Answer:
$1,774.2
Explanation:
Compute the accumulated amount in the account on the date of last deposit'
Formula used to find out the future value ordinary annuity is:
Future value factor of ordinary annuity 
1- oily Future value of ordinary annuity 
Where:
R = annual return (ordinary annuity)
= future value of an ordinary annuity of I for n periods at i interest
Substituting the values:
Future value of ordinary annuity
= 
=
Answer:
C. A capital expenditure.
Explanation:
This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.
These types of expenses are capitalized in the balance sheets under the original asset name and the asset is revalued by the improvement cost and stated at net book value + improvement.
Revised depreciation is then calculated on this new NBV as applicable with increased life of asset.
Hope that helps.
Answer:
Expected loss without insurance = $850
Explanation:
Given:
Probability to got injured or killed = 1 / 1000
Law suit average cost = $850,000
Deductible insurance = $100,000
Expected loss without insurance = ?
Computation of Expected loss without insurance:
Expected loss without insurance = Lawsuit average cost × Probability to get injured or killed
Expected loss without insurance = $850,000 × (1 / 1000)
Expected loss without insurance = $850
Answer:
EPS of Plan I = $3.19
EPS of Plan II = $2.82
Explanation:
Under Plan I:
Plan I's Earning per share (EPS) = EBIT ÷ Number of shares = $575,000 ÷ 180,000 = $3.19
Under Plan II:
Interest = $2,600,000 × 8% = $208,000
Earning after Interest = EBIT - Interest = $575,000 - $208,000 = $367,000
Plan II's EPS = $367,000 ÷ 130,000 = $2.82
