Answer:
The Annual payment to be made is $445,327
Explanation:
The computation of the annual payment is shown below;
As we know that
The Present value of assets = Annual payment to be made × Present value annuity factor (i%,n)
$2,400,000 = Annual payment to be made × Present value annuity factor (7%,7)
$2,400,000 = Annual payment to be made × 5.3893
So,
The Annual payment to be made is $445,327
Answer:
the depreciation base of this asset is $161,500
Explanation:
Depreciation Base is the Value that is divided y the useful life to obtain the depreciation charge of an asset.
Depreciation Charge under straight line method is calculated as :
Depreciation = (Cost - Salvage Value)/Number of Useful Life
Therefore depreciation base of this asset is $175700 - $14200 = $161,500
Answer:
Option (B) is correct.
Explanation:
Given that,
Standard Price = $5
Direct material (Actual Price) = $4.9
Actual Quantity Purchased = 28,900
Materials price variance for January:
= (Standard Price - Actual Price) × Actual Quantity Purchased
= ($5 - $4.9) × 28,900
= $2,890 (Favorable)
Therefore, the materials price variance for January is $2,890 Favorable.
Answer:
d
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
If the LIFO method is used, the goods sold would be the more expensive ones while the ending inventory would consist of older inventories that are cheaper
For example, the following inventory were bought :
Jan 1 5 units of metals at $200
Jan 2 5 units of metals at $250
5 units are sold
If the LIFO method is used, the ending inventory would be the 5 units of metals purchased in jan 1 at $200
