Answer:
The correct answer is A) $2.800
Explanation:
Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:
- Finding the depreciable cost:
- Finding the depreciation per year:
- Finally, the depreciation tax shield for 2018:
Answer:
The correct answer to the following question is $36,000.
Explanation:
Given information -
Units anticipated to be produced - 300,000 units
Variable cost - $150,000
Fixed cost - $600,000
Beginning inventory - 5000 units
Ending inventory - 7000 units
Income under absorption costing - $40,000
Now under the absorption costing, rate of fixed overhead cost per unit -
Fixed cost / Number of units produced
= $600,000 / 300,000
= $2
In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -
Fixed overhead rate per unit x number of units produced but not sold
= $2 x 2000 ( 7000 units - 5000 units )
= $4000
So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -
$40,000 - $4000
= $36,000 .
Answer:
the correct answer is accrual-basis
Explanation:
"according to the accrual-basis method of accounting, revenues are recognized when they are earned"
good luck
Your answer is a command economy. Good Luck.
Answer:
Explanation:
First, we need to find current stock price, which equals to Next year dividend / (required rate of return - growth rate)
=4 / (0.08 - 0.04)
= $4 / 0.04 = $100
Then we can apply the found current stock price to find present value of growth opportunities
Present value of growth opportunities =current stock price - [forcasted Earning per share / required rate of return]
= $100 - ($4 / 0.08)
=$100 - $50
= $50
