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zlopas [31]
3 years ago
14

The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 yea

rs on a straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a straight-line basis over 7 years. Other things held constant, which of the following will occur as a result of this Congressional action? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes.a. LeMond's tax liability for the year will be lower.b. LeMond's taxable income will be lower.c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.d. LeMond's cash position will improve (increase).e. LeMond's reported net income after taxes for the year will be lower.
Business
1 answer:
hammer [34]3 years ago
8 0

Answer:

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

Explanation:

Provided information,

There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.

Thus, depreciation per year will be decreased.

As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.

Also the net balance of fixed assets will be higher, as depreciation is less.

Therefore, correct statement is

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

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__________ argues that the productivity of workers will increase if they are paid more, and so employers will often find it wort
Triss [41]

Answer:

Efficiency wage theory

Explanation:

Efficiency wage theory was first postulated by Alfred Marshall, where he viewed compensation to workers as based on their efficiency.

Companies use efficient wage to reduce staff turnover, as staff are motivated to stay because of wages that are above the industry standard.

It is also a way to reduce cost mostly in industries where the cost of staff replacement is high.

6 0
3 years ago
Ajax Corporation has just decided to let managers work from home one day a week. This decision will
Viefleur [7K]

Answer: Option B        

                       

Explanation: In simple words, increase in supply of managers refers to the condition in which the quantity of managers willing to work in certain situations increases due to change in some factors.

As in the given case, the company is offering one day work from home facility to the employees which is beneficial for the personnel in many way as they will get extra time for their social life and will save efforts and time they invest while commuting from their residence to office.

Hence due to this decision their utility satisfaction from the job will increase which will further lead to increase in supply of managers in the organisation.

5 0
3 years ago
Unit sales growth and market share growth are two strategies applied in which type of pricing objective?
KiRa [710]
The answer is sales focused since they are most worried about increasing unit sales and market share growth.

Hope this helps! Thank you!
7 0
3 years ago
A consumer's decision to produce a service for himself or herself or contract externally for the service depends on a variety of
harina [27]

Answer:

B. Feelings of pride and pleasure as he looks at the final results.

Explanation:

It is a normal human tendency that a person feels good and happy when he receives what he wants even if that involves payment in the form of money. But if that involves a lot of things more than money, which are generally the efforts of the individual in the form of labor and hard work done by himself then such results gives an immense pleasure to the individual.

This develops not only the satisfaction in terms of what you see in the results but also one tends to develop the skills of doing such particular job.

5 0
3 years ago
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling pri
BARSIC [14]

Answer: The answer is $128,000

Explanation:

$ $ $ $

Selling price. 180,000. 140,000. 120,000. 60,000

Less 10% commission 18,000. 14,000. 12,000. 6,000

-------------- -------------- --------------- -------------

162,000. 126,000 108,000. 54,000

Less cost. 128,000. 133,000. 90,000. 45,000

--------------- ---------------- --------------- ----------------

34,000 (7,000) 18,000. 9,000

Add: replacement cost 120,000. 130,000 110,000. 41,000

------------------ --------------- --------------- --------------

Inventory 154,000. 137,000. 128,000. 50,000

----------------------- ----------------- ------------------ -----------------

3 0
3 years ago
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