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4 years ago

Machinery was purchased for $340,000 on January 1, 2017. Freight charges amounted to $14,000 and

Business

1 answer:

Triss [41]4 years ago

4 0

Answer:

Correct answer is A, $133,600

Explanation:

First, let’s compute the capitalizable amount of an asset on January 1, 2017.

Cost of machinery $340,000 plus the freight charges of $14,000 and the installation cost of $40,000 equals $394,000. Capitalizable cost includes all expenses incurred in bringing the asset in to its usable stage.

Second, let’s compute the depreciation expense using straight line method in December 31, 2017.

(Cost of asset - salvage value) / life of an asset

($394,000 - $60,000) / 5 years = $66,800

Finally, we can now compute the accumulated depreciation as of December 31, 2018 by multiplying annual depreciation computed previously (January 1, 2017 to December 31, 2017) by 2.

So, $66,800 x 2 years (2017 & 2018) = $133,600

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The only liability of the bank is deposits that households keep at the bank.The only two assets of the bank are the loans it ma

Arisa [49]

Answer:

The banking industry is one of the fast growing industry globally.

The major liability of the bank is the total deposit made by various individual, household, and firms.

The basic assets of a bank is the loan it lend out to its customers and the reserve it keeps with the the central bank. For instance, in Nigeria, all commercial banks are expected to be #25 billion naira with the central bank of Nigeria.

Banks are profit maximize, each banks constitutes its management with well-trained finance practitioners who specializes in wealth maximization. The bank keeps minimum reserve for profit maximization.

Explanation:

6 0

3 years ago

Jim is being paid $7.25 an hour to work at a restaurant. In the circular flow, this is an example of a:

max2010maxim [7]

Answer:

The answer is household selling a resource in the factor market which is the same thing as business buying resource in the factor market

Explanation:

Factor market is a market in which factors of production e.g land, capital, labor are bought and sold.

In the question above, Jim(household or labor) is working at a restaurant (firm or business). This means Jim is selling his resource(labor) in the factor market while the restaurant is buying the resource(labor) in the factor market.

4 0

3 years ago

Susan Marciano invested part of her $38,000 bonus in a fund that paid a 10% profit and invested the rest in stock that suffered

kakasveta [241]

Answer:

Missing word <em>"The amount invested at 10% is $? and The amount invested in stock is ?"</em>

<em />

Let Susan invested $x that paid a 10% profit

Then (38,000 - x) suffered loss at 4%

Overall net profit = $3,350

10% of x - 5% of (38,000 - x) = $3,350

10/100*x - 5/100*(38,000 - x) = $3,350

10x - 5*(38,000 - x) = 335,000

10x - 190,000 + 5x = 335,000

15x = 335,000 + 190,000

15x = 525,000

x = 525,000/15

x = 35,000

From (38000 - x) when x = 35,000

==> 38,000 - 35,000

==> $3,000

So, the amount invested at 10% is $35,000 and the amount invested at 5% i.e stock is $3,000

3 0

3 years ago

How to make money to live comfortably

inn [45]

Score well in high school and college, volunteer and take leadership roles, these aspects will help you get into a good college and get a good job.

6 0

3 years ago

Read 2 more answers

Avocado Incorporated just paid a dividend of $3. An analyst expects this dividend to grow at a rate of 12% for the next 3 years.

yuradex [85]

Answer:

The most you should pay for this stock is 126.89

Explanation:

The dividend in years 1 – 3 will grow at 12% and then at 5% forever.

We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).

We used our calculators to find the PV of each year at the 8% discount rate. Finally we will add them all together to get the final answer.

We find the future dividends using g =12%

Dividend in year 0 --->

Dividend in year 1 ---> 3.36

Dividend in year 2 ---> 3.76

Dividend in year 3 ---> 4.21

Dividend in year 4 ---> 4.43

Now we will calculate the present value of the future dividends using r = 8%

Stock Value assuming constant growth rate = 147.52 --(a)

PV in year 1 ---> 3.11

PV in year 2 ---> 3.23

PV in year 3 ---> 120.45 --(discounting (a))

= 120.45 + 3.23 + 3.11

= 126.89

4 0

3 years ago