Answer:
$4080
Explanation:
Straight line method of depreciation is a method of calculating depreciation expense of an asset after years of usage.
Given;
Initial cost of asset = $44,000
Salvage value = $3,200
After five years the asset has depreciated by ($44000-$3200) i.e
$40800
Depreciable asset cost = $40,800 (after 5years)
To determine the depreciation amount recorded during the first year ending 31st December;
Since the van was purchased July 1 of that year, by December 31 of the same year, the van must have been used only for 6months i.e (0.5year)
Depreciation expense = year of usage/total useful life × depreciable cost of asset
Depreciation expense = 0.5/5×$40,800
Depreciation expense = $20,400/5
Depreciation expense = $4080
Answer:
b. Overstate operating income
Explanation:
According to my research on business financing terms, I can say that based on the information provided within the question the impact of this would be an overstated operating income. This refers to a balance that is documented as having more money than it actually has. This would be the case since the payroll payments have not yet been subtracted.
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A barrier to entry is defined as any factor that makes it difficult for a new firm center to enter a market is true :)
Answer:
The Big Bart product line should be retained
Explanation:
Continue Eliminate Net Income
Sales $201,000 $0 -$201,000
Variable costs <u>$175,000</u> <u>$0</u> <u>$175,000</u>
Contribution margin $26,000 $0 -$26,000
Fixed costs <u>$29,800</u> <u>$19,700</u> <u>$10,100</u>
Net Income / (Loss) <u>-$3,800 </u> <u>-$19,700</u> <u>-$15,900</u>
<u>Conclusion</u>; The Big Bart product line should be retained, not eliminated because the Net loss of been eliminated is very negative than to be retained.
Answer:
Earnings Per Share = $3.6
Explanation:
Given
Net Income Average = $33,480
Weighted-average common shares outstanding = 9,300
Shares sold = 4,300
Required
Calculate the company's earnings per share.
Earning per share is calculated as thus;
Let N represent the Net Income; P represent the Preferred Dividend and W represent the Weighted-average common shares outstanding

The question says there was no preferred stock;
So, P= 0
Substitute $33,480 for N and 9,300 for W.
The formula becomes;



Hence, the calculated Earnings per share of Mayan company is $3.6