Answer:
Facultative
Explanation:
Facultative reinsurance is a type of coverage which covers a single risk or a block of risks held in the book of business of the insurer who has purchased the cover.
It allows the company which reinsurance to review individual risks which helps in determining whether to accept or reject them
The Facultative reinsurance is more focused in nature.
Answer and Explanation:
1. Event Nature of expenditure
The capital expenditure is the expenditure which is incurred for one time or we can say it is spent on long term assets. While on the other hand, the revenue expenditure is expenditure which is incurred on frequent basis
Based on this, the treatment is as follows
i. Capital expenditure
ii. Revenue expenditure
iii. Revenue expenditure
iv. Capital expenditure
2. The Journal entry is shown below:-
a. Equipment Dr, $40,000
To Cash $40,000
(Being replacement of compressor is recorded)
Here we debited the equipment as it increased the assets and we credited the cash as it decreased the assets
b. Building Dr, $225,000
To Cash $225,000
Here we debited the equipment as it increased the assets and we credited the cash as it decreased the assets
Weighted average cost of capital = [Cost of equity * Proportion of equity] +[Cost of preferred stock * Proportion of preferred stock] +[Cost of debt *(1-tax rate)*proportion of debt]
Cost of equity =0.14
Proportion of equity = 75/150 = 3/6
Cost of preferred stock = 0.08
Proportion of preferred stock = 25/150 = 1/6
Cost of debt = 0.06
Tax rate = 0.34
Proportion of debt = 50/150 = 2/6
Weighted average cost of capital =[0.14*3/6]+[0.08*1/6]+[0.06 (1-0.34)*2/6]
Weighted average cost of capital = 0.07+0.013+0.0128 = 0.0958 = 9.58%
Answer:
It is more convenient to rework the units and sell them for the full price.
Explanation:
Giving the following information:
The company has 19,000 defective units.
The units can be:
a) sold as-is for $3.40 each
b) reworked for $4.80 each and then sold for the full price of $8.80 each.
<u>We won't take into account the firsts $5.4 costs because they are irrelevant for the decision-making process.</u>
Sell as-is:
Effect on income= 19,000*3.4= $64,600
Rework:
Effect on income= 19,000*(8.8 - 4.8)
Effect on income= $76,000
It is more convenient to rework the units and sell them for the full price.
When a lending institution receives an amount from the individual on his/her monthly paycheck for covering his/her due debts is called Garnishment.
Option B is the correct answer.
<h3 /><h3>
What is a paycheck?</h3>
A paycheck is a check provided to the employee for the work done by him/her. It defines the amount of remuneration and other incentives earned by the employee on a monthly basis.
A legal technique that allows a third party to reduce a certain amount from the salary or wages of an individual against the payment of any dues, then this technique is called Garnishment. The third party can be the bank of the debtor and the receiver is the lending institution to whom an individual has to pay back the due amount.
Therefore, Garnishment is the process where the lender receives a certain amount from the salary of the debtor against his/her dues.
Learn more about the Garnishment on paycheck here:
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