The answer & explanation for this question is given in the attachment below.
Answer:
landlord´s responsibilities:
- working appliances: repair or replace broken appliances, unless tenant is responsible because they didn't use them properly
- removal of bedbugs: the owner must provide warranty of habitability, so any type of bedbugs, or other insect or animal infestation should be eliminated.
- fixing locks and windows: repair or replace broken locks or windows, unless tenant is responsible because they didn't use them properly
tenant's responsibilities: (besides paying the rent)
- working appliances: the tenant must operate appliances in a reasonable manner
- basic housecleaning: the tenant is responsible for keeping the house clean and removing garbage
- fixing locks and windows: the tenant must use them in a reasonable manner
Answer: The following journal entries would be recorded upon disposal of the equipment:
Debit Credit
Cash $100,000
Accumulated depreciation $140,000
Equipment $250,000
Loss on disposal of asset $10,000
Explanation: Using the straight-line method of depreciation, the following formula applies: (Historical cost - Salvage value) / No of years
<u>Depreciation = ($250,000 - $50,000) / 5 years = $40,000 yearly </u>
Accumulated depreciation (January 1, 2010 - July 1, 2013) for three and half years is $140,000 (3.5 years * $40,000). This means that the equipment had a net book value (NBV) of $110,000 as at the time of disposal. So, the above entries would eliminate the asset in the books and recognise the loss on disposal (sales proceed was less than the NBV).
Answer: Subcontracting production
Explanation:
It is cheaper for ABC Company to subcontract the jobs than to hire and fire workers as needed. Even though the cost is similar when it comes to hiring permanent workers and training them vs subcontracting them, when the company needs to produce less goods, the cost of firing the permanent employees is simply too much.
For instance, 1,000 units out of the 4,000 units in the second quarter cannot be covered by the 30 workers they have. They will need to hire 10 additional workers and training them would cost $30,000. That is the same cost they would incur if they subcontracted (30 * 1,000 units = $30,000).
What happens in quarter 4 however, when they have to let go of 10 employees because production dropped by 1,000 units? They will have to pay $50,000. If they were subcontracting, they would not have to pay a dime. It is therefore better to subcontract.
Answer:
Company HD has a higher return on equity (ROE) than Company LD, and its risk as measured by the standard deviation of ROE is also higher than LD's.
Explanation:
