Answer:
debt trap
Explanation:
In simple words, debt trap refers to the situation when a company keeps on incurring debt for repaying off the loans taken earlier. It is called trap as the amount of interest on loan keeps on building up making it impossible for the firm to pay it off completely.
Usually the firms starts getting in debt trap when they lack of funds or due to failure of the specific project for which the loans has been taken specifically. Once the firm gets inside such a situation stepping back becomes nearly impassible leading to complete shut down of the firm.
Answer:
See the explanation below.
Explanation:
Fair value of expired option = 60,000 * $1 * 10% = $6,000
Journal entries will be as follows:
<u>Details Dr ($) Cr ($) </u>
Paid-in capital - stock options 6,000
Paid-in capital - expiration to stock options 6,000
<u>
</u><em><u>To record the expiration of stock option </u></em>
Answer:
The depreciation is $52,500
Explanation:
The formula to compute the depreciation under the straight-line method is shown below:
= 
= 
= $52,500
Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.
So, these usage of hours should be ignored.
