Answer:
B. $275,000
Explanation:
The second machine will be depreciate over time as it can later be used for operational purposes or another research projects. The first, as can only be used for a research project It should be considered expenses for the entire amount regardless of the useful life.
Machine B useful life 10 years
depreciation expense: cost / useful life
250,000 / 10 = 25,000
machine A 250,000 + 25,000 depreciation for machine B = 275,000 total
Answer: CONVERTIBLE BONDS
Explanation: In simple words, convertible bonds refers to those fixed assets securities that could be converted into common stock on the discretion of the bondholders.
Such kind of securities is usually used by companies who are new to the market and wants to attract investors with maximum security of bonds as initial investment and maximum potential benefit as an option of converting bonds into common stock.
These types of bonds offer lower interest rates due to the embedded option of conversion.
This kind of person in business terminology is called a free rider.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Cash shorting = 36,010 - 36,006 = $4
DR Cash $36,006
Cash Short and Over $ 4
CR Sales $36,010
There is a shortage of cash as the sales figure is more than the cash amount. The Cash Short and Over account will therefore be debited to reflect this expense.
