Answer:
Alwan expect to pay for airplane 4= $747818.48
Explanation:
given data
expect to pay airplane = 4
3rd plane produce = 20,000 hours
learning curve = 85%
solution
As here logarithmic approach allow get labor for any unit, TN, as
TN = T1(Nb)
here TN is time for the Nth unit and T1 is hours to produce the first unit
so
b = (log of the learning rate) ÷ (log 2) = slope of the learning curve
so
T3 = T1(3log(0.85)÷log2)
so we get
So Alwan expect to pay for airplane 4 = $747818.48
Answer:
warrant expense 51,000 debit
cash 6,000 credit
warranty liability 45,000 credit
--to record warrant-related accounts--
interest payable 16,667 debit
interest expense 3,333 debit
cash 20,000 credit
--to record interest expense for the loan and installment--
Manufacturing Facilities 5,192,772 debit
Cash 5,000,000 credit
Restoration Liability 192,772 credit
-- to record the payment to contractor--
Explanation:
Warranty: the additional expected expense are considered warranty laibility
Loan: we previously recorded accrued interest from March 1st to Dec 31th
That is: 200,000 x 10% x 10/12 months = 16,667 payable
At February 28th we recognize the last two month of interest
200,000 x 10% x 2/12 months = 3,333 expense
in total we have 16,667 + 3,333 = 20,000 cash outlay
Facility: the asset should add to all the cost necessary to acquire it:
As the conversion into community center is mandatory it is part of the cost:
present value of the 500,000 in ten years:
Maturity $500,000.00
time 10.00
rate 0.10000
PV 192,771.6447
Total cost:
5,000,000 cashg + 192,772 liability = 5,192,772