The change in accounting estimates such as the life and residual value of a depreciable asset should be applied prospectively. During years 1 & 2, the depreciation is $4,000. However, at the end of year 2, the life of the asset was changed to 6 years and residual value is reduced to $1,200.
Thus, the depreciation starting year 3 is $2,450 computed as:
Cost of asset $19,000
Less: Depreciation (2 years) 8,000
Book Value $11,000
Divide by remaining life 4 years
Depreciation $2,750
Answer:
C. 7.18%
Explanation:
Formula for calculating growth rate
= (Current amount/initial amount) ^ 1/n - 1
Given that
Initial amount = 15000
Current amount = 60000
n = 20
Therefore,
Growth rate = (60000/15000)^1/20 - 1
= (4)^1/20 - 1
= 1.07177 - 1
= 0.07177
To percentage we multiply by 100
So,
= 0.07177 × 100
= 7.177%
Approximately
= 7.18%
Answer:
The principle in Law 'Nemo dat quod non habet' states that an individual connot give what he does not have
Indeed Tom can rescind the contract with Matthew as he possesses voidable title to the balls
Explanation:
Until consideration has moved from Matthew to Tom the validity of the agreement/Contract remains inconclusive.
Considering his Account is not funded means he has no valid title to the Balls, he is merely in possession of the Balls but not the Owner.
Tom can sue demanding a return of the Balls irrespective of Matthew having sold them to Aaron.
Another illustration could be given of a thief who sells off a property. Inspite of the Buyer being unaware, because the thief has a voidable title it makes the transaction invalid.
Answer: In a market with positive externalities, <u>"C. the efficient level of production is more than what competition will obtain.".</u>
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Explanation: An externality is a situation in which the costs or benefits of production or consumption of some good or service are not reflected in its market price. A positive externality is the positive effect of an activity imposed by an unrelated third party.
