Answer:
$69,000
Explanation:
The double-declining method uses twice the rate of the straight-line depreciation method.
In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.
the depreciation rate = 1/5 x 100
=0.2 x 100
=20%
The Depreciation rate for the double-declining method is 40%. The straight-line method considers salvage value at the beginning, but double-declining depreciates until the salvage value.
In the first year under the double-declining method, the depreciation amount was $27,600.
It means 40% of the asset cost is $27,600.
The asset cost is 100%
40%=$27,600
100% = 27,600/40 x 100
=$690 x 100
=$69,000
Asset cost = $69,000
Answer:
Out of the options listed the LEAST important consideration for safeguarding business assets is:
4) geography
Explanation:
Asset protection or safeguarding assets is the practice of covering the assets in case of a law sue, bankruptcy or another event that can generate that the owner of an asset lose them.
For this you must have a clear idea of what an asset is: an asset is a belonging whose ownership is entitled to a person. In this sense, bank accounts, apartments or houses, yates, cars, stocks, bonds are all examples of assets.
Nowadays there are several instruments in order to protect an asset: insurances, putting assets in the name of your spouse or a company. Regardless in the protection measure you use to cover your assets you must have clear, what is the type of asset you want to protect, the monetary value, and the physical size. but geography does not get to be an important consideration when safeguarding them.
Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000
.
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
Complete/Correct Question:
The Bank of England is concerned that the British Pound is weakening against the U.S. Dollar. A method for the Bank of England to strengthen its currency would be to:
A. raise British interest rate levels
B. lower British interest rate levels
C. raise U.S. interest rate levels
D. lower U.S. interest rate levels
Answer:
A, raise British interest rate levels
Explanation:
Increasing the interest rate levels of the British will help strengthen the pound against the Dollar. This would mean that the United States is offering lower interest rate.
This is possible because a higher interest rate means that lenders will make higher returns compared to countries with lower interest rates.
Cheers.
Answer:
$19,525,000
Explanation:
Calculation to determine the free cash flow
Using this formula
Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends
Let plug in the formula
Free cash flow=$155,985,000-$132,295,000-$4,165,000
Free cash flow=$19,525,000
Therefore The Free cash flow is $19,525,000
