Answer:
D. iv only
Explanation:
Depreciable cost is defined as the difference between acquisition cost of the assets less the salvage value.
Depreciable cost = Acquisition cost - Salvage value.
Depreciable cost refers to the amount invested in the asset which will be depreciated over the useful life of the asset. While calculating depreciable cost, salvage value is subtracted from the acquisition cost. Since salvage value reduces the investment made in the asset.
Answer:
Question 1
The building will depreciate by 10% in one year so in one year you will only be able to sell it for:
= 200,000 * ( 1 - 10%)
= $180,000
Question 2.
A. Your bookkeeper is right, because the extra income you will earn will be less than the cost of owning the building for the year.
If you buy the building, you will have to pay back $200,000 in a year.
However, you will only be able to sell the building for $180,000 and you will receive an income of $12,000 for a total of:
= 180,000 + 18,000
= $192,000
This is $8,000 less than the $200,000 you borrowed so you will pay back more than you borrowed.
Question 3
A. Holding onto your $200,000 in cash.
Holding your cash is the best option because investing in the building would lead to a loss of $8,000 after a year.
The bank would also reduce your balance by 1%. It is therefore best to hold the money.
Question 4
A. False
Companies with cash still have to make decisions based on gains and they will stand to gain more if they deposited their money because this would give them more interest profits.
Answer:
B. limited decision making
Explanation:
Based on the information provided within the question it can be said that in this scenario Wendy undertook a limited decision making process. This refers to when a consumer makes a decision that requires very little amount of time and effort to make. Which seemed to be the case since Wendy immediately saw the product, looked at the recipe, and instantly decided it would be a good product to purchase.
Answer and Explanation:
The computation of the predetermined overhead rate in the following cases are shown below:
As we know that
Predetermined overhead rate = Estimated overhead ÷ activity level
1.
= $203,000 ÷ 58,000
= $3.50 per direct labor hour
2.
= $203,000 ÷ $1,015,000
= $0.20 per direct labor dollar
3.
= $203,000 ÷ 14,500
= $14.00 per machine hour
For the year ended December 31, 2018, the warranty-related entry would include a debit to warranty expense of $80,000.
If it's miles impracticable to determine the cumulative impact of applying a trade-in accounting principle, then the new accounting principle should be applied prospectively as of the earliest date practicable. in this situation, the disclosures discussed in FSP 30.4.
Cumulative effect equals the difference between the actual retained profits suggested at the beginning of the yr using the antique approach and the retained income that would have been reported at the start of the year if the brand-new technique had been utilized in earlier years.
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