Answer:
The manufacturing overhead cost during the year=$128,000
Explanation:
The manufacturing overhead costs can be calculated using the formula below;
O=C-M
where;
O=manufacturing overhead costs
C=conversion costs
M=material costs
In our case;
O=unknown
C=$728,000
M=$600,000
replacing;
O=728,000-600,000=128,000
O=128,000
The manufacturing overhead cost during the year=$128,000
Answer:
NPV = 1,003,046
Explanation:
NPV = Present value of income - investment
investment 8,000,000
1,490,000 income per year during 8 years at rate x
We need to calculate the WACC so we can know the rate
equity-ratio = 0.40
debt-equity ratio = 0.6
WACC 6.69590%
Now that we achieve the rate we solve for the present value of the cash flow
PV 9,003,046
And finally get the answer
NPV 9,003,046 - 8,000,000 = 1,003,046
Become less valuable over time
Answer:
It's fair value at the date of the transfer
Explanation:
Transfers of securities between categories of investments should be accounted for at FAIR VALUE, with unrealized holding gains or losses treated in accordance with the nature of the transfer.
Available-for-sale securities are reported at fair value; changes in value between accounting periods are included in accumulated other comprehensive income in the equity section of the balance sheet.
The fair value option gives companies the option to report most financial instruments at fair value with all gains and losses related to changes in fair value reported in the income statement.
