Answer: Depreciation expense for 2021 = $825
Depreciation expense for 2022 =$3, 300
Explanation:
Using Straight line depreciation
We have that our Annual depreciation= Purchase price - salvage value / useful life.
$22,500 - $2,700 / 6
=19,800/6
$3, 300
Depreciation expense for 2021 ( from October to December )
$3,300 x 3/ 12= $9,900/12
=$825
Depreciation expense for 2022 ( From January to December)
Annual Depreciation = $3,300
Answer:
Limited liability company
Explanation:
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.
Answer:
The answer is: The expected rate of return from this investment is 26.68%
Explanation:
We are given the following cash flows for this operation:
- Initial investment = -$24.50
- Cash flow 1 = $1.25 (dividend year 1)
- Cash flow 2 = $1.35 (dividend year 2)
- Cash flow 3 = $1.45 (dividend year 3)
- Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)
Using an excel spreadsheet and the IRR function:
=IRR(value 1: value 5) =26.68%
where
- value 1 = -24.50
- value 2 = 1.25
- value 3 = 1.35
- value 4 = 1.45
- value 5 = 56.55
Answer:
- $ 80,000
Explanation:
The existing Power's profit margin is $0 ($41,700 - $41,700 + $0).
<u>Dropping Windsor division has the following effect :</u>
Increase in cost - opportunity cost of $ 80,000
<em>The opportunity is due to lost contribution </em>
Fixed costs are unavoidable thus, they are irrelevant when doing this calculation.
thus,
Power's profit margin will be - $ 80,000 if the Windsor division was dropped.
