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saveliy_v [14]
4 years ago
14

Using the FASB Codification as a guide, a small computer manufacturing industry you are working for would like to make some adju

stments to their straight line depreciation for its manufacturing equipment while in the process of obtaining a bank loan. The company has determined the estimated life of the equipment to be 20 years and the estimated salvage value for this equipment to be higher than the original cost of the equipment. As a new accountant for this company, how would you resolve this situation. Be sure to cite your source, you can use ASC xxx-xx-xx-x. Do not forget to respond to the other topic this week.
Business
1 answer:
Tcecarenko [31]4 years ago
7 0

Answer:

Check the following explanation.

Explanation:

This will be covered under Accounting principles , Changes and Restatements.

Specifically FAS 154 requires such change to be recognized currently and prospectively.

In this case the effect of change will be carried in current year and future years also as there is change in estimate life of equipment and its salvage value. Company can not mae any change in any past year as there is restriction on making such change. So it will show its prospective effect only.

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Magnira Corp., a small-scale e-learning firm, recently bought a three-year license of a cloud-based software. The software provi
Daniel [21]

Answer: Communication cost

Explanation:

All or most server companies do allocate some form of liscence to their clients to browse the internet and use some internet tools for space of a period time. This service could either provide internet service or more depending on the cost and the kind of package that was bought. The process of acquiring this could be known as communication cost.

5 0
3 years ago
Which of the following is NOT Considered personal information?
lbvjy [14]

Answer: NOne of the above. Or C Place of employement

Explanation:

5 0
3 years ago
Read 2 more answers
You are considering opening a new plant.
kotykmax [81]

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

6 0
3 years ago
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order sh
Alja [10]

Answer:

The correct answer is A. micro-marketing.

Explanation:

In micro marketing strategy marketers give their advertising ans selling efforts on a small group of tightly targeted consumers.

For example, the market can be grouped into small groups based on a commitment to a product class or readiness to purchase a given brand.This grouping can be based on following aspect of customers

1). Locayion

2). Relationships

3). Job Title

4). Industry

5). Size

5). Customer Needs

6). Brand Loyalty

7). Customer Recovery

8). Price Sensitivity

Nike allows customers to order shoes with custom color combinations is a type of need based micro-marketing.

4 0
3 years ago
Ten years ago, Stigler Company issued $100 par value preferred stock yielding 6%. The preferred stock is now selling for $102 pe
Alik [6]

Answer:

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

Explanation:

A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on preferred stock can be calculated as follow,

Current Yield - Preferred stock = Dividend per year / Current price

Dividend per year =  100 * 0.06 = $6 per year

Current Yield = 6 / 102

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

4 0
3 years ago
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