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3 years ago

Which of the following assets would be subject to cost recovery?

Business

1 answer:

Nina [5.8K]3 years ago

8 0

Answer:

The correct answer is letter "C": Landscaping around the doctor's office.

Explanation:

Cost recovery is an accounting method by which the expenses incurred in an organization -for its own benefits- is tried to be recovered. Depreciation is taken into consideration in the process but the least possible so that the return is maximized.

In that sense, only the landscaping of a doctor's office can be considered as a beneficial asset for the business.

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There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions

Burka [1]

Answer:

New houses build =200

Profit =$13,860,000

Explanation:

In this particular question there are 2 scenarios for demand function,

i.e. (a.) 60 percent chance of low demand, $P_{60} = 300,000-400Q$

(b.) 40 percent chance of high demand, $P_{40} = 500,000-275Q$

∴ Expected demand function = 60%×(300000-400Q) + 40%×(500000-275Q)

= 380,000-350Q

$P_{D}$ =380000-350Q

Revenue = (380000 - 350Q)×Q = 380000Q - 350 $Q^{2}$

Here, the no. of new homes build will depend on maximizing profit

∵ Profit = Revenue - Cost

π = (380000 - 350Q)×Q - (140000+240000Q)

π = 380000Q - 350 $Q^{2}$ - (140000+240000Q)

In order to maximize profit , we will

$\frac{\delta P_{\pi}}{\delta Q}$ = 0

$\frac{\delta P_{\pi}}{\delta Q}$ = 380000-350*2*Q-240000

∴ 380000-350×2×(Q-240000) =0

Q=200

So number of houses that they should build =200

π = 380000Q - 350 $Q^{2}$ - (140000+240000Q)

π = 380000-(350× $200^{2}$ ) - (140000+(240000*200))

π =$13,860,000

New houses to be build =200

Profit =$13,860,000

8 0

3 years ago

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of oper

Vladimir79 [104]

1. Total cost per equivalent unit $43.60

2. Equivalent unit in ending inventory 210; 180

3. Equivalent unit in beginning inventory 320; 160

4. Cost of unit started and completed 2,700

5. Cost of ending WIP $5,334 $3,276

Total $8,612

6. Cost of the units transferred to the next department $84,828 $54,972

Total $139,800

1. Computation the total cost per equivalent unit for the month.

Total cost per equivalent unit =$ 25.40 +$ 18.20

Total cost per equivalent unit=$43.60

2. Computation for the equivalent units of material and conversion in the ending inventory.

Material Conversion

Equivalent unit in ending inventory

300×70% = 210 300×60% = 180

3) Computation for the equivalent units of material and conversion that were required to complete the beginning inventory.

Material Conversion

Equivalent unit in beginning inventory 400×80% =320 400×40% = 160

4) Computation for the number of units started and completed during the month.

Cost of unit started and completed = 3,100-420

Cost of unit started and completed= 2,700

5. Computation for the cost of ending work in process inventory for materials, conversion, and in total for the month.

Material Conversion

Cost of ending WIP

210×$25.40=5,334 180×18.20=3,276

Total =5,334+3,276

Total=$8,612

6. Computation the cost of the units transferred to the next department for materials, conversion, and in total for the month.

Material Conversion

Cost of ending WIP (3,020×$25.40+$8,120) (2,860×$18.20+$2,920)

Cost of ending WIP $84,828 $54,972

Total=$84,828 +$54,972

Total=$139,800

(2700+320=3,020)

(2,700+160=2,860)

($11,040-$8,120=$2,920)

Cost of units transferred out

Material Conversion

Cost of beginning work in progress 8,120+ 2,920

Total=11,040

Cost incurred on remaining work in progress =(320×$25.40) + (160×$18.20)

Total =8,128+2,912

Total =$11,040

Cost of unit started and completed during the month=(2,700×$25.40) (2,700×$18.20)

Total=68,580+49,140

Total=117,720

Cost of the units transferred to the next department =$11,040+$11,040+117,720

Cost of the units transferred to the next department =$139,800

Learn more here:

brainly.com/question/17968397

6 0

2 years ago

Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $61 per bond and classified the investment as securities

Pavel [41]

Answer:

Explanation:

In this question ,we take the difference of the per bond value based on the year. The computation is shown below:

During 2015 to During 2017:

= Number of bonds purchased × (December 31, 2017 value - 2015 value)

= 10,000 × ($92 - $61)

= 10,000 × $31

= $310,000

During 2018:

= Number of bonds purchased × (December 31, 2018 value - 2017 value)

= 10,000 × ($146- $92)

= 10,000 × $54

= $540,000

So, the total amount would be

= $310,000 + $540,000

= $850,000

This amount which reflect in the income statement as a realized gain

6 0

3 years ago

If you plan to take money out of the bank frequently, what type of account should you get? A. A savings account B. A checking ac

kvasek [131]

B. Checkings Account

4 0

4 years ago

Read 2 more answers

The place and time period of the first few years of most people's lives have a great effect on the formation of values.

Goryan [66]

The value is formed by the the particular belief related to an idea or behaviour.

Explanation:

The values are the principles, standards or qualities of an individual or group of people hold. They are our own words, thoughts or actions. It is very important because they helps us to grow and develop. the decisions are made based on the values and beliefs.

The values comes from various sources such as family, workplace, educational institution, music, media, technology, culture and so on.

The most important common values are integrity, respect, excellence, responsibility. The values mainly focuses on the person's behaviour and attitude in all situations.

3 0

4 years ago