Answer:
Annual depreciation= $14,420
Book value= $50,160
Explanation:
Giving the following information:
Purchase price= $79,000
Useful life= 5 years
Salvage value= $6,900
<u>To calculate the depreciation expense, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (79,000 - 6,900) / 5
Annual depreciation= $14,420
<u>Now, the book value:</u>
Book value= purchase price - accumulated depreciation
Book value= 79,000 - (14,420*2)
Book value= $50,160
Answer:
Price =$1,285.71
Explanation:
<em>A perpetual bond is that which pays a fixed amount of interest income for the foreseeable future. It issuer does not always have an obligation for redemption under the terms of loan contract.</em>
The price of perpetual bond can be determined as the present value of a perpetuity. An perpetuity is an annuity that pays a fixed amount of cash flow for a certain number of years
PV = A/r
PV- price of bond- ?
A- annual interest - 45
r- Yield to maturity- 3.5%
Price = 45/0.035=1,285.714
Price =$1,285.71
The amount that ACME Partnership should report as ordinary income is $83,000.
Data and Calculations:
Sales Revenue = $200,000
Cost of goods sold = 115,000
Gross profit = $85,000
Administrative expenses 2,000
Operating income = $83,000
Interest expense 13,000
Taxable income $70,000
Charitable contributions 2,000
Long-term capital gain 10,000
The operating income is the ordinary income before determining the eligibility of the charitable deductions and the long-term capital gain.
Thus, the ordinary income of ACME Partnership is $83,000.
Learn more: brainly.com/question/25056982
Answer:
Production budget 17,900
Explanation:
First, we will calculate the units requirement, that will be the sales for the quarter and the desired ending inventory:
sales of Q1 15,000
desired ending 20% of Q2 sales
20% x 35,000 = 7,000
Total requirement 22,000
Next we subtract the beginning inventory, because those units are already produced, so it decrease our production needs
Total requirement 22,000
beginning inventory (4,100)
Production budget 17,900
