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stiks02 [169]
3 years ago
9

A firm is considering purchasing two assets. Asset L will have a useful life of 15 years and cost​ $4 million; it will have inst

allation costs of​ $750,000 but no salvage or residual value. Asset S will have a useful life of 5 years and cost​ $2 million; it will have installation costs of​ $500,000 and a salvage or residual value of​ $400,000. Which asset will have a greater annual straightminusline ​depreciation?
Business
1 answer:
Andreyy893 years ago
6 0

Answer:

D. Asset S has $103,333 more in depreciation per year.

Explanation:

For computing the greater annual straight minus line ​depreciation first we have to determine the each assets depreciation expense which is shown below:

For Asset L

= (Original cost + installation cost - salvage value) ÷ (useful life)

= ($4,000,000 million + $750,000 - $0) ÷ (15 years)

= $316,666.67

For Asset S

= (Original cost + installation cost - salvage value) ÷ (useful life)

= ($2,000,000 million + $500,000 - $400,000) ÷ (5 years)

= $420,000

As we can see that the Asset S has high annual straight-line depreciation

And, the amount exceed is $103,333.33

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Two successful firms are observed with quite different compensation plans for their salespeople. One firm pays its salespeople o
cricket20 [7]

Answer:

Salary and Commission compensation benefit has its pros and cons. However, The Company that adopts Salary Compensation benefit might be making a mistake.

Explanation:

If you pay salesmen a straight salary, some may have limited motivation to exceed basic expectations. However, commission based remuneration is pro performance in that drive salesmen to set more aggressive goals, work through obstacles and rejection to meet their target for a particular period.

Businesses that pay fixed salaries incur higher overhead costs because you have to pay whether you are making profits or not. But the case is different in Commission based compensation benefit where the risk is shared and commission is only paid when money is made.

5 0
3 years ago
Read 2 more answers
__________ is the function in business that is responsible for acquiring funds for the firm and managing funds within the firm.
Contact [7]

The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing

<h3>What is  financial manager?</h3>

Financial managers are in charge of an organization's financial health. They create financial reports, direct investment activities, and plan for their organization's long-term financial goals.

A financial manager is in charge of maintaining the proper balance of equity and debt. Funding allocation: The next step is to allocate the funds after they have been raised. The best way to allocate funds: the size of the organizations and their ability to grow.

The finance function serves two primary functions: it provides the financial information that other business functions require to function effectively and efficiently. to assist with business planning and decision making

To know more about  financial manager follow the link:

brainly.com/question/1279044

#SPJ4

6 0
2 years ago
Which of the following is not a fee that contributes to the initial cost of leasing a car? a. First payment b. Final payment c.
Darya [45]

The final payment is <u><em>not </em></u>a fee that contributes to the original cost of leasing an automobile, option B is the correct answer.

<h3 /><h3>How is leasing charged?</h3>

The first payment is, predictably, the same as one month's rent.

A lender or lessor will impose an acquisition fee to offset the costs of establishing a loan or lease agreement.

A disposition fee, sometimes known as a turn-in fee, is a cost associated with returning a rented vehicle.

Therefore, final payment doesn't contribute to leasing a car.

For more information about leasing, refer below

brainly.com/question/1059164

6 0
2 years ago
Read 2 more answers
Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectibl
goldfiish [28.3K]

Answer:

S/n      Account Title and Explanation      Debit     Credit

a.         Bad Debt Expense                         $5,460

            ($182,000 sales x 3%)

                   Allowance for Doubtful Accounts       $5,460

           (To record bad debt expense)

b.        Bad Debt Expense                         $5,460

            ($182,000 sales x 3%)

                   Allowance for Doubtful Accounts       $5,460

           (To record bad debt expense)

4 0
2 years ago
In a _________________________ economy, the individuals and the government share in the economic decision-making process. These
Fantom [35]

<u><em>Answer:</em></u>

<u><em>Mixed economy</em></u>

<u><em>Explanation:</em></u>

There are three types of Economies:

<u><em>Command Economy:</em></u>

An economy where price and products are controlled by the government. It is very commonly seen in communist countries, like China or Vietnam.

<u><em>Free market:</em></u>

An economy where the government has little to no control. However, a perfect free economy doesn't exist anywhere, and is just a concept.

<u><em>Mixed Economy:</em></u>

An economy where the market is controlled by both the people/consumers, and the government. America is a mixed economy. Individuals are allowed to own property with little government intervention. However, the government has a lot more control over other sectors of the market.

<u><em>So, to answer the your question, because the Mixed economy is controlled by the government and the poeple, it is the answer.</em></u>

6 0
2 years ago
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