To
determine what the depreciation of an asset using straight line method, the
formula to be used is:
(Initial
cost of machine – salvage value) divided by estimated useful life
So in
this problem:
Initial Cost
- $135000
Salvage
Value – $15000
Estimated
Useful Life – 5 years
Plug that
in the formula
Annual
depreciation = ($135000 - $15000) / 5
= $120000/
5
= $24,000
The first
year depreciation for the machine is $24000 because the company bought it in
the beginning of the year. (So there is no need to divide this by 12 months)
To record
this:
Depreciation
Expense $24000
<span> Accumulated Depreciation $24000</span>
Answer:
9.98%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is a long term return which is expressed in annual term.
As per given data
Annual Payment = $500
Current price = $5,012
$500 payment each year for indefinite period of time is a perpetuity, value of perpetuity can be calculated as follow
Current Price = Annual Payment / Yield to maturity
Yield to maturity = Annual Payment / Current Price
Yield to maturity = ( Annual payment / Current price ) x 100
Yield to maturity = ( $500 / $5,012 ) x 100
Yield to maturity = 0.0998 x 100
Yield to maturity = 9.98%
Answer:
4,444.44 units
Explanation:
For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-
Selling price per unit = Sales ÷ Number of units sold
= $300,000 ÷ 5,000
= $60
Variable cost per unit = Total variable cost ÷ Number of units sold
= $180,000 ÷ 5,000
= $36
Increase in selling price = $60 × 5%
= $3
New selling price per unit = $60 + $3
= $63
New contribution margin per unit = New selling price per unit - Variable cost per unit
= $63 - $36
= $27
Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit
= ($90,000 + $30,000) ÷ $27
= $120,000 ÷ $27
= 4,444.44 units
Answer:
Quality of supervision
Explanation:
Herzberg's 2 factor theory included motivational factors and hygiene factors.
Motivational factors are those which enable an employees or a workers to contribute their best efforts with utmost efficiency.
Hygiene factors on the other hand convey to the contrary i.e such factors lead to a reduction in the productivity and efficiency of workers.
One of the hygiene factor specified by Herzberg is supervision as per which poor supervision or command leads to job dissatisfaction among workers.
An organization must eliminate hygiene factors so as the employees are motivated to work and contribute optimally towards attainment of organizational goals.
