What happens in here is that the company is at stake because the europe plants are crippling the company pursue for success. So this is a matter that should be dealt with immediate attention. Have in mind that b<span>oth the transfer prices and limited technical cooperation from the Europe plants are serious issues</span>
Answer:
a. $22,500
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - salvage value) ÷ (useful life)
= ($750,000 - $75,000) ÷ (10 years)
= ($675,000) ÷ (10 years)
= $67,500
In this method, the depreciation is same for all the rest of the useful life
Now for 4 months, it would be
= $67,500 × 4 months ÷ 12 months
= $22,500
The four months is calculated from January 1 to May 1
Answer:
$5.00
Explanation:
Calculation to determine How much are you willing to pay for one share if you require a 25 percent rate of return
Using this formula
Amount willing to pay=Annual dividend/Rate of return
Let plug in the formula
Amount willing to pay=$1.25/0.25
Amount willing to pay=$ 5.00
Therefore amount willing to pay for one share if you require a 25 percent rate of return will be $5.00
The correct adjustment entry will be:
Prepaid Rent Dr. 900
To Rent Expense 900
An adjustment entry is one that is created to properly allocate each accounting period's income and expense amounts.
In order to ensure that the financial accounts at the end of the year are correct and current, it updates previously recorded journal entries. The matching principle is a requirement in accounting that you must follow. According to the matching principle, revenue is recognized when it is earned and costs are recognized when they are incurred.
Making adjusting entries allows you to correctly and timely record company transactions. But only the accrual basis of accounting is covered by this theory. Adjusting entries are not necessary if your company uses the cash basis technique.
To learn more about adjustment entry, click here
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Answer:
E. a contractual system.
Explanation:
Based on the information provided within the question it can be said that this form of ownership is known as a contractual system. This system is various levels of distribution and production unite in order to accomplish the goal of increasing sales for the company as a whole, which they otherwise would not be able to do separately. Which is what the stores in this scenario are doing by using cooperative advertising to increase their sales.
