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borishaifa [10]
3 years ago
12

A British Tran jet costs $ 42,000,000 and is expected to fly 350,000,000 miles during its 12​-year life. Residual value is expec

ted to be zero because the plane was used when acquired. If the plane travels 52,000,000 miles the first​ year, how much depreciation should British Tran record under the​ units-of-production method?
Business
1 answer:
Dmitry [639]3 years ago
3 0

Answer:

Annual depreciation= $6,240,000

Explanation:

Giving the following information:

Purchasing cost= $42,000,000

It is expected to fly 350,000,000 miles.

The plane travels 52,000,000 miles the first​ year

Using the units of production method, we need to use the following formula for each year:

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles travelled

Annual depreciation= (42,000,000 / 350,000,000)*52,000,000

Annual depreciation= $6,240,000

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Changes in stockholders' equity Listed are the equity sections of balance sheets for years 2014 and 2015 as reported by Mountain
svet-max [94.6K]

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

a. The net income is

= $1,500,000 - $800,000 + $210,000

= $910,000

b. The number of  New Share issued is

= 1,600,000 - 480,000

= 1,120,000

c. The price of the new stock per share sold is  

Par Value 1,120,000

Add: Paid In excess Of par (4,100,000 - 520,000) 3,580,000

Net Proceeds from issuance of shares 4,700,000

Number of New Share Issued 1,120,000

Now  

The Average price per share of the new stock sold is

= 4,700,000 ÷ 1,120,000

= $4.20

d. The original price of the share is  

The original issuance price is

= (Paid-in-capital account + common stock account) ÷ original shares  

= (520,000 + 480,000) ÷ 480,000

= $2.08

Therefore we can conclude that

a. Mountain Air's net income for fiscal 2015 is $910,000.

b. The number of new shares issued is 1,120,000.

c. The price per share of the new stock sold during 2015 is $4.20.

d. The original price of the shares was $2.08.

Learn more: brainly.com/question/13931207

5 0
2 years ago
What is Sharpie's target market?
White raven [17]

Answer:

The campaign is aimed at teenagers.

Explanation:

Sharpie's global vice president for marketing, because they “use Sharpie in the most creative, inspiring ways.

Have a good day and stay safe!

5 0
3 years ago
On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to th
Brut [27]

Answer:

PV=?

N=3

FV= 47,700

PMT= 17,000

I= 5%

Put values in financial calculator

Pv=$87,500

Now use this value to calculate residual value at the end of year 4

PV= 87,500

N=4

Fv=?

PMT= -17,000

I=5

$33,084= residual value in 4 years.

Explanation:

3 0
3 years ago
The auditor begins selecting controls to test by _______. by understanding the entity and the business and determining the risk
Gemiola [76]

Answer:

by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level.

Explanation:

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.

An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

In order to start the selection of controls to test, an auditor has to understand the entity and the business, as well as determine the risk of material fraud or error at the financial statement level.

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

A standard unmodified opinion is an opinion where financial statements are presented free of any misinterpretation, in all material respects, in accordance with standards known as Generally Accepted Accounting Principles (GAAP) to provide a high level of assurance.

The standard unmodified opinion comprises of report title, audit report address, introduction paragraph, managements responsibility, auditor's responsibility, opinion paragraph, audit report date and signature and address of certified public accountant firm.

Additionally, an unmodified opinion on financial statements can be defined as an opinion issued by an auditor stating that there are no material misstatements and this simply implies that the, the financial statement represents a true and fair perspective of the accounting information of a business.

6 0
3 years ago
g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it emplo
UNO [17]

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100                          

7 0
2 years ago
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