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NemiM [27]
3 years ago
11

At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was

allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2016, the estimates of useful life and residual value were changed to 20 years and $500,000, respectively.
What is depreciation on the building for 2016?
Business
1 answer:
klio [65]3 years ago
4 0

Answer:

Depreciation for the year 2016: $ 393,000

Explanation:

$9 million of the purchase price was allocated to the building.

straight-line method:

(acquisition - salvage value)/ useful life:

(9,000,000 - 1,000,000) / 25 = 320,000 depreciation per year

The building book value at the change of method:

9,000,000 - 320,000 x 2 = 8,360,000

As this change of method do not come from an error we do not adjust prior period. We just recalcualte the depreciaton:

(acquisition - salvage value)/ useful life:

(8,360,000 - 500,000)/20 = 393,000

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The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding a
kirill115 [55]

Answer: producer

Explanation: The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding all legal matters; and distributing the proceeds derived from receipts falls to the producer.

Skills expected from a producer are:-

Organization / Scheduling.

Budgeting.

Problem Solving skills.

Multitasking skills.

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6 0
4 years ago
Capital structure decisions include determining: Multiple Choice which one of two projects to accept. how to allocate investment
Serjik [45]

Answer:

The correct answer is how much debt should be assumed to fund a project.

Explanation:

The first thing that must be specified is that a company can be leveraged through debt, contributions from partners or equity, and that the relationship between these two variables will be the capital structure of the company. In addition, one could say that success comes with more certainty to a company that evaluates different possibilities in which these two forms of leverage come into play.

The term optimal structure, in finance, includes the close relationship that exists between the costs and benefits that may be the product of different forms of leverage. One of the points that financial advisors take into account to measure such relationship are the tax advantages that an entrepreneur can acquire when making financial decisions and the decisions he makes regarding the leverage he wishes to obtain.

The following are some of the aspects that are evaluated when looking for an optimal capital structure:

  • Financing costs can be high as a result of the company neglecting its good name before the financial sector; In case the company does not comply with the business hypothesis underway or has a bad habit of payment, it can lead to high interest rates and unfavorable conditions or, in the worst case, close the doors in the financial sector.
  • Having a good payment capacity and a good habit of timely payment will be key when requesting a loan, not only for obtaining the credit itself, but because you can obtain proposals from different financial institutions and take advantage of the best rates and benefits.
  • The portfolio purchase options are always a good ally to improve the cash flow of the organization, to take advantage of this it is necessary to evaluate the rate, term and additional conditions that this new financing includes.
  • The company must find that different transactions are not restricted in the contracts it makes with third parties. Having to subject the activity to the clauses imposed by suppliers or allies, can cause you to miss the opportunity to take advantage of other businesses.
  • The agency theory and the moral hazard problem is something that must be taken care of very carefully, since the level of autonomy that the administrator has in the company can jeopardize the offer of value that the investor expects to receive. There have been cases in which the bad decisions of the administration, whether due to errors or fraud, have caused bankruptcy cases or penalties.

In reality, an optimal capital structure is found when investors obtain a significant value offer, that is, that the earnings per share –UPA– are greater, and when financial leverage is used without exceeding market risk levels, but it should also be clarified that all this varies according to the economic conditions of the country and the sector in which the company is located. Finally, it goes without saying that supporting the evaluation of decisions through different financial indicators makes it possible to make a more accurate decision in all cases.

4 0
3 years ago
Due to inflation and shortages created by supply chain shortages, the price of Paco Rabanne's Eau de Toilette Spray increased
Darya [45]

The sales of Paco Rabanne's Eau de Toilette Spray would fall by 11.25%.

<h3>What is the price elasticity of demand?</h3>

The price elasticity of demand measures the impact of price changes on the quantity demanded of good. When t the price elasticity of demand is less than 1, demand is inelastic.

Percentage change in the quantity demanded = price elasticity x percentage change in price

12.5% x 0.9 = 11.25%

To learn more about supply elasticity, please check: brainly.com/question/26634801

5 0
2 years ago
When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using :A. co
anygoal [31]
I think it’s B ........ I could be wrong tho
8 0
3 years ago
Does gross profit take into account taxes
Zepler [3.9K]
No, it doesn't. Gross profit is revenues (sales) minus cost of goods sold.
3 0
4 years ago
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