Answer:
Depreciation expense= $7,612.5
Explanation:
Giving the following information:
Purchase price= $66,000
Salvage value= $5,100
Useful life= 8 years
<u>First, we need to determine the depreciation expense for the whole year. We will use the following formula:</u>
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Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(66,000 - 5,100) / 8]
Annual depreciation= $15,225
<u>For 2020:</u>
Depreciation expense= (15,225/12)*6= $7,612.5
Answer: In year three the preferred stockholders would receive $7,000 and the common stockholders would receive $25,000.
Explanation: Preferred stockholders are always paid before common stockholders. Since this stock in cumulative it means that when there is not enough income in one year to pay the preferred stock then the company needs to pay them when they have the money in the future.
In this case the preferred stock is 5% of $100 par value and is cumulative. This means that every year the company needs to pay 5% times $100 par value on each stock, and there is 1,000 shares, so the total is $5,000 in preferred stock dividends.
In year one and two they did not declare enough dividends to pay this full amount. In year one they declared $2,000 and year two they declared $6,000. At the end of year two they should have received $10,000, but only received $8,000. In year three they need to pay the preferred stockholders the $2,000 that are in arrears, plus the $5,000 for year three, for a total of $7,000. Since there was $32,000 in dividends declared and $7,000 is going to the preferred stockholders, it means that there is $25,000 left for the common stockholders. $25,000/10,000 shares equals $2.50 dividend per share.
Answer:
Ending WIP= $13,500
Explanation:
<u>First, we need to calculate the factory overhead:</u>
Factory overhead= 25,000*0.75= $18,750
<u>Now, the ending WIP inventory:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
68,250 = 11,000 + 27,000 + 25,000 + 18,750 - Ending WIP
Ending WIP= $13,500
Answer:
To insure bank deposits.
Explanation:
After the great depression the FDIC was created to insurance bank deposits and to give stability and security to the financial system
Answer:
$6,000
Explanation:
A deductible is the amount Conor has to pay before his medical bills and prescriptions start getting coverage from his insurance.
Step 1: 10,000 - 2,000 = 8,000
A co-pay is a fixed amount the insured has to pay for certain medical services.
Step 2: 20% of 8,000 or 0.20 times 8,000 = 1,600
Step 3: add $2,000 (the deductible you have to pay) and $1,600 (the co-pay)
Total amount that Conor will have to pay for the hospital: $3,600
