The overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject is 11.4%
Explanation:
Capitalization is the accounting of expenditures and the regular distribution of investments in fixed reserves over future years. Capitalisation, in other words, includes an expense usually documented in a temporary account and reported as an income account on a permanent basis.
Take the average of the three property capitalization rates to find the overall capitalization rate.
The machines' second-year depreciation under the straight-line method is $26,500.
To determine the depreciation amount using the straight-line method, we have to consider the machine's useful life only as the depreciation basis. The formula used for the calculation is: (Asset value-salvage value)/asset's useful life.
Answer:
C) the costs to be incurred by the issuer in connection with the offering.
Explanation:
The bond resolution (or the bond contract) spells out the characteristics of the issue (maturities, call features, etc.), the issuer's responsibilities to bondholders, and any restrictive covenants to which the issuer must adhere. Costs to be incurred by the issuer have no impact on bondholders.
hope this helps have a nice day :)
Answer: See explanation
Explanation:
The journal entry will be prepared as follows:
May 1:
Dr Account receivable $36000
Cr Sales $36000
(To record sales)
Dr Cost of goods sold $23540
Cr Inventory $23540
(To record cost of goods sold)
August 30:
Dr Cash $10380
Dr Allowance for doubtful accounts $25620
Cr Account receivable $36000
(To record collection and written off)
December 8:
Dr Account receivable $25620
Cr Allowance for doubtful accounts $25620
(To record reinstatement)
Dr Cash $25620
Cr Account receivable $25620
(To record collection)
Answer:
Hence, the minimum transfer price = $2
Explanation:
Transfer price is the price at which goods are exchange between branches or divisions of the same group
Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows
Minimum transfer price = Variable cost
It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division is currently having excess capacity- it can meets all demands both external and internal.
<em>Therefore, any offering price equal to or above the variable manufacturing cost of $2 would be acceptable and optimize the group profit</em>.
Hence, the minimum transfer price = $2
