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1 year ago

What should the accumulated depreciation equal at the end of the asset's useful life?

1 answer:

8 0

What should the accumulated depreciation equal at the end of the asset's useful life The Balance In Accumulated Depreciation Will Be The Same Amount Under all the depreciation methods.

The depreciation of an asset up to one point in its life is referred to as accumulated depreciation. Since accumulated depreciation is a counter asset account, its natural equilibrium is a credit that lowers the asset's total value. General accepted accounting principles (GAAP) require that expenses be matched to the same accounting period in which the relevant revenue is generated. This is known as the matching principle. A business will depreciate a portion of a capital asset's value over the course of each year of its useful life. This implies that the expense related to using up an asset that has been capitalised is reported every year the asset is put to use and generates income.

Learn more about depreciation here

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Which one of the following statements is correct if a firm has a receivables turnover of 36.5? Group of answer choices It takes

Free_Kalibri [48]

Answer:

The firm collects on its sales in an average of 10 days

Explanation:

if the receivables turnover is 36.5 it means it colect his accounts 36.5 times per year

we can convert this into a days metric:

the days account is outstanding:

365 days per year / we collect 36.5 per year = 10 days to collect an account on average

The acounts are collected every ten days on average.

7 0

2 years ago

The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:

kherson [118]

Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.

Explanation:

Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.

For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .

The present value of both are:

= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²

= $1,486.43 = $8,264.46

Notice the difference. The longer term investment was more exposed to interest rate effects.

8 0

3 years ago

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,

ale4655 [162]

Answer:

I will use the 2020 tax schedule since recovery rebate credit applies to 2020:

Marc and Michelle's gross income = Marc's and Michelle's salaries + interest from corporate bonds = $64,000 + $12,000 + $500 = $76,500

they should choose the standard deduction since it is higher than their itemized deductions = ($24,400)

contribution to IRA = ($2,500)

alimony payment = ($1,500) the divorce agreement was settled on 2005

Marc and Michelle's taxable income = $48,100

Marc and Michelle's tax liability = $1,975 + [12% x ($48,100 - $19,750)] = $5,377

Interests on municipal bonds is not taxable.

The amount of taxes that they owe = $5,377 - $3,500 (federal tax withholdings) = $1,877

Refundable tax credits:

$2,000 in child tax credit

$2,900 in recovery rebate credit

total = $4,900

taxes payable or refund = tax liability - refundable tax credits = $1,877 - $4,900 = -$3,023.

Marc and Michelle should get a refund for $3,023

4 0

2 years ago

Productivity is the

Lunna [17]

Answer:

The correct answer is option a.

Explanation:

Productivity can be defined as a measure of the efficiency of a person, factory, machine, system, etc, to convert inputs into outputs. In other words, it is the rate of output per unit of input.

Productivity is an important determinant of living standards. A higher level of productivity means better living standards. This implies that growth in productivity is the key determinant of growth in living standards.

5 0

3 years ago

You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fixed rate for exactly one year

natita [175]

Answer:

You will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.

Explanation:

you will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.

$20,000 for this purchase at a 5 percent fixed rate

=$20,000*5/100

=$20,000*0.05 = $1,000

=$20,000 + $1,000 = $21,000

Inflation will be 2 percent this year

=$20,000*2/100

=$20,000*0.02 = $400

=$20,000 + ($1,000 - $400)

=$20,000 + $600 = $20,600

3 0

3 years ago