Answer:
Acc dep - manufacturing facility 205,000 debit
Cash 205,000 credit
--to record cost heating system--
Wing 780,000 debit
Cash 780,000 credit
--to reocrd addition of a new wing--
maintenance expense 15,500 debit
cash 15,500 credit
--to record maintenance expense for the period
Assembly line 42,000 debit
Cash 42,000 credit
--to record new assembly line--
Explanation:
1.- the improvements will decrease the accumulated depreciation
2.- The wing will be considered a new asset and depreciate separately
3.- the maintenance cost is cost of the period as it do not upgrade or change the productivity is a cost to maintain the current level.
4.- the assembly line will be reocgnize as an asset as increase the productive capaictive of the plant
Answer:
The correct answer that fills the gap is: pioneering costs.
Explanation:
After the identification of the market comes what is the moment of penetration. Care must be taken with early entry into a national market, since the pioneer costs that the first participants must bear, including the increased risk of business failure, must be taken into account.
There is increase in unemployment rate due to a lot of factors. The Central Bank needs to also be conscious of the tradeoff between unemployment and inflation.
An increase in unemployment rates will often result to decrease in inflation and vice versa. The short-run Phillips curve depicts that in the short-term a tradeoff exist between inflation and unemployment.
A conflict is known to exist between inflation and unemployment
. A trade of often takes place between unemployment and inflation.
In a time of high growth, there tends to be more jobs that are created, causing unemployment to fall. If unemployment falls, it often place an upward pressure on wages, leading to inflation.
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Answer:
$41,125
Explanation:
The calculation of semiannual interest period is shown below:-
Interest = 8% ÷ 2 = 4%
Interest paid = $1,050,000 × 4%
= $42,000
Premium on bonds amortization = (($1,060,500 - $1,050,000)÷ 12)
= $10,500 ÷ 12
= $875
Interest expense = Interest paid - Premium on bonds amortization
= $42,000 - $875
= $41,125
So, for computing the interest expense we simply deduct the premium on bonds amortization from interest paid.
Answer:
Depreciation
Amortisation
Explanation:
Depreciation is a method used in expensing the cost of a tangible fixed asset e.g. machinery, building
Amortisation is a method used in expensing the cost of an intangible asset e.g. patent
Different methods of depreciation and amortisation :
Straight line
double declining
Units of activity
sum of the years
