Answer:
Option E. CREDIT to Accumulated Depreciation for $9,000
Explanation:
The formula to compute depreciation expense is given as under:
Depreciation Expense = (Cost - Scrap Value) / Useful Life
By putting values we have:
Depreciation Expense = (100,000 - 10,000) / 10 Years = 9,000 per year
The double entry for the year 2 would be:
Dr Depreciation Expence 9,000
Cr Accumulated Depreciation 9,000
Starting a business out of necessity reffers to making a decision based on specific criteria that has an affect on a certain number of people. In this situation, a person is making the decision they feel is best based on information collected and parts of an oganization that needs to be changed. It's imparative to do your research and decided what and why things need to change and the best way to acheive success in doing so.
Answer:
Dividends are fixed. ⇒ Consistent with Debt
Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.
Usually has no specified maturity date ⇒ Consistent with Equity.
Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.
Cost of preferred stock.
Preferred stock is like a perpetuity. The cost of preferred stock is therefore:
= Constant dividend / Price of stock
= 13 / 130.45
= 9.97%
= 10%
False. It does not reduce market risk.
B.
It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.
