,000 respectively.
C) $40,000, $40,000, and $40,000 respectively.
D) $120,000 for the entire bundle.
B
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Answer the following statement true (T) or false (F)
The Internal rate of Return (IRR) in cell B9 will be ___________ the Required Return in B7.
a) less than
b) equal to
c) greater than
d) Could be any of the above
e) None of the above
Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly canceled because of concern over a terrorist attack. Harry is
a. obligated to pay the $100. b. not obligated to pay under the commercial impracticability doctrine. c. not obligated to pay under the force majeure doctrine. d. not obligated to pay under the frustration of purpose doctrine.
Which of the following is true of program rating?
A. It is the total number of households in the area that subscribe to cable television as opposed to network television. B. It is the percentage of homes in a given area where TV is being watched during a specific time period. C. It represents a total percentage of the population that is tuned to a particular reality television program. D. It is the percentage of TV households in an area that are tuned to a specific program during a specific time period. E. It represents 1 percent of all the television households in a particular area tuned to a specific program.