Since long-term interest rates are usually higher than short-term interest rates, the standard yield curve is ____

On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $31,000. A total of $2,800 was paid

spayn [35]

Answer:

the amount of depreciation for Year 1 is $3,948

Explanation:

Step 1 : Determine Cost of Equipment

<em>Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.</em>

Purchase Price $31,000

Installation and testing $2,800

Total Cost $ 33,800

Step 2 : Determine the depletion rate

Depletion rate = (Cost - Salvage Value) ÷ Estimated Production

= ($ 33,800 - $5,600) ÷ 100,000 units

= 0.282

Step 3 : Determine the Depreciation Expense

Depreciation Expense = Depletion rate x Units Produced

= 0.282 x 14,000 units

= $3,948

Conclusion

the amount of depreciation for Year 1 is $3,948

7 0

3 years ago

Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature

Fantom [35]

Answer:

Most Solutions, Inc.

Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:

Operating activities:

Interest payments -$50.4 million

Financing activities:

Bonds issue $375,505,452

Explanation:

a) Data and Calculations:

January 1, 2021:

Face value of bonds issued = $420 million

Maturity period of bonds = 10 years (2031)

Coupon interest rate = 12%

Market yield = 14%

Payment of interest expense = semiannually (June 30 and December 31)

Debit Cash (price) 375,505,452

Debit Discount on bonds (difference) 44,494,548

Credit Bonds payable (face amount) 420,000,000

To record the bonds proceeds and discount.

Cash payments for Bonds Interests:

June 30 $25.2 million

December 31 $25.2 million

3 0

3 years ago

The discounted cash inflows of a project minus the discounted cash outflows is referred to as the _____.

Ira Lisetskai [31]

<span>The answer is net present value. It is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to examine the effectiveness of a projected investment or project. A net present value that is positive stipulates that the projected earnings produced by a project or investment surpasses the anticipated costs. In general, an investment with a positive NPV will be a profitable one and the one with a negative NPV will result in a net loss. </span>

5 0

3 years ago

The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot act

kykrilka [37]

Answer:

Yes, Omaha department store would be better off by $23000.

Explanation:

Given: Sales revenue= $350000.

Cost of goods sold= $280000.

Sales commission= $30000.

Fixed operating cost= $90000.

Now, computing net profit or (loss)

Net profit/loss= $\textrm{sales revenue - cost of goods sold- sales\ commission - Avoidable fixed\ operating\ costs}$

∴ Net profit/loss= $350000-280000-30000-(90000\times 70\%)$

⇒ Net profit/loss= $40000-(63000)= (\$ 23000)$

∴ Net loss= $\$ 23000$

∴ Yes boot department should be closed, as Omaha department store is better off by $23000.

7 0

4 years ago

Olivia is the owner of an interior designing firm. She has a tight-knit group of designers working for her. The designers have d

nignag [31]

Answer:

C. deep-level diversity

Explanation:

Deep-level diversity is a type of diversity among individuals that is not easily observable, and includes traits such as working styles, values, beliefs, cognitive, or decision-making styles. These are usually psychological. These traits are less observable.

According to the information given in the question above about the Olivia and her employees, we can infer that Olivia and her employee display deep-level diversity, as the designers have traits that are not easily observable such as the different working styles they have while they still work effectively together as a team.

8 0

3 years ago

Since long-term interest rates are usually higher than short-term interest rates, the standard yield curve is _____.