Answer:
The depreciation for 2014 is $6900
The depreciation for 2015 is $9300
Explanation:
Please see attachment .
The cost of equity is 10.6%.
<h3>What is the explanation?</h3>
The calculation of the question is shown as follows:
Cost of equity = Risk - free rate + (beta*market risk premium)
Cost of equity = 3.25% + (1.4* 5.25%)
Which is equal to 3.25% + (7.35%)
hence cost of equity is 10.6%.
<h3>
What are retained earnings?</h3>
Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.
To know more about retained earnings, visit:
brainly.com/question/13980094
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The complete question is:
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.
Based on the CAPM approach, what is the cost of equity from retained earnings?
Answer: External failure costs is one of the four major categories of quality costs that is particularly hard to quantify.
Explanation: Quality costs are costs that are associated with giving poor products or services. Since external failures are always changing and hard to clearly identify, it makes them harder to quantify as well.
Answer:
Revenue to be recognized in 2018 year is R83,000
Explanation: In an revenue transaction there five steps to recognizing it.
1. there must be a contract : a contract exist hence the training.
2. There must be performance obligation ( clear obligations to be done by both parties). Rachel will pay for the training pita will provide, Rachel will pay at the end of the year for the use of pita name n ongoing consultation.
3. The must be transaction price, fortunately for us each transaction has a stand alone price.
4.Allocate transaction price to performance obligation, each obligation has its stand alone price already, training = 83000, use and consulting = 38400.
5. Recognize revenue when performance obligation is satisfied and the only satisfied obligation in 2018 is training therefore revenue for 2018 year is 83000
