Answer:
depletion of the timber tract = $228,000 and
depreciation of the logging roads = $22,800
Explanation:
Timber tract
Depletion rate = (Cost - Residual Value) ÷ Estimated units
= ($2,950,000 - $670,000) ÷ 5,700,000
= $0.40
Depletion expense = Units used x Depletion rate
= 570,000 x $0.40
= $228,000
Logging Roads
Depreciation rate = (Cost - Residual Value) ÷ Estimated units
= ($228,000 - $0) ÷ 5,700,000
= $0.04
Depreciation expense = Units used x Depreciation rate
= 570,000 x $0.04
= $22,800
Answer:
The Margin of safety is $100,000
Explanation:
Price = Sales / number of units = $1,700,000 / 8500 = $200
Contribution margin ratio is the ratio of contribution margin to the sales value. It measure the ratio that contributes in the recovery of fixed cost and making profit.
Contribution margin ratio = Contribution margin / Sale price = $60 / $200 = = 0.3 = 30%
Break-even is the level of sales at which business has no profit no loss situation.
Break-even point = Fixed cost / Contribution margin ratio = $480,000 / 30% = $1600,000
Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.
Margin of Safety = Total sales - Break-even point = $1,700,000 - $1,600,000
= $100,000
<u>Given:</u>
Real GDP of US = 32000
Growth rate of US = 2%
Real GDP of China = 4000
Growth rate of China = 7%
<u>To find:</u>
Number of years taken for China's real GDP per capita to be larger than real GDP per capita in the United States.
<u>Solution:</u>
The formula to calculate the years is,
![GDP_{US}\times[1+growth_{US}]^n](https://tex.z-dn.net/?f=GDP_%7BUS%7D%5Ctimes%5B1%2Bgrowth_%7BUS%7D%5D%5En%3CGDP_%7BChina%7D%5Ctimes%5B1%2Bgrowth_%7BChina%7D%5D%5En)
On plugging-in the values,
On solving the values we get,
Therefore, we can clearly identify that number of years is greater than 40 and less than 45.
Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.
Let's discuss each employee benefit option we have:
Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent. The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.
Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.
Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.
Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:
- Taxable perquisites
- Tax-exempted perquisites
- Perquisites taxable only by employee
By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.
Learn more about Employee Benefit here: brainly.com/question/12143528
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Complete Question:
Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____
a. Novated leases
b. Fiscal incidences
c. Swaps
d. Perquisites
