Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer:
$1,650,000
Explanation:
Preparation of the lower portion of the 2021 income statement .
2021 Income from continuing operations before income taxes5,800,000
Income tax expense(1,450,000)
($5,800,000 × 25 %)
Income from continuing operations4,350,000
Discontinued operations:
Loss from operations of discontinued component(3,600,000)
Income tax benefit 900,000
(25*3,600,000)
Loss on discontinued operations(2,700,000)
Net income$1,650,000
(4,350,000-2,700,000)
Therefore the the lower portion of the 2021 income statement is $1,650,000
Answer:
highly-diversified
Explanation:
Based on the scenario being described within the question it can be said that Steeler Manufacturing would be considered a highly-diversified firm. This term refers to a business/organization that has a wide varied array of operations, all of which are completely unrelated to one another. Which is exactly what Steeler Manufacturing has with it's five subsidiaries. All of which are successful.
Answer:
WACC= 17.95%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.
It is calculated using the formula below:
WACC = (We×Ke) + (Wd×Kd)
Ke-cost of equity- 22%
We- equity weight- 100% - 45% = 55%
Kd-After tax cost of debt-10.3%
Wd- 45%
After tax cost of debt = Before tax ×× (1- tax rate)
After tax cost of debt = 13%× (1-0.21) = 10.3%
Cost of equity = 22%
WACC =(0.55× 22%) + (0.45× 13%)=17.95%
WACC= 17.95%
Answer:
correct option is a. Innovators
Explanation:
solution
As here VALS some are as
- high resources : Innovators
- ideal : thinker and believer
- achievement : achiever and strivers
- self expression : experiences and maker
- low resources : survivors
sop here Innovator segment is most likely feature in the VALS segment to have a top of the line brand new Surface TM Book
so here correct option is a. Innovators