Answer:
a.
9 recovery period years class
b.
$8,889 per year
Explanation:
a.
Buses are 9 years recovery period class , in which it is depreciated using historical method and it has 5 years GDS class life.
b.
Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.
We will depreciate this asset for only 9 years because it has 9 years class, even it will be kept for 10 years but the depreciation charged for 9 years.
Depreciation rate = ( Cost - Salvage Value ) / useful life = ($95,000 - $15,000) / 9 = $8,889
Depreciation charged in 2018 = $19,500
<span>Vinny might be able to force the completion of the project. If the two had a written agreement that has not been violated or made conditionally null, then Spud could be legally obligated to complete the project, dependent on the interpretation of the contract by the court.</span>
Answer: $4.34
Explanation:
The net income for diluted earnings per share will be calculated as:
Net income: $2,500,000
Less: preferred dividend: $300,000
= $2,200,000
To calculate the number of shares goes thus:
Total shares of stock options = 10,000 × 20 = 200,000 shares
Proceeds = 200,000 × $29
= $580,000
Shares of treasury stock will be:
= $580,000/$30
= 193,333 shares
Net shares added will be:
= 200000 - 193333
= 6667
Tge total shares for the diluted earnings per share will now be:
= 500,000 + 6667
= 506,667
The diluted earnings per share:
= $2,200,000/506667
= $4.34
Answer: c. No, since the MC and AVC curve intersect at the minimum of AVC
Explanation:
Marginal cost is the cost of producing one extra unit of a product while average cost is the average of all the units produced so far. Therefore, when Marginal cost is low, it pulls the average costs down with it because it will be lower than the Average costs.
However, as Marginal costs start to rise, average cost will still be low because it is taking into account the lower previous marginal costs. Marginal cost will then keep rising until it intersects the average costs at it's minimum. Once this happens Average cost will start being pulled up because the current high costs will on average eclipse the current low costs.
