Answer:
c. $310,450
Explanation:
The computation of the capitalized cost of the income is shown below:
= Present value of the annual cash flow × discount factor for 10 years at 5%
where,
Present value of the annual cash flow = $50,000 ÷ 0.10 = $500,000
And, the discount factor is
= 1 ÷ (1 + rate) ^ years
= 1 ÷ (1.10)^5
= 0.6209
So, the capitalized cost of the income is
= $500,000 × 0.6209
= $310,450
Answer:
Profit arises when total sales exceed total cost for a period. Once a profit has been made, the owners of the business have a choice: Take the profit out of the business (e.g. pay a dividend to shareholders) Retain the profit in the business – either in cash or by investing the profit into new assets.
Answer:
Functional structure.
Explanation:
Functional structure of a business is one that is based on the different functions that exists in different departments. For example a business can be structured with accounting, sales, operations, and human resources seperate. People with similar specialities are grouped together to achieve departmental objectives.
The advantage of this is that communication within the department is good and they work efficiently because they understand themselves.
Communication between departments is done between the department heads.
Answer
Hello,
The correct answer option is {C}
Explanation
Every year, 6% of the debt increases as the interest rate is charged, thus the grand total of the actual debt will be more than $30000 due to the added interest. In addition to that, the monthly payment of $255 is inclusive of the payment of the principal amount and interest on the loan.
Wish you Luck!
Answer:
Results are below.
Explanation:
<u>First, we will determine the net income for tax purposes:</u>
Sales= 800,000
Expenses other than depreciation= (350,000)
Gross profit= 450,000
Depreciation= (200,000)
EBT= 250,000
Tax= (250,000*0.34)= (85,000)
Depreciation= 200,000
Net income= 365,000
<u>Now, for reporting purposes:</u>
Gross profit= 450,000
Depreciation= (130,000)
EBT= 320,000
Tax= (320,000*0.34)= (108,800)
Depreciation= 130,000
Net income= 341,200
