Answer:
the depreciable cost' of the machine is $480,000
Explanation:
The computation of the 'depreciable cost' of the machine is shown below:
Depreciable cost = Asset cost- Salvage value
= $500,000 - $20,000
= $480,000
Hence, the depreciable cost' of the machine is $480,000
We simply deduct the salvage value from the asset cost so that the depreciable cost could come
<span>Perishability of the service sector. Perishability occurs because services cannot be stored for sale in the future. An empty seat in a plane can't be utilized after takeoff; a restaurant will have to serve fresh food because the previous food would be spoilt. There are many factors that causes service capacity perishability but demand seem to be the chief factor. Demand can vary by the season, time, and cycle; it is quite difficult to forecast sales. Once a service is lost, it is forver lost. And this is because like I said earlier most services cannot be stored, saved, retrieved, once they have been un-used. On a bad day, If a hotel manager end up with too many staff or few bookings. This, of course, means that he will be making losses because revenues from his unrented hotel room are lost forever.</span>
Answer:
The deductible interest expense is $22,000.
Explanation:
Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000).
She paid $4,000 of interest on her $30,000 home-equity loan.
She also paid $1,000 of credit card interest and $3,000 of margin interest for the purchase of stock.
Margaret Lindley has $10,000 of interest income this year and no investment expenses.
The deductible interest expense
= $15,000 + $4,000 + $3,000
= $22,000
The interest on credit cards is not deductible as it is a personal interest.
Answer:
a. If all money is held as currency then the banks create no additional money and money supply is = $1,000
b. If all money is in banks but the banks are not loaning it out as they are keeping it in reserves, no loans will be created. Supply is still $1,000.
c. The total money is the amount of deposits multiplied by the money multiplier.
Money Multiplier = 1/required reserve
= 1/0.2
= 5
Supply = 1,000 * 5
= $5,000
d. With equal amounts held as currency and demand deposits, the money multiplier will be;
=
Currency deposit ratio is 1 as the ratio to demand deposits is equal which = 1.
=
= 1.67
Money supply = 1,000 * 1.67
= $1,670
e. If the Central bank increases the money supply by 10% then the monetary base would increase by;
= 10% * 1,000
= $100
Answer:
Coy,Inc.s' treasury stock account would show a balance of $125,000
Explanation:
The first to do is to establish the cost per share of treasury stock
cost per share of treasury stock=cash paid for repurchase/number of shares repurchased.
cash paid for repurchase is $250,000
number of shares repurchased is 25,000
cost per share of treasury stock=$250,000/25,000=$10
The balance of treasury stock=amount paid to repurchase-(cost per share of treasury stock*treasury stock sold)
the balance of treasury stock=$250,000-($10*12,500)=$125,000