Answer: A - Addition to net income under the operating activities
Explanation: Under the indirect method of cash flow, loss on the sale of equipment will be treated under the operating activities.
Here, the loss will be added under the operating activities of the organisation because it is a loss.
While a profit on sale of equipment will be deducted under the operating activities.
People with large heads tend to have high iqs.
The overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject is 11.4%
Explanation:
Capitalization is the accounting of expenditures and the regular distribution of investments in fixed reserves over future years. Capitalisation, in other words, includes an expense usually documented in a temporary account and reported as an income account on a permanent basis.
Take the average of the three property capitalization rates to find the overall capitalization rate.
1. The rate of return for each year is 4.05%
<span>2010 $100 $4 => 4%
2011 $110 $4 => 3.6%
2012 $90 $4 => 4.4%
2013 $95 $4 => 4.2%
Average is 4.05%
2. The dollar-weighted rate of return is
-3(4%) - 2(3.6%) + 1(4.4%) + 4(4.2%)
14.75%</span><span /><span>
</span>
