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djyliett [7]
3 years ago
6

A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of

5 years. The $75,000 cost of this repair is: A. a revenue expenditure B. an ordinary repair and maintenance expenditure C. a capital expenditure. D. either (A) or (B).
Business
1 answer:
Bumek [7]3 years ago
6 0

Answer:

C. A capital expenditure.

Explanation:

This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.

These types of expenses are capitalized in the balance sheets under the original asset name and the asset is revalued by the improvement cost and stated at net book value + improvement.

Revised depreciation is then calculated on this new NBV as applicable with increased life of asset.

Hope that helps.

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On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi
const2013 [10]

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39  

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39  

                                    =$21,197.61

4 0
3 years ago
When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may b
love history [14]

When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.

Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.

It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.

When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.

The correct option is A.

Read related link on:

brainly.com/question/10822075

4 0
2 years ago
When an automobile manufacturer is careful to purchase only the highest-quality components for use in production, this is an exa
Kryger [21]

Answer:

The option for this question are the following:

A. Concurrent

B. Statistical

C. Inventory

D. Feedforward

The correctt answer is D. Feed forward.

Explanation:

Feedforward is the process by which feedback between company members focuses more on future possibilities. That is to say, it is not only about communicating but about doing it thinking about increasing the opportunities that the company has and will be able to have later.

The problem we had when we talked about feedback was that it focused on aspects of the past. Communication was thought of as something of the moment, without determining an intention to take it to another level. The ‘feed’ forward would come into play here.

What is intended with the feedforward is to establish links and ideas, so that teamwork makes business organization easier. Brainstorming and the sharing of solutions and aspects for the company mean that employees can aspire to a positive work future.

8 0
2 years ago
Read 2 more answers
Ethan uses the cash method of accounting and a calendar year. ethan received a check from a client on december 26, 2016. he didn
Volgvan
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6 0
3 years ago
Company is a popular car-wash operation that measures its activity in terms of number of cars washed. Last month, the budgeted l
SSSSS [86.1K]

Answer:

the spending variance is $6,904 favorable

Explanation:

The computation of the spending variance is as follows;

Budgeted Expense is

= 1,230 cars × $4.80 per car + $26,000

=  $5,904 + $26,000

= $31,904

And, the actual expense is $25,000

Therefore, the spending variance is

= $31,904 - $25,00

= $6,904

Therefore, the spending variance is $6,904 favorable

5 0
3 years ago
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