Answer:
January 1, 2016:
Dr Accumulated Depreciation account 12,000
Cr Cash account 12,000
Explanation:
The accumulated depreciation account is a contra asset account used to record all the incurred depreciation expense since the asset (or assets) was being used or put into service.
Since the repairs extended the life cycle of the asset, then its accumulated depreciation decreases.
The answer is a , make sure you pick that oneb
Answer:
n = ㏒ P ÷ ㏒ (1.08)
Explanation:
Compound interest rate
A = P × 
where
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
A = amount of money accumulated after n years, including interest.
n = number of years
Since we want the principle amount to double i.e., A = 2P
put this in above equation
2P = P ×
divide both sides by P, we get
P =
put r = 0.08
P = 
P = 
Taking log on both sides
㏒ P =㏒
㏒ P = n ㏒ (1.08)
n = ㏒ P ÷ ㏒ (1.08)
Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
