Answer:
B. Digital Technologies
Explanation:
The term that goes in the blank line is Digital Technologies. These technologies are various different electronic tools, systems, devices, and resources that allow the firm to generate, store, and process data. These devices and systems give the firms the ability to compete and have an edge over the bigger firms of the industry by using them in a unique and more effective way towards accomplishing their end-goal and improving the customer's experience.
Answer:
$3,160
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
Given that Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual value of $3,300,
Annual depreciation
= ($28,300 - $3,300)/10
= $2,500
At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300,
Net book value at the beginning of the eighth year (before overhauling)
= $28,300 - 7($2,500)
= $10,800
Capitalizing the overhaul cost,
Net book value at the beginning of the eighth year (after overhauling)
= $10,800 + $8,300
= $19,100
Given that the total estimated useful life was changed to 12 years with the residual value unchanged,
Depreciation for the eighth year
= ($19,100 - $3,300)/5
= $15,800/5
= $3,160
Answer: The bond will be issued at a premium
Explanation: If the interest rate on bond is higher than the market interest rate then the investors of such bond will get a greater benefit. Hence to get the greater benefit an investor must pay a higher value, thus, the bond will be issued at premium.
Higher interest rate means the company will pay interest to investors mare than i the general rate in market, Therefore, company can charge investors more from a more valuable asset.
Hence from the above we can conclude that the correct option is c.
Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer:
You will pay back the lender exactly <u>$21,000</u>, which will represent <u>$20,600</u> of purchasing power.
Explanation:
you will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.
$20,000 for this purchase at a 5 percent fixed rate
=$20,000*5/100
=$20,000*0.05 = $1,000
=$20,000 + $1,000 = $21,000
Inflation will be 2 percent this year
=$20,000*2/100
=$20,000*0.02 = $400
=$20,000 + ($1,000 - $400)
=$20,000 + $600 = $20,600
