Asset: 120,000
Year 1: estimated useful life of 10 years. residual value of 10,000
120,000 - 10,000 = 110,000 / 10 years = 11,000 annual depreciation.
Start of year 3.
estimated useful life of 4 years. residual value of 2,000
120,000 - 2,000 = 118,000 / 4 = 29,500 annual depreciation.
29,500 x 2 = 59,000
11,000 x 2 = 22,000
59,000 - 22,000 = 37,000
59,000 + 37,000 = 96,000 / 2 = 48,000 annual depreciation for year 3 and year 4.
Beginning Balance: 120,000
Less: Depreciation:
Year 1 11,000
Year 2 11,000
Year 3 48,000
Year 4 48,000 <u> (118,000)</u>
Residual Value 2,000
Answer:
The answer is expectancy.
Explanation:
Expectancy theory is a concept developed by Victor H. Vroom in 1964, where he postulated, that the strength an individual has in terms of his or her motivation to do an action, would appear when three components are satisfied to a certain value: expectancy, instrumentality, and valence. The question above is relevant to the expectancy component, which is detailed as the belief that an individual has regarding their efforts would result in the individual choosing to perform an action. In the case of Martha, she wasn’t sure that her efforts in trying to win the contract would lead to her 10% raise (outcome, a component of instrumentality), and thus, she decided not to try.
Are the sum of a company's profits, after dividendpayments, since the company's inception. They are also called earned surplus, retained capital, or accumulated earnings.
(EXAMPLE):
Let's assume Company XYZ has been around for five years. During this time, it reported the following net income:
Year 1: $10,000
Year 2: $5,000
Year 3: -$5,000
Year 4: $1,000
Year 5: -$3,000
Assuming Company XYZ paid no dividends during this time, XYZ's retained earnings equal the sum of its net profits since inception, or in this case, $8,000. In subsequent years, XYZ's retained earnings will change by the amount of each year's net income, less dividends.
The retained earnings statement summarizes changes in retained earnings for a fiscal period, and total retained earnings appear in the shareholders' equity portion of thebalance sheet. This means that every dollar of retained earnings means another dollar of shareholders' equity ornet worth.
A company's board of directors may apprompany's retained earnings when it want to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders and other circumstances may contractually require the board to do so. Appropriations appear as a special account in the retained earnings section. When an appropriation is no longer needed, it is transferred back to retained earnings. Because retained earnings are not cash, a company mayfund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.
Why its important
It is important to understand that retained earnings do not represent surplus cash or cash left over after the payment of dividends. Rather, retained earnings demonstrate what a company did with its profits.
Answer:B.dividing the cost budgeted for each activity pool by the estimated activity base for that pool.
Explanation: Product costing is a term used in Manufacturing to describe the process through which the total cost of Manufacturing a product is determined.
Activity based costing is a costing method that gives manufacturers the opportunity to cost the product by determining the cost of each activity involved in the Manufacturing process of that product.
ACTIVITY RATE IS EQUAL TO THE RATIO OF BUDGETED ACTIVITY COST OF THE COST POOL AND THE ESTIMATED OR BUDGETED ACTIVITY BASE OF THE COST POOL.