Answer:
(d) Leniency
Explanation:
Based on the information provided within the question it can be said that this scenario is an example of leniency. This is a rater's bias in which a rater gives an individual a rating that may be a little too positive based on the factors that they need to be taking into account when rating. Such as is the case in this scenario since Linda gave Jan excellent ratings even though her performance is average at best.
Answer:
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $184,000 and its tax rate is 35%, what is the after-tax cash flow from selling it?
- ($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60
c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it?
- the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.
Explanation:
MACRS depreciation rate:
Year % Depreciation expense Carrying value
1 20% $60,400 $241,600
2 32% $96,640 $144,960
3 19.20% $57,984 $86,976
4 11.52% $34,790.40 $52,185.60
5 11.52% $34,790.40 $17,395.20
6 5.76% $17,395.20 $0
Answer: bureaucratic control - a government with relentless regulations rules.
corporate control - a large corporation controls people through media or products.
philosophical/religious control - an ideology enforced by the government controls society.
Explanation:
The answer to this question is <span>costs will be analyzed on an ongoing basis.
Which means that the calculation will be made with the assumption that the company is committed to expanding their business.
Without continuous improvement method, companies will overlook several assets that could still be used after one financial period is over.
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