Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue
<h3>What is Interest?</h3>
This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.
Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.
Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.
Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.
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Answer:
The correct answer is E:
Much of the hope for continued improvement of the economy lies in the increase in consumer spending that is projected for.
Explanation:
i. Much of the hope (this is the main Subject of the conversation)
ii. for continued improvement (this is the Prepositional phrase. It modifies the noun “hope”)
iii. of the economy (this is a Prepositional phrase – it modifies the noun “improvement”)
iv. lies in the projection (This is the main Verb – “lies”)
v. of increasing consumer spending this year. (This is the prepositional phrase. It modifies the noun “projection”)
At first glance, it would appear that the positive experience that is anticipated is the projection.
<em>A projection (unqualified) in this case is an estimate of how a thing will be in the future.</em>
Having stated this, we see that it is more logical to hope for a positive experience that will occur than to just hope. Hence the hope is really in the increase in consumer spending not in the projection as a separate word.
(E) therefore is the Correct option because in this option that in this option “that” modifies “increase”.
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Answer:
Instructios are listed below.
Explanation:
Giving the following information:
Laptops:
Selling price= $1,600
Cost per unit= $800
Sale mix= 40%
Tablets:
Selling price= $850
Cost per unit= $350
Sale mix= 60%
The estimated fixed costs for the current year are $2,498,600
A) Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
Weighted average selling price= (1600*0.40) + (850*0.60)= $1,150
Weighted average variable expense= (800*0.40) + (350*0.60)= 530
Break-even point (units)= 2,498,600 / (1150 - 530)= 4,030 units
B) Laptops= 4030*0.40= 1,612 units
Tablets= 4030*0.60= 2,418 units
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Answer: assuming Given the pay rate $7.0 and hours worked is 30 hours
Gross earnings = 7 x 30 = $210
Compensation insurance = 2% x $210 = $4.2
state unemployment insurance = 4% x $210 = $8.4
total deductions = 4.2 + 8.4 = $12.6
net pay = 210 - 12.6 = $197.4
Explanation:
Gross earnings = the pay rate x hours worked
Compensation insurance = 2% of gross earnings
unemployment insurance = 4% of gross earnings
total deductions = Compensation insurance+unemployment insurance
net pay = Gross earnings - otal deductions