Answer:
B. 03/10/2018
Explanation:
The date placed in service is 03/10/2018 since this was the date that this trailer or machine was delivered for use according to the question.
The date in service can be defined to be the date that an inventory item such as this machine was made available for service or in other words made available for use. We use this date to calculate the depreciation on the serial inventory.
Answer:
Dept. D = 80%
Dept. E = $12
Dept. K = $6
Explanation:
The computation of the predetermined overhead rate for each department is shown below:-
Department D = Manufacturing overhead ÷ Direct labor costs
= $1,240,000 ÷ $1,550,000
= 80%
Department E = Manufacturing overhead ÷ Direct labor hours
= $1,500,000 ÷ 125,000
= $12
Department K = Manufacturing overhead ÷ Machine hours
= $720,000 ÷ 120,000
= $6
Answer:
Since this whole sales agreement is about a car, then it falls under the statute of frauds. Any sales contract or offer for any amount of $500 or more needs to be signed. We are not told the final price of the car, but if we consider that only the discount was $500, then we can assume that the price of the car was higher than that. Since the note was not signed, then the promise is not valid.
Answer:
cash flow = - $780000
Explanation:
given data
2017 debt = $2.6 million
2018 debt = $3.75 million
interest expense = $370,000
to find out
What was the firm's cash flow to creditors
solution
first we get net new debt that is express as
Net new deb = 2018 debt - 2017 debt .....................1
Net new debt = $3.75 million - $2.6 million
Net new debt = $1.15 million
so
cash flow to creditors will be here as
cash flow = Interest expense - Net new debt .............2
cash flow = $370,000 - $1.15 million
cash flow = - $780000
Answer:
The Answer is as follows;
Explanation:
Dividend on preferred stocks=$10*7.5%=$.075
Transaction Costs=$1
Total financing Cost=$1.75
Which is 17.5% (1.75/10)
The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.
