On january 3, 2009, acme corp. owned a machine that had cost $300,000. the accumulated depreciation was $180,000, estimated salvage value was $18,000, and fair market value was $480,000. on january 4, 2009, this machine was irreparably damaged by reed corp. and became worthless. in october 2009, a court awarded damages of $480,000 against reed in favor of acme. at december 31, 2009, the final outcome of this case was awaiting appeal and was, therefore, uncertain. however, in the opinion of acme's attorney, reed's appeal will be denied. as of december 31, 2009, do we have a loss contingency, a gain contingency, or both? how should this be accounted for in the financial statements? be sure to use the requirements of codification section 450 (fasb 5) to explain your answer.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

Why should managers invest any excess cash