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saul85 [17]
3 years ago
9

Sunland Company purchased a depreciable asset for $725000 on April 1, Year 15. The estimated salvage value is $68000, and the es

timated useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, Year 18 when the asset is sold
Business
1 answer:
Natali5045456 [20]3 years ago
6 0

Answer:

$405,458

Explanation:

Date of acquisition - 01/04/2015

Date of disposal - 01/05/2018

Time line - 3years 1 month

Useful life - 5years

Salvage value - $68000

Depreciation method - Straight line

Cost of Asset - $725,000

Annual Depreciation = (725000-68000)/5 =657,000/5 = 131500

Accumulated depreciation = (131500*3) + 131500/12

$394,500+10,958

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netineya [11]

Answer:

C.

Explanation:

Does not directly account for the time value of money.

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The positive thinking is necessary to develop decision making skill​
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6 0
3 years ago
On January 1, 20x1, the ABC Corporation purchased 80% of the XYZ Company's voting stock for $3,000,000. The FMV of all of XYZ's
frutty [35]

Answer: $440000

Explanation:

Fair market value = $4025000

Book value of asset = $2,850,000

Land value = $625,000

The value of the goodwill will be

(Fair market value - book of asset - land value) × 80%

= ($4,025,000 - $2,850,000 - $625,000) × 80%

= 550000 × 80%

= 550000 × 0.8

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8 0
3 years ago
Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Requ
RUDIKE [14]

Answer:

Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States

Transfer Pricing:

a) The best transfer pricing method in this case is the cost plus method.  This gives the transfer price as Cost + 50%.

b) The appropriate transfer price should be $3 ($2 x 1.5).

Explanation:

Transfer pricing arises when controlled entities set prices for exchange of goods and services.  When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen.  It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.

There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price.  According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:

a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)

b) Resale price method

c) Cost plus method

d) Transactional net margin method (TNMM)

e) Transactional profit split method.

7 0
3 years ago
The spoon made of silver is a spherical mirror​
Ksju [112]

Answer:

could possibly be true but depended if the spoon is clean

4 0
3 years ago
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