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kogti [31]
3 years ago
9

A machine costs $600000 and is expected to yield an after tax net income of $23000 each year. Managment predicts this machine ha

s a 10 year service life and a $120000 salvage value, and it uses straight line depreciation. Compute this machine's accounting rate of return
Business
1 answer:
galina1969 [7]3 years ago
7 0

Answer:

6.39%

Explanation:

The cost of the machine is $600,000

The net income is $23,000

The management predict a that it has a 10 years service life

The salvage value is $120,000

The first step is to calculate the average investment

Average investment= (Cost of machine+Salvage value)/2

= $600,000+$120,000/2

= $720,000/2

= $360,000

Therefore, the accounting rate of return can be calculated as follows

= Annual net income/Average investment

= $23,000/$360,000

= 0.0639×100

= 6.39%

Hence the accounting rate of return is 6.39%

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The building code of River City requires that elevators in public buildings be inspected every nine months. Hal did not have the
Archy [21]

Answer: Public tort

Explanation: In simple words, public tort refers to the minor breach of contract by an individual. It is considered as a civil offense but still the acts under this act carries a criminal punishment.

In the given case, Hal did not make the elevator inspected in the seventh story for two years, however all other were inspected as per the rules. Thus, we can conclude that he breached the rule on a small level.

Hence from the above we can conclude that his offense would be classified as public tort.

3 0
3 years ago
Write an essay about unemployment/retrenchment and globalisation
galina1969 [7]
I can help you write your essay.

Unemployment

- define unemployment

- What results because of unemployment

- why does unemployment happen?

- when does unemployment happen?

- Who are the most unemployed people? Why?

- research information about unemployment

retrenchment

- define retrenchment

- what causes retrenchment to happen?

- How does retrenchment affect society


Globalisation

- define globalisation

- What happens during globalisation?

- Is globalisation a good or bad things? What does it impact?

Please vote my answer branliest! Thanks.
8 0
2 years ago
In comparing money to a share of microsoft stock held by an individual, we can say:_______.
Anastaziya [24]

In comparing money to a share of Microsoft stock held by an individual, we can say, only the money is a means of payment, but both are stores of value.

In order to serve as a medium of exchange, money is very widely accepted as a method of payment. When comparing money to a share of Microsoft stock which is held by an individual, it can be said that money is a means of payment, but here the stock and money both are stores of value.

As a store of value, money is not unique as there are many other stores of value exist, such as stocks, land, works of art etc. Money may not even be the best store of value because it depreciates with inflation.

Hence, money is a means of payment, but together with money, stocks can also be stores of value.

To learn more about stocks here:

brainly.com/question/12737015

#SPJ4

7 0
2 years ago
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such a
Olenka [21]

Answer:

a.

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.  

Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.  

Examples: Revenue earned, expenses incurred etc.  

There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.  

The two methods of presenting cash flow statement are:  

  1. Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.  
  2. Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.  

3 0
3 years ago
Sin Qua Corporation is a company listed on the stock exchange and issues corporate bonds. Which statement is most likely true?
ch4aika [34]

Answer:

Investors will have to pay tax on the interest income received from the bonds.

Explanation:

Interest earned from corporate bonds and capital gained through corporate bond transactions is taxable income.  The interest earned from a corporate bond is subject to taxation by both the federal and state governments.

The government will not sell sin Qua corporation bonds as it is a public company.  Bonds do not pay interest quarterly but rather semi-annually or annually.  Again, the maturity of the bond is determined at the time they are issued. Creditworthiness will only affect the bond price but not its maturity period.

Investors will have to pay tax on the interest income received from the bonds is thus the correct statement.

8 0
3 years ago
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