The working equation for double declining method is:
Depreciation = (Cost - Accumulated Depreciation)×2/Useful life
So, the solution would be:
Year 2016
Depreciation = ($84,000,000 - 0)×2/25 = $6,720,000
Year 2017
Depreciation = ($84,000,000 - $6,720,000)×2/25 = $6,182,400
Year 2018
Depreciation = ($84,000,000 - $6,182,400)×2/25 = $6,225,408
Answer:
2021 2022
Beginning inventory $20,730 $28,010
Cost of goods purchased <u>$150,450</u> <u>$174,240 </u>
Goods Available for sale $171,180 $202,250
Less :Ending Inventory <u>$28,010 </u> <u>$40,660</u>
Cost of goods sold <u>$143,170</u> <u>$161,590</u>
Note: The ending inventory of 2016 will become beginning inventory of 2017.
Answer:
PE ratio is 1
Explanation:
Price earning ratio determines the ratio of price of a share by the earning per share . It measures the times value which a investor pays for each $1 earning of the shares.
To calculate the price earning ratio at the end of the year, we will use the price of the share at the end of the year.
Price Earning Ratio = Market Price / Earning Per share
Price Earning Ratio = $5 / $5
Price Earning Ratio = 1 times
Answer:
a more personal relationship between the buyer and seller than in B2C markets
Explanation:
B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.
B2B (business-to-business) model focuses on facilitating sales transactions between businesses.
Under the B2B, the producer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.
On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.
The nature of B2B markets requires a more personal relationship between the buyer and seller than in B2C markets.
Answer:
O Compound interest pays interest both on the principal and the interest earned in each period.
Explanation:
Compound interest is preferred as it measures the interest on the principal amount and the accrued interest. In the compounding interest, the interest i.e. earned should be added to the principal in order to create the new principal amount. The interest earned at the closing of every year should be more than the last period as the principal amount rises at the starting of the period
Also, the interest earned via the compound interest should be grown much faster as we compared to the fixed rate interest
Therefore the last option is correct