Answer:
(C) $200.00 gain
Explanation:
The gain or loss on sale of fixed asset is calculated as follows:
Gain\Loss = Sale Price - (Cost of asset - Accumulated Depreciation)
If the value is positive it is gain and if the value is negative it is loss.
Here, we are provided that cost of asset = $6,000
Accumulated Depreciation = $5,000
And selling Price = $1,200
Thus, Gain/Loss = $1,200 - ($6,000 - $5,000)
= $1,200 - $1,000 = $200
As the value is positive that is selling price is more than carrying value of the asset there is a gain of $200
Thus, the correct option is
(C) $200.00 gain
Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
Answer:
i think smart room key am i right
Answer:
The fixed cost at any level of activity is $48,000 while the variable cost per unit at any level of activity is $1.30
Explanation:
The total cost is a function of the fixed and variable cost. Whilst the fixed cost does not change at a certain range of activities level, the variable cost changes as the level of activities(units produced or sold).
Using the high and low levels of activities given, let the variable cost per unit be v and the fixed cost F
for the high level,
F + 90,000v = 165,000
For the low level
F + 40,000v = 100,00
Solving both equations simultaneously,
50,000v = 65,000
v = $1.30
F + 40,000($1.30) = 100,000
F = 100,000 - 52,000
F = $48,000
