Answer:
the depreciation expense for 2022 is $3,000
Explanation:
Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.
Depreciation Expense = (Cost - Residual Value) / Number of useful life
= ($81000 - $21000) / 5
= $12,000
The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.
However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.
It has been used for 3 months thus depreciation charge is :
Depreciation = 3/ 12 × $12,000
= $3,000
Answer:
The company's worth is $24,420,000 if it is financed entirely by equity
Explanation:
The value of the company if financed entirely by equity is the perpetual cash flows that can be derived from the company using the required rate of return on the company's un-levered equity at 15%.
Sales $18,500,000
Variable costs(70%*$18,500,000) ($12,950,000)
EBIT $5,550,000
tax at 34%(34%*$5,550,000) ($1,887,000)
Net income $3,663,000.
Company's worth= $3,663,000/15%
=$24,420,000
Answer: Sheldon focuses or specialize on running errands and Leonard in washing dishes;
they trade at 1 errand run per 20 dishes washed
Explanation:
Sheldon focuses or specialize on running errands and Leonard in washing dishes; thus this the individual specialization
they trade at 1 errand run per 20 dishes washed this is the terms of trade they both can agree on.
All consumers including banks, even retirees, are directly impacted by inflation in terms of their income, savings, and spending.
How Inflation affects retirees?
- When determining whether to boost the qualified retirement plan contribution limits or the monthly Social Security benefits, the federal government utilizes inflation as a baseline.
- Pensions, on the other hand, may or may not increase in value with inflation, and private businesses frequently have internal guidelines for how and when to make cost-of-living adjustments.
- The main worry for retirees is how inflation would influence their ability to spend their money on essentials like healthcare, travel, and recreation, all of which are expected to be more expensive during inflationary periods.
- To guard against rising prices, retirees can diversify their sources of income, manage their savings, and make prudent spending decisions.
How will inflation impact banks?
Central banks, including the Federal Reserve, may raise interest rates in an effort to reduce inflation if it is rising while the economy is expanding. Consumer borrowing may slow down as a result of higher interest rates as they take out fewer loans.
Learn more about Inflation with the help of the given link:
brainly.com/question/28190771
#SPJ4
Answer:
$3,500
Explanation:
Under variable costing method, product costs are calculated on variable manufacturing costs only.
Step 1 : Determine unit Product Cost
Product Cost = Variable Manufacturing Costs
= $ 35
Step 2 : Determine the units in Inventory
Units in Inventory = Opening Stock + Production - Sales
= 0 + 7,210 - 7,110
= 100 units
Step 3 : Determine Inventory value
Inventory value = Units x Cost per unit
= 100 units x $ 35
= $3,500
Conclusion :
the ending inventory of finished goods under variable costing would be: $3,500
