Answer:
A. Is the process of allocating to expense the cost of a plant asset.
Explanation:
Depreciation can be defined as a process in which the monetary or financial value with respect to an asset decrease or falls over time as a result of wear and tear.
Depreciation is the process of allocating to expense the cost of a plant asset.
Answer and Explanation:
The Journal entry is shown below:-
Factory labor Dr, $480,000
To Factory wages payable $400,000
To Employee payroll taxes payable $80,000
(Being factory labor cost is recorded)
Here we debited the factory labor as it increased the expenses and we credited the factory wages payable and employee payroll taxes payable as it also increased the liabilities
Answer:
USING 0% DISCOUNT RATE
PROJECT E
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 1 5,000
2 6000 1 6,000
3 7000 1 7,000
4 10,000 1 10,000
NPV 5,000
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 1 16,000
2 5,000 1 5,000
3 4,000 1 4,000
NPV 2,000
Project A should be accepted
USING 9% DISCOUNT RATE
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 0.9174 4,587
2 6000 0.8462 5,077
3 7000 0.7722 5,405
4 10,000 0.7084 7,084
NPV (847)
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 0.9714 15,542
2 5,000 0.8462 4,231
3 4,000 0.7722 3,089
NPV (138)
None of the projects should be accepted because they have negative NPV
Explanation:
The question requires the computation of NPV using 0% and 9%.
The cashflows of the two projects will be discounted at 0% and 9%.
The discount factors for each project can be calculated using the formula (1+r)-n. The cashflows of the projects will be multiplied by the discount factors to obtain the present values. NPV is the difference between present values of cash inflows and initial outlay.
The median of all the string numbers would be 52
