Answer and Explanation:
a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-
Depreciation
= (Assets cost - Salvage value) ÷ Useful life
= ($171,000 - 0) ÷ 25
= $6,840
For First year = $6,840
For Second year = $6,840
It would be the same for the remaining useful life
b. The computation of depreciation for each of the first two years by the double-declining-balance method is shown below:-
First we have to determine the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 25
= 4%
Now the rate is double So, 8%
In year 1, the original cost is $171,000, so the depreciation is $13,680 after applying the 8% depreciation rate
And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60
Answer: 2.4%
Explanation:
Cash dividend = $0.85
Earnings per share = $3.50
Market price per share = $35.50
The dividend yield will be calculated as:
= Cash dividends / Market price per share
= $0.85 / $35.50
= 0.024
= 2.4%
The dividend yield is 2.4%.
Answer:
The CPA Practice Advisor
The probability that the mean price for a sample of 30 federal income tax returns is within $16 of the population mean is:
= 56%
Explanation:
a) Data and Calculations:
Population mean (preparation fee for 2017 federal income tax returns) = $273
Population standard deviation of preparation fees = $100
Mean price for a sample of 30 federal income tax returns = $257 (which is within $16 of the population mean)
z = (x-μ)/σ
z = standard score
x = observed value
μ = mean of the sample
σ = standard deviation of the sample
Z = ($273 - $257)/$100
= 0.16
Using the z-table
P = 0.5636
Answer:
No
Explanation:
An investment that "promises" a 44 percent annual return is most likely a scam, because even the riskiest stocks rarely yield annual returns higher than 10% of the initial investment.
Besides, the option is described as very complicated, and you as a potential investor do not understand it well, which is a very difficult position to be in because it could even lead you to being scammed without realizing.
Answer:
For Material 80,000
For Conversion 72,000
Explanation:
The computation of equivalent units of production for the bath linens department for August is shown below:-
<u>Materials</u> <u>Conversion</u>
Units completed and
transferred out 60,000 60,000
Units in process,
August 31 20,000 12,000
(20,000 × 60%)
Equivalent units of
production 80,000 72,000
Therefore to reach out the equivalent units of production we simply added the units completed and transferred out with Units in process Aug 31 of material and conversion.
