1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andre45 [30]
3 years ago
13

Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space

. These improvements are expected to yield benefits for 8 years. Phoenix has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.
$8,125.

$13,000.

$6,000.

$65,000.

$20,000.
Business
1 answer:
Daniel [21]3 years ago
4 0

Answer:

correct option is $13,000

Explanation:

given data

leases office = $7,000 per month

Phoenix incurs = $65,000

yield benefits = 8 years

remaining on its lease = 5 years

solution

we know that The cost of leasehold improvement is depreciate whichever is less    

(a)  Remaining Lease Term      

(b) estimated useful life of improvement

so Annual depreciation of Leasehold Improvement will be here

Annual depreciation of Leasehold Improvement = \frac{65000}{5}

Annual depreciation of Leasehold Improvement = $13,000

so correct option is $13,000

You might be interested in
ANSWER ALL MULTIPLE CHOICE QUESTIONS 1. The index used to measure inflation is the a. consumer price index. b. producer price in
9966 [12]

Answer:

15

Explanation:

15151515151515152515255151251512512

5 0
2 years ago
Suppose that the Federal Reserve has set the required reserve ratio at 0.20 (that is, 20%). Second Republic Bank currently has $
Aliun [14]

Answer:

Reserves = $105,000

Required reserve = $30,000

Excess reserve = $75,000

Explanation:

Given:

Required reserve ratio = 0.20

Check able deposit = $150,000

Outstanding loans = $45,000

Computation:

Reserves = Check able deposit - Outstanding loan

Reserves = $150,000 - $45,000

Reserves = $105,000

Required reserve = Check able deposit[Required reserve ratio]

Required reserve = $150,000[0.20]

Required reserve = $30,000

Excess reserve = Reserves - Required reserve

Excess reserve = $105,000 - $30,000

Excess reserve = $75,000

3 0
3 years ago
What is most often the basis for racist behavior in the United States? A. ignorance about other races B. superiority of certain
Burka [1]

B. Superiority of certain races. Which often results in discrimination and prejudice towards people based on their race or ethnicity

7 0
2 years ago
Read 2 more answers
Declining transport rates per unit of weight as the weight shipped increases represents ______.
Likurg_2 [28]

Answer: economy of scale

Explanation:

8 0
1 year ago
Toby’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is
statuscvo [17]

Answer:

a. Toby is not maximizing his utility

b. Toby should reduce his spending on cashew and increase his spending on peanuts.

Explanation:

a. Is Toby maximizing his total utility from the kinds of nuts? If so, explain how you know.

Toby will maximize his utility when we have:

MUp/Pp = MUc/Pc

Where;

MUp/Pp = Marginal utility of peanut divided by price of peanut = 100/10 = 10

MUc/Pc = Marginal utility of cashew divided by price of cash = 200/25 = 8

From the above, Toby is not maximizing his utility. I am able to know this because MUp/Pp > MUc/Pc (i.e. 10 > 8). An Toby will only maximize his utility when MUp/Pp = MUc/Pc.

b. If not, how should he rearrange his spending?

Since MUp/Pp > MUc/Pc (i.e. 10 > 8), Toby should reduce his spending on cashew in order to increase MUc and increase his spending on peanuts reduce MUp until MUp/Pp = MUc/Pc.

3 0
3 years ago
Other questions:
  • Kansas Company acquired a building valued at $162,000 for property tax purposes in exchange for 12,000 shares of its $3 par comm
    15·1 answer
  • Asking "Who would buy my product?" in a survey is an example of what?
    15·2 answers
  • Greer Company developed the following data for the current year:
    7·1 answer
  • 1. WHAT IS TIME MANAGEMENT TO YOU AND WHY WOULD YOU MANAGE YOUR TIME BETTER?<br> EXAMPLE?
    5·1 answer
  • Individuals who pay less of their own health care costs may have an incentive to use health care resources more frequently and t
    6·1 answer
  • An Economy That Is Neither Growing Nor Shrinking Is Said To Be In A Period Of
    12·1 answer
  • Assume you deposit $5,000 at the end of each year into an account paying 9.5 percent interest. a. How much money will you have i
    6·1 answer
  • Your supervisor constantly gets on you for things that you feel aren't your fault. Every other day , they approach you about wor
    14·1 answer
  • What are the benefits and advantages of members when joining organizations like UNWTO, PATA, or ASIANTA?
    6·1 answer
  • When four infineon technologies executives participated in an international conspiracy to fix prices for computer memory chips,
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!