Answer:
$63,000
Explanation:
Straight line method charges a fixed amount of depreciation for the period the asset is used in the business.
Depreciation Expense = (Costs - Salvage Value) ÷ Estimated useful life
therefore,
2021
Depreciation Expense = $420000 ÷ 4 = $105,000
2022
One month has already expired, therefore the remaining useful life out of 6 years will be 5.
New Depreciable Amount = Cost - Accumulated depreciation to date
= $420,000 - $105,000
= $315,000
Depreciation expense = $315,000 ÷ 5 = $63,000
Conclusion :
the revised depreciation expense for 2022 is $63,000
Answer:
$40,500.
Explanation:
Calculation for Koch's adjusted basis in machine 2 after the exchange
Based on the information given we were told that Machine 1's had adjusted basis of the amount of $40,500 at the time of the exchange which means that Koch's adjusted basis in machine 2 after the exchange will the amount of $40,500 which is Machine 1's adjusted basis .
Therefore Koch's adjusted basis in machine 2 after the exchange will be $40,500
Answer:
c
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Answer:
The answer is option (C). The firm's required rate of return=11.95%
Explanation:
The required rate of return can be expressed using the formula below;
RRR=RFR+B(MRR)
where;
RRR=required rate of return
RFR=risk free return
B=beta
MRR=market rate of return
In our case;
RRR=unknown
RFR=4.25%
B=1.4
MRR=5.5%
This can be written as;
Required rate of return=risk free return+(beta×market rate of return)
replacing;
RRR=4.25%+(1.4×5.5)
RRR=(4.25%+7.7)=11.95%
The firm's required rate of return=11.95%
Answer:
$1.2
Explanation:
The computation of earning per common share is shown below:
Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = $510,000
And, the number of shares = $400,000 + $100,000 × (3 months ÷ 12 months)
= $400,000 + $25,000
= $425,000
The 3 months is calculated from October 1 to December 31
Now put these values to the above formula
So, the value would equal to
= $510,000 ÷ $425,000
= $1.2
