Cost of machine = $1,000
= 
= $1,492.11
)= 
= $75.13
Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567
Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567
Sarah's Machinery Company is deciding to dump its current technology A for a new technology B with smaller fixed costs but bigge
1 answer:
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Answer:
C. Stella, Capital will be debited for $4,000.
Explanation:
As for the provided information, we have,
Out of all the partner's Tiffany is retiring.
Tiffany's capital balance = $50,000
On his retirement he is paid $60,000
Since no goodwill is recorded, the excess amount paid over capital = $60,000 - $50,000 = $10,000, will be debited in remaining partner's ratio.
Ron's share in these $10,000 = $10,000 3/(3+2) = $6,000
Stella's share = $10,000 2/(2+3) = $4,000
Thus, Correct answer is debiting Ron's capital by $6,000 and Stella's capital by $4,000