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2 years ago

A property owner installs a new air conditioning system. how does this affect the property's effective age?

1 answer:

6 0

The effect that the newly installed air conditioning system would have on the property's effective age would be: it decreases it.

<h3>What is a Property's Effective Age?</h3>

The effective age of a property can be described as the reflection of the true life of the property that is left remaining, based on the life expectancy that is typical of equipment or buildings that are similar to it and their usage.

So, when a property owner installs a new air conditioning system on a property, the air conditioning system, can cause wear and tear to the property which reduces how long the property can serve its purpose.

Therefore, we can conclude that the effect that the newly installed air conditioning system would have on the property's effective age would be: it decreases it.

Learn more about a Property's Effective Age on:

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A fish cannot survive without water and a profession cannot exist without education. Justify this statement logically.

Misha Larkins [42]

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3 years ago

Consider a project with an initial investment of $30,000, annual revenues of $7000 for the six-year useful life, a salvage value

alexandr402 [8]

Find below attachment

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3 years ago

For the following, mark a "D" if the following account normally has a debit balance and mark a "C" if the following account norm

otez555 [7]

1.Notes Payable D

2. Mortgage Payable D

3. Drawing D

4.Accounts Receivable C

5. Capital C

6. Rent Revenue C

7. Unearned Revenue C

8. Utility Expense D

9. Automobiles

Explanation:

1.Notes Payable D

2. Mortgage Payable D

3. Drawing D

4.Accounts Receivable C

5. Capital C

6. Rent Revenue C

7. Unearned Revenue C

8. Utility Expense D

9. Automobiles

A debit is an accounting entry that may either increases an asset or expense account,
It also decreases a liability or equity account.
A credit is an accounting entry that may either increases a liability or equity account,
It also decreases an asset or expense account.

7 0

3 years ago

Lin is making a presentation about road safety and wants to add images of road signs.

Studentka2010 [4]

Answer:

I dont get what this is asking

Explanation:

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3 0

3 years ago

Lansbury Inc. had the following balance sheet at December 31, 2019.

timofeeve [1]

Answer:

See explanation

Explanation:

Requirement A

See the image Below:

Requirement B

LANSBURY INC.

BALANCE SHEET

As at December 31, 2020

Assets

Cash $37,000

Accounts receivable $41,600

Investment $20,400 (Note - 1)

Plant asset $81,000

Less: Accumulated depreciation ($11,000)

Book value of Plant asset $70,000

Land $53,000

Total assets $222,000

Liabilities and Stockholders' Equity

Liabilities

Accounts payable $30,000

Notes payable $25,000

Total liabilities $55,000

Stockholders' Equity

Common Stock $120,000

Retained earnings $ 47,000 (Note - 2)

Total stockholders' equity = $167,000

Total liabilities & Stockholders' Equity = $222,000

Note - 1:

Sold investment's cost value calculation -

Selling price = $15,000

Less: Gain on sale = ($3,400)

Cost price = $11,600

Investment during 2019 = $32,000

Sale of Investment (book value) $11,600

Remaining value of Investment = $20,400

Note - 2:

Beginning $23,200

Add: Net Income $32,000

Less: Dividend ($8,200)

Ending retained earnings = $47,000

Requirement C

1. Cash flow to net income ratio:

It shows how much cash flows from operating activities during the year over a specific net income.

We know, Cash flow to net income ratio = $\frac{Cash flow from operating activities}{Net Income}$

Cash flow to net income ratio = $\frac{19,200}{32,000}$

Cash flow to net income ratio = 60%

2. Operating cash flow ratio:

It shows how much cash flows from operating activities during the year from the use of current liabilities.

We know, Operating Cash flow ratio = $\frac{Cash flow from operating activities}{Current liabilities}$

Operating Cash flow ratio = $\frac{19,200}{30,000}$

Operating Cash flow ratio = 64%

Note: Here, accounts payable is the only current liabilities as notes payable has a long-term value.

8 0

3 years ago