Answer: Option B -- Turn the company into a public enterprise.
Explanation: Public enterprise can be defined as the type of organization, establishment or business that is fully or partly owned by the government but controlled by the public body/authority. Therefore, if the government wants to regulate the price of private company, which is duly imposed on the consumer, it's a must they go for public enterprise by turning the company into a public enterprise.
Answer:
Annual depreciation= $41,470
Explanation:
Giving the following information:
Purchasing price= $393,000
Salvage value= $74,000
The machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.
To calculate the depreciation expense using the units of activity method, we need to use the following formula on each year:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(393,000 - 74,000)/30,000]*3,900
Annual depreciation= $41,470
Interest is defined as the amount paid regularly at an agreed rate for the use of money lent. Depending on the agreement of both parties, interest is for the delayed repayment of a debt. So, to answer the question above: True.
