Answer:
January 1, 2016:
Dr Accumulated Depreciation account 12,000
Cr Cash account 12,000
Explanation:
The accumulated depreciation account is a contra asset account used to record all the incurred depreciation expense since the asset (or assets) was being used or put into service.
Since the repairs extended the life cycle of the asset, then its accumulated depreciation decreases.
Answer:
The main conflict that results between planning and control use of budgets is that managers might place their own personal interests before the interests of the company. This might result in budgets that are easily achievable (resulting in bonuses) or shifting income from one period to another in order to achieve certain budgets that will result in bonuses.
I will use a real life example that happened to me to explain this. I worked as a B2B sales representative for a large corporation (we were only 2 B2B salespeople + 1 manager) and when sales were slowing down, upper management would set up bonuses for achieving certain sales goals. The problem was that intentionally certain large sales that required management's approval were delayed and total sales would fall. Then suddenly the bonus show sup and all the large sales were approved and in two weeks the sales goals were achieved. Since B2B sales are not about selling to a lot of customers, but instead selling to the right customers a lot of products, a couple of delayed big sales made a huge difference and a 1% bonus meant changing your old car for a new one.
Stan and Tammy will share the estate in equal shares. You are able to have as many beneficiaries as you name, due to this and no change in the first will, both will be heirs to the estate. If Ruth were to have revoked the first will, then it would have left Tammy the sole beneficiary.
Answer:
payback 2.5 years
Explanation:
the payback will be the point in time at which the project cash flow equal the invesmtent.
This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.
investment: 5,000
increase in cash-flow 2,000
Investment/cash flow = 5,000 / 2,000 = 2.5 years
The depreciation are not considered as this are not cash flow.
