Answer:
$4,580 and $4,580
Explanation:
The depreciation expense computation for the first and second year under straight line method is as see below;
= Original cost - Residual value / Useful life
= ($27,200 - $4,300) / 5yrs
= $22,900 / 5yrs
= $4,580
With regards to using the straight line method, the depreciation value is the same for all the remaining useful years.
It therefore means that for the first and second year, the same depreciation value of $4,580 should be charged distinctly for each year.
Answer:
15.36 percent.
Explanation:
WACC= We * Ke + Wd * Kd
Where,
We = Weight of equity
Wd = Weight of debt
Ke = Cost of equity
Kd = Post tax cost of debt = 6.1%
0.124 = (1/1.47)(x) + (0.47/1.47)(0.061)
The right hand side of the equation was solved using the Least common factor method.
O.124 =( X + 0.02867)/1.47
0.124 x 1.47 = X + 0.02867
0.18228 - 0.02867 = X
0.15361 = X
0.1536 × 100
= 15.36
Answer:
1) total cost $3,209,909
<u><em>journal entries:</em></u>
copper deposit 3,209,909 debit
cash 2,800,000 credit
restoration liability 409,909 credit
Explanation:
mine deposit: 2,000,000 land
+ 800,000 extraction
<u> + 409,909</u> restoration cost
3,209,909 total cost
expected monetary value of the restoration cost:
![\left[\begin{array}{cccc}$Electrical&Return&Probability&Weight\\$One&500,000&0.25&125,000\\$Second&600,000&0.4&240,000\\$Third&800,000&0.35&280,000\\$Total&&1&645,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24Electrical%26Return%26Probability%26Weight%5C%5C%24One%26500%2C000%260.25%26125%2C000%5C%5C%24Second%26600%2C000%260.4%26240%2C000%5C%5C%24Third%26800%2C000%260.35%26280%2C000%5C%5C%24Total%26%261%26645%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
<em><u>preset value of restoration cost:</u></em>
Maturity $645,000.00
time 4.00
rate 0.12000
PV 409,909.1606
Answer:
c. $0.70.
Explanation:
The consumer surplus is determined by subtracting Equilibrium price from willing price
Here there are 3 willing prices which are greater than Equilibrium price. The price to buy the forth can is $0.40 which is below the equilibrium price of $0.55, so he will not buy the forth can.
Willing price for first can (W1) = $0.95
Willing price for second can (W2) = $0.80
Willing price for third can (W3) = $0.60
The Equilibrium price (E) is $0.55
Consumer Surplus = (W1 - E) + (W2 - E) + (W3 - E)
Consumer Surplus = ($0.95 - $0.55) + ($0.80 - $0.55) + ($0.60 - $0.55)
Consumer Surplus = $0.40 + $0.25 + $0.05
Consumer Surplus = $0.70.
Cultural mores, are unwritten social expectations that are deeply ingrained into a culture