Answer:
A. Dr Loss from Impaired Goodwill $3,867,800
Cr Goodwill $3,867,800
B. Dr Amortization Expense—Patents $27, 000
Cr Patents $27,000
Explanation:
a. Preparation of the adjusting entry on December 31 for the impaired goodwill
Dec. 31
Dr Loss from Impaired Goodwill $3,867,800
Cr Goodwill $3,867,800
(To reocord Impaired goodwill)
b.Preparation of the adjusting entry on December 31 for the amortization of the patent rights.
Dec. 31
Dr Amortization Expense—Patents $27, 000
Cr Patents $27,000
[($468,000 ÷ 13) × 9/12]
(To record Amortized patent rights)
Required: Journal entry Received Rs.18,000 from debtors and discount allowed him Rs. 2,000. please help.
Answer:
If there was a discount allowed of Rs. 2,000 then it means that the total amount the debtor was owing was:
= Cash paid by debtor + Discount allowed
= 18,000 + 2,000
= Rs. 20,000
Journal entry is therefore:
Date Account Title Debit Credit
XX-XX-XXXX Cash $18,000
Discount allowed $ 2,000
Accounts Receivable $20,000
In preparing its bank reconciliation for the month of April 2018, Crane, Inc. has available the following information. Balance per bank statement, 4/30/18 $78200 NSF check returned with 4/30/18 bank statement 950 Deposits in transit, 4/30/18 9600 Outstanding checks, 4/30/18 10300 Bank service charges for April 50 What should be the adjusted cash balance at April 30, 2018
Answer:
the adjusted cash balance is $77,500
Explanation:
The computation of the adjusted cash balance is shown below:
Adjusted cash balance = balance pler bank statement + deposit in transit - outstanding checks
= $78,200 + 9,600 - 10,300
= $77,500
Hence, the adjusted cash balance is $77,500
The same should be considered and relevant
Cardinal Company manufactures vitamin capsules. For the month of June, Cardinal's encapsulating department had 18,000 tons in beginning inventory (with transferred-in costs of $4,400) and 81,000 tons completed inventory during the month. Further, the mixing department completed and transferred out 72,000 tons at a cost of $22,300 in June. Calculate unit cost for the transferred-in category. (Note: Round answer to two decimal places.)
Answer: $0.30 per unit
Explanation:
The unit cost for the transferred-in category is calculated as:
= (Transfer cost of beginning inventory + transfer cost of transferred out inventory) / (Beginning inventory + Inventory transferred out)
= (4,400 + 22,300) / (18,000 + 72,000)
= 26,700 / 90,000
= 0.2967
= $0.30 per unit
Solaris Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a solar-powered car. This gave Solaris Autos controlling interests in the start-up company. However, Solaris Autos had no obligations to make continued investments in the experiments of the start-up company. It could invest small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Solaris Autos would have the right to buy out the start-up company. This approach to strategic alliance is referred to as
Answer:
real-options perspective
Explanation:
From the question we are informed about Solaris Autos Inc., which is a large automobile company, made an initial small investment in a start-up company that was developing a solar-powered car. This gave Solaris Autos controlling interests in the start-up company. However, Solaris Autos had no obligations to make continued investments in the experiments of the start-up company. It could invest small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Solaris Autos would have the right to buy out the start-up company. This approach to strategic alliance is referred to as real-options perspective. A real option can be regarded as an approach that bestow management of a firm the right, so that they can undertake certain business opportunities as well as an investments. Real option can be regarded as projects that contains tangible assets versus financial instruments. Real options could involves decision to expand as well as decision to defer project entirely.
General Snacks is a typical firm in a market characterized by the model of monopolistic competition. Initially, the market is initially in long-run equilibrium, and then there is an increase in demand for snacks. We expect that: Group of answer choices in the long run, new firms will enter the market. there will be a short-run increase in the number of firms, but in the long run the number of firms will return to the original level. firms will leave the market in the long run. firms will shut down, but they will not leave the industry in the long run.
Answer:
Firms will leave the market in the long run.
Explanation:
Firms will leave the market in the long run.
Generally, the new firms enters in the market because the incumbent firms makes super normal profit. So in the long run, the continuous entry of firms will make the profit zero. Thus, when there is zero profit in the long run then the firms will start leaving the market and the demand for remaining firms will start rising because when firms start leaving the market then supply falls.
1. If average fixed cost is 40 and average variable cost is 80 for a given output, we then know that average total cost is
Answer:
120
Explanation:
Average total cost = average fixed cost + average variable cost
average fixed cost = Total fixed cost / quantity
40 + 80 = 120
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
average variable cost = total variable cost / quantity
Variable costs are costs that vary with production. Hourly wage costs and payments for production inputs are examples of variable costs
Bardwell Manufacturing, Inc. began 15 years ago. The two co-owners now earn $300,000 per year each. Four supervisors earn $40,000 each annually and have been with the company for 10 to 11 years. Fifteen line employees earn a total of $300,000 and have been with the company from 2 months to 5 years. All employees are over age 21. The co-owners want to install a 15% money purchase plan and structure the plan in a way that maximizes their plan contributions. Which vesting schedule would be most appropriate for Bardwell
Answer:
3 year cliff
Explanation:
The most appropriate vesting schedule for Bardwell Manufacturing Inc is the 3 year cliff
"I don't know, but I'll find out" is a customer service example of…
B a dangerous admission.
C losing a sale.
D magic words.
A(Not the answer) an uninformed sales rep.
Answer:
C. losing a sale.
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction.
Simply stated, it's a strategic process which typically involves collecting customer information for the purpose of improving a customer's future experience.
Therefore, this set of employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
A salesperson can be defined as an individual or employee who is saddled with the responsibility of taking orders from customers, as well as sales of finished goods and services to consumers or end users.
A lost sale can be defined as a situation in which a salesperson or business firm looses a selling opportunity for a variety of reasons such as going out of stock, unavailability of a brand (product line), lack of product knowledge, etc.
This ultimately implies that, a process in which a salesperson looses a sales opportunity due to one reason or the other is referred to as losing a sale.
Hence, "I don't know, but I'll find out" is a customer service example of losing a sales because the customer (buyer) may not be patient enough to get the feedback while others might walk away immediately in search of the product or service elsewhere.
Answer:
It is magic words
Explanation:
I took the test got it right
When a transfer has no effect on fixed costs, to be acceptable to the selling division, the transfer price must ______. Multiple select question. cover any opportunity cost from lost sales cover a reasonable portion of the selling division's fixed costs cover any lost contribution margin due to the transfer equal the product's normal selling price cover the variable costs per unit
Answer:
• cover any opportunity cost from lost sales
• cover any lost contribution margin due to the transfer
• cover the variable costs per unit
Explanation:
A transfer is done from one division in a company to another.
When such is done, the transfer price should cover any opportunity costs that the division doing the transferring would be incurring to do so that way they would not make an economic loss.
Lost contribution margin should be covered as well for the same reason which is avoidance of cost.
Variable costs have to at least be covered so that the division does not make an accounting loss.
The formula for the production budget is budgeted sales in units plus desired ending merchandise inventory less beginning merchandise inventory. beginning finished goods units less desired ending finished goods units. desired ending direct materials units less beginning direct materials units. desired ending finished goods units less beginning finished goods units.
Answer:
desired ending finished goods units less beginning finished goods units.
Explanation:
production budget can be regarded as budget that gives the calculation of the number of units of particular products which is needed to be manufactured, this is comprises the sales forecast as well as amount of finished goods inventory that is planned to have on hand.
It should be noted that the formula for the production budget is desired ending finished goods units less beginning finished goods units..
It's very urgent
which of the following statements about corporation is true
1) they are more common then partnerships in the U.S.
2) they are the most inexpensive form of business to start.
3) they are very easy to start
4) all business debts are the personal responsibility of the owners
Answer: While not usual they can be held responsible for all business debts.
Explanation: If you pledge a asset as a collateral a creditor may be able to take said asset and sell it.
Andrea, a sales associate in the fine china department of the David's Department Store, reports to Chris, the home furnishings department manager. This morning, Chris asked Andrea to change the price tags on the crystal wine glasses. While working on this task, Pietro, the bedding department manager, told Andrea that he wanted her to unload some comforters. To solve this conflict, Andrea turns to the principle of unity of command under which Group of answer choices Andrea needs to decide which manager has more power. Andrea can refuse to do both tasks. employees should report to no more than one manager. employees can report to two managers, so Andrea needs to decide whose directions to follow. Andrea will need to determine how she can multitask.
Answer: employee should report to no more than one manager.
Explanation:
Under the principles of war, it should be noted that the unity of command simply means that all the responsibility of all the forces are under one commander. The commanders possesses the authority to direct and control all the forces in order to achieve q common goal.
Therefore, in this scenario, Andrea should report to Chris who is the home furnishings department manager since Chris is his immediate manager as he can only follow the order of one boss.
The government has adopted an emissions tax if it: Group of answer choices specifies the type of catalytic converter that must be used to reduce automobile emissions. pays automobile drivers 10 cents for each 10% reduction in automobile emissions. charges automobile drivers 10 cents for each unit of automobile emissions. transfers the ownership of city air to a private firm that charges automobile drivers a profit-maximizing price, based in part on the pollution capacity of the atmosphere.
Answer:
charges automobile drivers 10 cents for each unit of automobile emissions.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
An emission tax can be defined as tax levied on manufacturers or road users such as drivers for the amount of pollution dispersed into the environment.
Hence, the government has adopted an emissions tax if it charges automobile drivers 10 cents for each unit of automobile emissions.
The ______ inventory system records all inventory-related transactions in the inventory account (e.g. transportation, purchase returns and allowances, purchase returns and allowances, purchase discounts) and reduces inventory at the time of sale. The ______ inventory system uses separate accounts for these items and records cost of goods sold at the end of the accounting period.
Pelican Bay Apartments is a complex consisting of 80 units. The units are available in studio and one-, two-, and three-bedroom apartments. Kimberly Bracco is the property manager of Pelican Bay. She has decided to stay in her condo and not reside at Pelican Bay. She is also pursuing her California real estate license as she manages the property. Is anything wrong with this scenario
Answer:
Yes
Explanation:
According to California law an onsite manager is required for an apartment complex that has more than 16 rental units.
In the given scenario Pelican Bay Apartments is a complex consisting of 80 units. The units are available in studio and one-, two-, and three-bedroom apartments.
Kimberly Bracco is the property manager and has decided to stay in her condo and not reside at Pelican Bay which is off site.
However if she is to be off site then she will need a broker's licence.
please help me with this account question I'm tryna make entries
Answer:
451
Explanation:
430+21
1234567890101112131415
Roger Company sold machinery for a total price of $20,000 to be paid in four equal installments, plus interest. The first payment was made in the current year. The original cost of the machinery was $12,000 and $8,000 of depreciation had been taken on it. Ignoring interest income, what amount of income must Roger Company recognize in the current year under the installment method for this sale
Answer:
$8,000 ordinary income and $2,000 capital gain.
Explanation:
Calculation to determine what amount must Roger recognize in the current year
Since total gain is $16,000 calculated using this formula
Total gain=Selling price-Basis
Total gain=$20,000-$4,000
Total gain=16,000
Which means that he must recognize the complete $8,000 . Hence, the revised gain of $8,000 will be the ORDINARY INCOME in the current year which is calculated as:
Ordinary Income=Selling price-Adjusted basis
Ordinary Income=$20,000-$12,000
Ordinary Income=$8,000
Lastly is to determine The gross profit percentage of which will be applied to each using this formula
Gross profit percentage=Gross profit ÷Contract price
Gross profit percentage=$8,000 ÷ $20,000
Gross profit percentage=40%
Hence, the CAPITAL GAIN for the current year will be:
Capital gain = [($20,000 ÷ 4) × 40%]
Capital gain=$2,000
Therefore the amount that Roger must recognize in the current year is $8,000 ordinary income and $2,000 capital gain.
Smith, an individual calendar-year taxpayer, purchased 100 shares of Core Co. common stock for $15,000 on December 15, Year 1, and an additional 100 shares for $13,000 on December 30, Year 1. On January 3, Year 2, Smith sold the shares purchased on December 15, Year 1, for $13,000. What amount of loss from the sale of Core's stock is deductible on Smith's Year 1 and Year 2 income tax returns
Answer:
Year 1 = $0Year 2 = $0Explanation:
Stock was sold in year 2 so there is no loss that would be deductible from Smith's Year 1 income tax returns.
In year 2, the stock was sold for $13,000 even though it was bought for $15,000. There is therefore a loss of $2,000.
This $2,000 results from a wash sale however so it will not be deductible. A wash sale is used to describe a scenario where stock from one transaction is sold but was the investor buys that same stock in another transaction 30 days before or after they sold the former.
As Smith purchased another $13,000 worth of stock merely 16 days before he sold the first batch, this is a wash sale and its loss is not deductible.
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $212,400 of raw materials on credit; issued materials to production of $207,000 of which $33,600 were indirect. Minstrel incurred a factory payroll of $157,200, of which $43,600 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $16,700 and $29,400 respectively. Compute the cost of jobs transferred to Finished Goods Inventory.
Answer:
$444,700
Explanation:
Use the following formula to calculate the cost of products transferred to finished goods
Cost of products transferred to finished goods = Beginning inventory + direct materials + Direct labor + Applied OH 150% - Ending Inventory
Placing values in the formula
Cost of products transferred to finished goods = 16,700 + ( $207,000 - $33,600 ) + ( $157,200 - $43,600 ) + ( ( $157,200 - $43,600 ) x 150% ) - $29,400
Cost of products transferred to finished goods = 16,700 + 173,400 + 113,600 + 170,400 - $29,400
Cost of products transferred to finished goods = $444,700
Suppose Stan owns a piece of property with a large lake. Initially, Stan and his family were the only people who swam in the lake. Then Stan started selling tickets to people who wanted to go swimming in the lake. When Stan died, he left the lake and the land it was on to the state, stipulating that the lake be left open to the public for swimming. Due to the lake’s remote location, it was never crowded. After Stan died, the lake became a ______ good.
Answer:
public
Explanation:
A public good is a good that is non excludable and non rivalrous.
An individual's access to the pool does not limit another person's access
Also, the pool is free, so it is non excludable
Before his death, the pool was a private good
A private good is a good that is excludable and rivalrous.
outline two benefits to Mohammed's business of all his workers being able to do all of the jobs in the bakery. pls help!
Answer:
1. Saved time
2. Saved cost
Explanation:
If Mohammed owns a bakery where all his workers are able to do all the jobs, he benefits because he would;
1. Save time: Time that would have been spent in outsourcing the job to people who can do them with the accompanying risks of delays and disappointments are bypassed. Time is an essential factor in business because when goods are not available on customer's demand, they might have to seek other options.
2. Save cost: Mohammed will save the additional cost of payments to businesses that do other jobs for him. He saves money when he only has to pay three workers instead of four or more workers. This will mean more profit for his business.
In strategic management, both the short-term and long-term perspectives need to be considered because a. the creative tension between the two forces managers to develop more successful strategy. b. shareholders only care about long-term returns c. shareholder value is only measured by short-term returns. d. long-term vision precludes the analysis of present operating needs.
Answer:
a. the creative tension between the two forces managers to develop more successful strategy.
Explanation:
It is correct to say that short-term and long-term strategies must be designed individually as the creative tension between the two forces managers to develop more successful strategies.
It is essential that in strategic planning the short-term and long-term action plans are well specified, so that the strategic development understands the organizational whole and the strategies are aligned, since the short-term actions will consequently impact those of long term.
Joe has an idea for a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe takes his idea and looks at the people, the offerings, the customers, the value proposition, and his distinctive competencies. Joe is performing a(n) ______
A. business model canvas
B. RBI screen
C. classic feasibility study
D. pilot test
Answer:
C. classic feasibility study
Explanation:
A feasibility study is the study that shows the analysis made for considered the relevant factors for a project. It included the economic, technological, legal in order to ascertain the completion of the project in a successful manner
So as per the given situation, the option c is correct
And, the same is to be considered
5
Select the correct text in the passage.
What is the opportunity cost in this scenario?
Mikael has saved $4,000 for his trip to Brazil. He has calculated that his total transportation expenses will be $1,000. The hotel will cost him
another $1,500. He will spend about $500 on food. He plans on spending the remaining $1,000 for sightseeing and buying souvenirs.
While booking his plane ticket, he realizes that the price has gone up. His total transportation expenses will go up by $200. He realizes that he
cannot cancel his hotel reservation. He also doesn't want to go cheap on food. Finally, he decides to give up visiting the popular Ouro Preto
during his stay in Brazil.
Reset
Next
Answer: sightseeing
Explanation:
Opportunity costs represent to the potential benefits that an economic entity misses out on when another alternative is chosen over another.
In this case, due to the increase in the price of the plane ticket, Mikael decides to give up visiting the popular Ouro Preto during his stay in Brazil even though it was earlier planned. Therefore, it can be infered that sightseeing is the opportunity cost as that is what he forgoes in order to choose a different alternative.
Zoe's Dog Biscuits, inc, has net cash flows from operating activities for the last year of $226 million. The income statement shows that net income in $150 million and depreciation expense is $85 million. During the year, the change in inventory on the balance sheet was an increase of $14 million, change in accrued wages and taxes was an increase of $15 million and change in accounts payable was an increase of $10 million. At the beginning of the year the balance of accounts receivable was $45 million. What was the end of year balance for accounts receivable?
A. $20 million
B. $25 million
C. $45 million
D. $65 million
Answer:
D. $65 million
Explanation:
The computation of the end of year balance for accounts receivable is shown below:
Cash flows from operating activities $226
net income $150
Add: depreciation $85
Less: increase in inventory -$14
Add: increase in wages and taxes $15
Add: increase in account payable $10
Total $246
Change in account receivable -$20
Opening account receivable $45
Ending account receivable $65
During the Great Depression, a. the pineapple industry finally became highly profitable as world demand for fruits rose. b. Latin America developed a mature regional economy, which exported large quantities of manufactured goods and imported most of its foodstuffs and raw materials. c. revolutions occurred all over Latin America. d. Latin American economies boomed, in contrast to those of the United States and Europe. e. domestic instability led to the creation of dictatorships.
Answer:
e. domestic instability led to the creation of dictatorships.
Explanation:
The Great Depression was a period of severe economic meltdown or downturn (crisis) of the industrialized world and it started from the United States of America, typically lasting for about ten years (1929-139).
Basically, the Great Depression started in America on the 4th of September, 1929 as a result of a major fall in the prices of stocks and consequently, leading to a stock market crash on the 29th of October, 1929.
Hence, the negative effects of the Great Depression includes a decline in investments, tax revenues, market price, personal income level, consumer spending, profits and a general rise in unemployment rate.
During the Great Depression, domestic instability led to the creation of dictatorships and autocratic leaderships (government) across many countries.
Generally, dictatorship is characterized by a single leader (dictator) having absolute power and as such he or she makes all the rules, policies and decisions without consulting or taking suggestions from anyone else.
12. One of the seven factors given to help minimize the chances of setting unfair wages and salaries is that a. If wages conform with the law, they are fair wages. b. A fair wage is whatever an employee is willing to accept. c. An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. d. Avoiding the prevailing wage in the industry and community wage level.
Answer:
C. An employers financial capabilites affect what constitutes a fair wage scale for that employers employees
Explanation:
Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that his marginal benefit from an additional soft drink is and his marginal benefit from an additional slice of pizza is . If the price of a soft drink is and the price of a slice of pizza is , is Charley maximizing his total benefits? A. No, he should increase his consumption of both goods. B. No, he should shift consumption toward and away from to maximize total benefits. C. Yes, there is no other consumption choice that will make his total benefits greater. D. No, he should shift consumption toward and away from to maximize total benefits.'
Answer:
The correct option is B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.
Explanation:
Note: This question is not complete because some important figures and points are missing in it. These figures and points are therefore provided to complete the question before answering it as follows:
Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that his marginal benefit from an additional soft drink is $100 and his marginal benefit from an additional slice of pizza is $110. If the price of a soft drink is $2 and the price of a slice of pizza is $3, is Charley maximizing his total benefits?
A. No, he should increase his consumption of both goods.
B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.
C. Yes, there is no other consumption choice that will make his total benefits greater.
D. No, he should shift consumption toward pizza and away from soft drinks to maximize total benefits.'
The explanation of the answer is now provided as follows:
Under utility maximization theory, the condition for the utility or benefit maximization for two goods is as follows:
MBs / Ps = MBp / Pp ……………………………. (1)
Where:
MBs = Marginal benefit from an additional soft drink = $100
MBp = Marginal benefit from an additional slice of pizza =$110
Ps = Price of a soft drink = $2
Pp = Price of a slice of pizza = $3
Subtitling the relevant values, we have:
MBs / Ps = Marginal utility per dollar spent on soft drinks = $100 / $2 = 50
MBp / Pp = Marginal utility per dollar spent on soft pizza = $110 / $3 = 36.67
This implies that 50 = MBs / Ps > MBp / Pp = 36.67
The decision rule is that the limited money income should be spent by a consumer on the good which gives the higher marginal utility per dollar in order to maximize marginal benefit.
Since 50 = MBs / Ps > MBp / Pp = 36.67 above, this implies that Charley is NOT maximizing his total benefits. To maximize his total benefits, Charley should consume more of soft drinks and less of pizza until the condition is consistent with equation (1).
Therefore, the correct option is B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.
Azure, a C corporation, reports the following: Pretax book income is $543,000. Depreciation on the tax return is $20,000 greater than depreciation on the financial statements. Rent income reportable on the tax return is $36,000 greater than rent income per the financial statements. Fines for pollution appear as a $10,000 expense in the financial statements. Interest earned on municipal bonds is $25,000. What is Azure's taxable income
Answer:
Azure's taxable income is $544,000.
Explanation:
This can be calculated as follows:
Taxable income = Pretax book income - Excess depreciation + Prepaid rental income + Fines for pollution - Municipal interest income ………………… (1)
Substituting all the relevant values into equation (1), we have:
Taxable income = $543,000 - $20,000 + $36,000 + $10,000 - $25,000 = $544,000
Therefore, Azure's taxable income is $544,000.
A builder and a wealthy landowner entered into a written contract whereby the builder would build on the grounds of the landowner's estate a mausoleum, using imported Italian granite, to hold the remains of the landowner's recently deceased wife. The cost of the mausoleum was set at $100,000. After the contract was signed but before construction began, the builder learned that an unforeseen embargo prevented him from getting the granite he planned to use to build the mausoleum. He could get the granite from another source, but it would cost an additional $25,000. The builder explained the situation to the landowner, who agreed to pay $125,000 to have the mausoleum built. The builder prepared a writing stating that the price for the mausoleum was now $125,000. Both the builder and the landowner signed the writing. After the work was completed, the landowner gave the builder a certified check for $100,000 and refused to pay one penny more.If the builder brings suit against the landowner to recover the additional $25,000, will the builder likely prevail?A Yes, because the modification was fair and equitable in view of the unanticipated increase in the cost of granite.B Yes, because the later agreement was in writing and signed by the parties.C No, because the builder had a preexisting duty to do the work for $100,000.D No, because the 25% increase in price that the builder was trying to force on the landowner is unconscionable.
Answer:
If the builder brings suit against the landowner to recover the additional $25,000, the builder will likely prevail:
A Yes, because the modification was fair and equitable in view of the unanticipated increase in the cost of granite.
Explanation:
When the parties signed the original contract, the embargo on the importation of granite was not fully anticipated. When the builder brought the modification to the landowner's attention, the landowner did not object. Instead, he gladly and understandably signed the modified terms. It was based on his modified agreement that the builder was able to perform his own side of the contract. Therefore, the landowner should be honorable enough to abide by the modified contract price, which is, overall, not unconscionable.
