Answer:
- Purchase of large-scale machinery to mold each case.-<u> Major Equipment
</u>
Major equipment are large scale type assets.
- Purchase of cleaning fluids for maintaining manufacturing equipment - <u>Supply </u>
Supply goods are bought to enable the company maintain their equipment.
- Purchase of accounting services for tax preparation - <u>Business Service</u>
They are services purchased to maintain the business.
- Purchase of bulk plastics to be molded into cases - <u>Raw Materials</u>
These are the commodity goods that will be used to make finished products.
- Purchase of multifunction laser printers for office use - <u>Accessory Equipment </u>
Accessory equipment are light in nature but are still needed to help in the operations of the business.
- Purchase of leather straps to be fastened to finished cases - <u>Component Part</u>
- Purchase of plastic glues to attach decorations to finished cases - <u>Process Material</u>
These are products that will be used in the production process.
<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
Cash inflow during Year 3 = $6980
Cash inflow during Year 4 = $2750
Discount rate = 12.5%
NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
Answer:
The Journal entries are as follows:
(i) On January 1, 2017
Plant Assets A/c Dr. $600,000
To cash $600,000
[To record the depot]
(ii) On January 1, 2017
Plant Assets A/c Dr. $41,879
To To Asset retirement obligation $41,879
[To record the Asset retirement obligation]
Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.
Answer:
Personal Pros & Cons
Explanation:
To become a whistleblower in this situation, you might want to stay anonymous when reporting the situation. By staying anonymous you can report this situation without being worried that this HR director will know. But, if you don't want to become the whistleblower someone else might report them and you'll be out scot-free. But in the chance, someone doesn't, then you might feel guilty for not reporting this issue.
Answer:
Markets regulate transactions.
