Answer: $47 million
Explanation:
Pension expense arises as a result of the amounts owed to employees in relation to pension liabilities.
It is calculated by;
= Service Cost + Interest expense - Expected return on plan assets + Amortization of prior service cost + Amortization of net loss
= 48 + ( 440 * 5%) - 23
= $47 million
Answer:
9,792 total interest expense
Explanation:
face value 96,000
issued at 94,080
<em>discount 1,920</em>
<u><em>amortization of the bond:</em></u>
discount/total payment
10 years atsemiannual payment = 20 payment
1,920/20 = 96
<u><em>cash proceed:</em></u>
96,000x 10%/2 = 4,800
discount 96
<u>interest expense 4,896 per payment</u>
2 payment per year 9,792 total interest expense
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crucial to understanding firms and market structures
Answer:
The correct answer is ) constant returns to scale.
Explanation:
Because in the long term there are no more fixed inputs, the distinction between variable and fixed inputs disappears and there are no CFT or CVT curves. In reality, it is only necessary to look at the nature of the shape of the average cost curve in the long term. Suppose that technological constraints allow a company to choose between the construction of three plants of different sizes: small, medium and large.
This line is called the average long-term cost curve (CPLP) and shows the minimum unit cost for any production when all inputs are variable and it is possible to build all plant sizes. The dashed lines of the CPCP curves always correspond to higher costs for each production than can be obtained with plants of other sizes.
Obviously, the final choice will depend on market demand and consumer demand trends, generally favoring larger plants in future proposals. Otherwise, the medium plant will be the most attractive, due to its lower investment requirements. Usually the firm will have more than 3 sizes to choose from. When this number tends to infinity, the CPLP curve encloses the CP curves and is tangent to them.
Answer:
The company should recognize a gain on disposal of $29500
Explanation:
The straight line depreciation method charges a constant depreciation expense per year through out the estimated useful life of the asset.
The straight line depreciation expense per year is,
(Cost - salvage value) / estimated useful life
Depreciation expense = (910000 - 0) / 8 = $113750
The number of years till 31 December 2013 = 6 years
The accumulated depreciation till December 31, 2013 = 113750 * 6 = $682500
The carrying value of the asset at 31 December 2013 = 910000 - 682500 = $227500
The gain/loss on sale = 257000 - 227500 = $29500 gain
