Answer: $20000
Explanation:
Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.
Therefore, the payment that X Corp. can deduct in 2018 will be:
= $100,000 / 5
= $20000
Answer:
The maximum investment is $6,360.111
Explanation:
Giving the following information:
The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.
We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.
NPV=∑[Cf/(1+i)^n]
Cf= cash flow
<u>For example:</u>
Year 1= 500/1.05= 476.19
Year 3= 500/1.05^3= 431.92
Year 5= 1,000/1.05^5= 783.53
NPV= 6,360.111
The maximum investment is $6,360.111
Answer:
1. $13,500
2. $13,500
3. $336,500
Explanation:
1. Bad debt expense:
= Sales × Percent of sales uncollectible
= $900,000 × 1.5%
= $13,500
Therefore, the bad debt expense for the year 2019 is $13,500.
2. Allowance for Doubtful accounts = $13,500
3. For the end of 2019, what is the company's net realizable value:
= Accounts receivable - Allowance for Doubtful accounts
= $350,000 - $13,500
= $336,500
The most suitable mode of entry for Shiffon Electric into the European market will be through <u>acquisition</u>.
<h3>
What is an acquisition?</h3>
This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.
Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.
Read more about acquisition
<em>brainly.com/question/24519774</em>
The appropriate response is a Horizontal merger. An even merger is a merger or business union that happens between firms that work in a similar space, as rivalry has a tendency to be higher and the cooperative energies and potential picks up in piece of the pie are considerably more prominent for consolidating firms in such an industry.
