Answer:
Consider the following calculations
Explanation:
Annual Depreciation for Project C = ($240,000- $36,000) / 4 = $51,000
Average Net Cash Flows for Project C = (96000 +66000 + 76000+36000) / 4 = $68,500
Average Accounting Profit = Average Net Cash flows - Annual Depreciation = $68500- $51000 = $17,500
Average Investment = (Initial Investment + Salvage Value) / 2 = ($240000 + $36000) /2 = $138,000
Accounting rate of return = Average Accounting Profit / Average Investment = $17500 / $138000 = 12.68%
Answer:
Individuals who earn ~$500,000 and above 40% of all income taxes, and pay 59.1% of all taxes shared. In a common sense, the amount paid should be proportional to not only the amount they earn, but also the amount of people within that tax bracket. In essence, the United States should not increase the top tax rate to 90%, as it is an extremely unfair tax to individuals, just because they are "richer". Also, a hike in taxes to the rich would negatively affect everybody else as well. Many rich people own successful businesses that employ hundreds, if not thousands of middle class and lower class workers. An increase in taxes can lead to lower pays, stagnant job growth or even shrinking, as well as higher costs of products and services to help make up for the amount loss to taxes. The United States government do not need the extra funds if they themselves push for agendas that are not beneficial to the ordinary American, and therefore, they do not have the justification to raise the tax rate.
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Answer:
Depreciation amount at the end of one year is $10,900
Explanation:
Land is not depreciated because land is assumed to have an unlimited useful life. Building is a long lived assest and it has limited useful lives. Therefore, building is depreciated assets.
The building acquisition cost is = Building transaction value + building transfer costs + Renovation cost
= $88,000 + $4,000 + $25,000
= $117,000
Depreciation value = The building acquisition cost - The residual value
= $117,000 - $8,000
= $109,000
Depreciation amount under the Straight-line method is calculated as below:
Yearly depreciation =
=
= $10,900
Answer:
a. The company should recognize one-twelfth (1/12) of each subscribers' cash advance each month for 12 months.
b. The amount of revenue the company should record for eight issues is $40 [$60 × 8/12].
Explanation:
The revenue recognition principle dictates that revenue is recognized in the period in which it is earned. When the company collects cash in advance for each subscription, it should record the $60 to a liability account like Cash Advances, Customer Advances, Unearned Revenue, or Deferred Revenue. Every month for 12 months, the company should recognize one-twelfth (1/12) of each subscribers' cash advance (or $5) as Subscriptions Revenue, Sales Revenue, or Earned Revenue. Therefore, if issues have been delivered for eight months now, the company should have recorded $40 of each $60 subscription.