Answer:
The payback period for the new machine is 6 years.
Explanation:
depreciation = $1,500,000/10
= $150,000
payback period = ($100,000 + $150,000)/$1,500,000
= 6 years
Therefore, The payback period for the new machine is 6 years.
Answer:
This cannot be solved. There isn't a number at the beginning.
Explanation:
The entry needed to close the dividend account is "Debit: Retained earnings $35,000 and credit: dividend expense $35,000" based on the journal transaction. The dividend is a portion of a company's earnings which be shared by the company to the investor as the return for their investment. This entry will decrease the retained earning balance.
Answer:
3,220 units
Explanation:
The computation of the material quantity variance is shown below:
Direct material quantity variance = Standard Price × (Standard Quantity - Actual Quantity)
$750 = 2 gallons × $12.50 × (6,500 gallons ÷ 2 - actual quantity)
$750 = $25 × (6,500 gallons ÷ 2 - actual quantity)
$30 = 3,250 - actual quantity
So, the actual quantity would be
= 3,250 - $30
= 3,220 units
The Standard Price is computed below:
= 2 gallons × $12.50
The standard quantity is computed below:
= 6,500 gallons ÷ 2
= 3,250 units
Answer:
SEP IRA
Explanation:
A SEP IRA means , a Simplified Employee Pension IRA, which is easier to set up and administrate than most other pension plans.
The Simplified Employee Pension IRA allows the employer to make a deductible contribution of a maximum of 25% of an employee's income (20% effective rate), capped at $54,000 in 2017.
The Simplified Employee Pension IRA has a key advantage which is that, it allows the employer to vary the contribution percentage each year .
In this case, a smaller business should make use of Simplified Employee Pension IRA, because it is easier to set up and have other benefits that are okay for such type of business.
