If you need to indicate the missing ammount of each letter in the grahp then it will be like follows:
For the first case:
A = $9,600 + $5,000 + $8,000 = $22,600$22,600 + $1,000 – B = $17,000
B = $22,600 + $1,000 – $17,000 = $6,600$17,000 + C = $20,000
C = $20,000 – $17,000 = $3,000
D = $20,000 – $3,400 = $16,600
<span>E = ($24,500 – $2,500) – $16,600 = $5,400
</span><span>F = $5,400 – $2,500 = $2,900
</span>And now for the second case:
G + $8,000 + $4,000 = $16,000
G = $16,000 – $8,000 – $4,000 = $4,000$16,000 + H – $3,000 = $22,000
H = $22,000 + $3,000 – $16,000 = $9,000(I – $1,400) – K = $7,000(I – $1,400) – $22,800 = $7,000
<span>I = $1,400 + $22,800 + $7,000 = $31,200
</span>J = $22,000 + $3,300 = $25,300
K = $25,300 – $2,500 = $22,800$7,000 – L = $5,000
<span>L = $2,000</span>
The balance in the Accumulated Depreciation account represents the amount to be deducted from the cost of the plant asset to arrive at its fair market value.
Answer:
warrrents are more desirable than convertible securities for creating new common stock.
Explanation:
The exercise of a warrant changes the capital structure of the company by reducing the degree of leverage by virtue of the issuance of new common shares without the debt experiencing any change. If a bond is converted, the decrease in the level of leverage would be even more pronounced, as common shares would be issued in exchange for a reduction in debt. In addition, the exercise of a warrant represents a new capital inflow; With convertible securities, new capital is captured when they are originally issued and not when they are converted. The entry of new contribution capital resulting from the exercise of a warrant does not occur until the company has achieved a certain degree of success, which is reflected in a higher price of its shares.
Hope this helps!
Answer:
a) $ 63,000.
b) $ 0.063 per copy produced.
c) $19,845.
Explanation:
<u>A : Determining the depreciable Cost.</u>
<u>T</u>he depreciable Cost = Acquisition cost - Salvage/Residual Value
<u>T</u>he depreciable Cost = $72,000 - $9,000
<u>T</u>he depreciable Cost = $ 63,000.
<u>B: Determining the depreciation rate.</u>
The depreciation rate = Depreciable cost/Total no. of units produced during useful life
The depreciation rate = $ 63,000/1,000,000
The depreciation rate = $ 0.063 per copy produced.
<u>B: Determining the units-of-output depreciation for the year.</u>
The units-of-output depreciation for the year = depreciation rate × the number of units produced for the year.
The units-of-output depreciation for the year = 0.063 × 315,000
The units-of-output depreciation for the year = $19,845.
