Answer:
1. $425,000
2. 10.49%
3. 1.25
4. 13.11%
Explanation:
The computations are shown below:
1. For Average operating assets
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= (390,000 + 460,000) ÷ 2
= $425,000
2. For margin:
= Net Operating Income ÷ Sales × 100
= $55,750 ÷ $531,250 × 100
= 10.49%
3. For turnover:
= Sales ÷ Average Operating Assets
= $531,250 ÷ $425,000
= 1.25
4. For return on investment:
= Net Operating Income ÷ Average Operating Assets
= $55,750 ÷ $425,000
= 13.11%
Answer:
$40,000
Explanation:
Maximum amount of cost that can be deducted is full amount of $40,000. The maximum amount that can be claimed as bonus depreciation is the cost of the asset under consideration. The percentage of claim might be different and applicable according to announced by the Tax department, but the total amount that a person can claim as Depreciation Bonus is the Total cost of that asset.
Answer:
It is a relatively easy method to apply.
Explanation:
When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.
But here, the parent company uses, initial value method for internal reporting.
Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.
There is no statutory requirement to follow such initial value method for internal reporting.
The correct reason therefore, is:
It is a relatively easy method to apply.
The real exchange rate is 1 dollar = 2 Argentine pesos
The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:
- 1 Dollar is equivalent to 4 Argentine pesos
However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:
- 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.
In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.
Learn more in: brainly.com/question/15169469
Answer: See explanation
Explanation:
Debt = 0.65
Weight = 39.39%
Cost for debt = 2%
Product = 39.39% × 2%
= 0.3939 × 0.02
= 0.007878
Equity = 1.00
Weight = 60.61%
Cost for equity = 6%
Product = 60.61% × 6%
= 0.6061 × 0.06
= 0.036366
Weighted average floatation cost:
= 0.007878 + 0.036366
= 0.044244
= 4.42%
The true cost of the building will then be:
= Funds needed / (1 - Floatation cost)
= $43,000,000 / (1 - 0.044244)
= $43,000,000 / 0.955756
= $44,990,562
