Answer:
b. if the firm charges the users depreciation only, the likely consequence is that demand for resources equals capacity.
Explanation:
When the large central system is purchased it will cost high and therefore depreciation expense will be higher for the large systems. The depreciation expense needs to be allocated equally to all the users of large central system because if the entire cost will be charges to a single user it will start creating loss to the company and demand be will less than the capacity. If only depreciation cost is charged the users will be allocated lesser costs and will result in higher profits.
Answer:
$108,622.60
Explanation:
Calculation for the amount Janine's IRA will worth when she needs to start withdrawing money from it when she retires
Based on the information given we were told that She has the amount of $5,000 in an IRA, which is a vital part of her retirement nest egg in which She has well believes that her IRA will increase at an annual rate of 8%.
Secondly we were told that she is 25 age and plan to retire at the age of 65 which means that the number of years until her retirement will be 40 years(65 years-25 years)
Now let calculate how much she will be worth using this formula
Amount worth= Present value in IRA*(Annual rate increase)^ Numbers of years until retirement
Let plug in the formula
Amount worth=5,000 *(1 + 0.08)^40 =
Amount worth=5,000*(1.08)^40
Amount worth =5,000*21.72452
Amount worth= $108,622.60
Therefore Janine's IRA will be worth $108,622.60 when she needs to start withdrawing money from it when she retires.
Answer:
Loss on Redemption = $500
Explanation:
<u>Gain or Loss on redemption:</u>
Par value of Bonds $1,000,000
Less: Discount on bonds <u>$15,500</u>
Book Value of Bonds $984,500
Less: Redemption value <u>$985,000</u> ($1,000,000 * 98.50%)
Loss on Redemption <u>$500</u>
Its D because 73% of Japan is covered by mountains
Answer:
Available-for-Sale Securities (AFS) are security instruments of another company that a company buys intending to sell before it matures or in the case of no maturity, the company intends to hold it for a while.
1. Other Comprehensive Income - Current period holding gains or losses
Available for Sale securities will see their values change as time goes on. The changes in their value have to be reflected in the books but because no money is actually being accrued or lost, this cannot be reflected in the Income statement. The various gains or losses in the current period will be recorded in Other Comprehensive Income.
2. Net Income - Realized gains and losses from the sale of AFS securities
When the AFS is actually sold, the gains or losses accrued will be sent to the Income statement as actual cash has now been accrued from its sale.
3. Accumulated Other Comprehensive Income - Net fair value adjustments to date - net holding gains and losses to date.
While the various gains or losses in the current period will be recorded in Other Comprehensive Income, the accumulated gains or losses over the entire periods the security has been held is reported in the Accumulated Other Comprehensive Income which falls under the Equity section of the Balance sheet