1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olchik [2.2K]
3 years ago
8

On Jan 1, 2011, P.T. Scope Company purchased a computer system for $3,240. The company expects to use the system for 3 years. Th

e asset has no salvage value. The book value of the system at Dec 31, 2012 is
Business
1 answer:
ira [324]3 years ago
6 0

Answer:

No information given regarding depreciation method Therefore, it is assume P.T Scope Company will use the Straight line Depreciation Method in order to get book value on Dec 31, 2012 and Book value computer system is $1080.

Explanation:

Using Straight line depreciation method the value of Computer system at Dec 31, 2012 is $1080

Depreciation = (cost of asset - Salvage value) / Useful life of asset

Note: In straight line depreciation method the depreciation expense remain constant as it based on the original cost of assets.

Depreciation expense on Dec 31, 2011 = ($3240 - 0 ) / 3 = $1080

Book value on Dec 31, 2011 = $3240 - $1080 = $2160

Depreciation expense on Dec 31, 2012 = ($3240 - 0 ) / 3 = $1080  

Book value on Dec 31, 2012 = $2160 - $1080 = $1080

Straight line depreciation method calculate book value based on the original cost and book value is calculated using Year starting value minus Depreciation expense. Hence, Book value reduce as asset continue to use in business until it reaches to zero or salvage value.

You might be interested in
Shawn Incorporated planned to produce 3,000 units of its single product, Megatron, during November. The standard specifications
kow [346]

Answer: The actual cost of materials was less than the standard cost

Explanation:

Net materials cost variance = Favorable materials price variance + Favorable materials quantity variance

= 380 + (-120 unfavorable)

= 380 - 120

= $260 favorable

<em>As the materials cost variance is favorable, it means that the actual cost of materials was less than what was budgeted for it or rather its standard cost. </em>

7 0
3 years ago
We would like to invest $10,000 into shares of companies XX and YY.
garri49 [273]

Answer:

c. $5,000 into each company

Explanation:

Let X be the actual (random) return from each share of XX, and  Y be the actual return from each share of YY. Computing the returns from each option:

A) Investing $10,000 into XX

Given that variance = (standard deviation)²

Since XX cost $20 per share, only 500 shares can be bought.

Expected value = 500 * E(x) = 500 * 1 = 500

Variance = 500² * Var(x) = 500² * 0.5² = 62500

B) Investing $10,000 into YY

Since YY cost $50 per share, only 200 shares can be bought.

Expected value = 200 * E(y) = 200 * 2.5 = 500

Variance = 200² * Var(y) = 200² * 1² = 40000

C) Investing $5,000 into each company

Since XX cost $20 per share and YY cost $50 per share, only 250 shares of XX and 100 shares of YY can be bought.

Expected value = 250 * E(x) + 100 * E(y) = 250 * 1 + 100 * 2.5 = 500

Variance = 250² * Var(x) + 100² * Var(y) = 250² * 0.5² + 100² * 1 = 25625

Since all options have the same expected return, but option C has the lowest variance hence it is the least riskiest. So the best option is C

5 0
3 years ago
All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT: ​
Slav-nsk [51]

Answer:

d. internal politics

Explanation:

Considering all the options given

Option a technological advance is a valid basis for identifying potential projects in most organizations as it may be the key driver for the profitability of a project. An investment in a technology that becomes or is obsolete would most likely result in a loss.

Option b environmental consideration is also a valid basis for identifying potential projects as a company's reputation may be jeopardized if a project is not environmentally friendly

Option c social need is also a valid consideration as the need of the consumer may determine the viability of a project.

Internal politics option d is is the only option that does not influence the viability of a project.

4 0
3 years ago
XZYY, Inc. currently has an issue of bonds outstanding that will mature in 31 years. The bonds have a face value of $1,000 and a
Mamont248 [21]

Answer:

7.31%

Explanation:

The question is pointing at the bond's yield to maturity.

The yield to maturity can be computed using the rate formula in excel as provided below:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond would pay annual coupons which is 31

pmt is the annual coupon payment i.e $1000*8.0%=$80.00

pv is the current price of the bond which is $1,084

fv is the face value of the bond which is $1,000

=rate(31,80,-1084,1000)=7.31%

The yield to maturity is 7.31%

That is the annual rate of return for an investor that holds the bond till maturity.

3 0
3 years ago
Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and
Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.  

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.  

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.  

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

6 0
3 years ago
Other questions:
  • Which of the following is not an example of organizational citizenship behaviour? telling your friends about the company’s great
    10·1 answer
  • A stock’s dividend is expected to grow at a constant rate of 5 percent a year. Which of the following statements is most correct
    12·1 answer
  • What can communicators do to ensure facts, rather than vague impressions, are shared?
    7·1 answer
  • amanda wants to become an industrial designer. she wants to learn this special skill from an expert in the industry by working f
    11·1 answer
  • The Turtle Society, a nongovernmental not-for-profit entity (NFP), receives numerous contributed hours from volunteers during it
    6·1 answer
  • Mistor Co. amended its pension plan on January 2 of the current year. It also granted $600,000 of unrecognized prior service cos
    15·1 answer
  • Write before each job situation below the letter corresponding to the type of test described. a. genetic b. skills c. personalit
    14·1 answer
  • "The production supervisor estimates that the ending work-in-process is 16 percent complete. Compute the cost of paint transferr
    9·1 answer
  • Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to
    12·1 answer
  • Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U.S. law? Ple
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!