Answer:
$50,000
Explanation:
Estimated Cost of New Equipment = $500,000
Useful life in years = 5
Estimated Residual Value = $50,000
Expected New Cash Inflows over life of asset = $700,000
Annual depreciation expense = (Estimated Cost of New Equipment-Estimated Residual Value)/Useful life in years
= ($500,000 - $50,000) / 5
= $450,000 / 5
= $90,000
Average annual cash flow = Expected New Cash Inflows over life of asset/ Useful life in years
= $700,000/5
= $140,000
Average annual operating income = Average annual cash flow - Annual depreciation expense
= $140,000 - $90,000
= $50,000
Answer:
B. False. It's called trade payables.
Explanation:
True: if society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with lower costs reduce greater amounts of pollution than those with higher costs
Answer:
The correct answer is a) Physical space for the gallery.
Explanation:
<u>Variable costs</u> fluctuate according on the production of goods of a company, while <u>fixed costs</u> stay the same regardless of the production output. Reviewing all the options:
- Wages paid to three part-time employees <u>vary</u> depending on the amount of hours they work.
- Accountant's fees for preparing tax returns <u>vary</u> depending on the time spent preparing the records.
- The costs of purchasing art work to sell in the gallery <u>vary</u> depending on the amount of art purchased and its value.
That leaves us with option A. The physical space for the gallery. Buildings and rent are known to be a Fixed cost for companies because they stay the same regardless of the production output.
