Answer:
$27,400 and $59,600
Explanation:
The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:
Depreciation expense is
= (Purchase cost - residual value) × useful life ÷ sum of years
= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)
= $27,400
And, the book value is
= Purchase cost - depreciation expense
= $87,000 - $27,400
= $59,600
Answer:
It is departmentalized in a functional way
Explanation:
Functional departmentalization is the type of organizational structure based on common job functions. In Mitchell's case all similar jobs, like legal or marketing, are grouped in one place or on the same floor. This type of organization provides space for further employee's specialization by putting staff in places where their skills can further develop.
Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.
Explanation:
Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.
Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.
