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3 years ago

_________ is the incremental cost of wear and tear on an asset.

Business

2 answers:

bogdanovich [222]3 years ago

6 0

The correct answer is DEPRECIATION.

Depreciation is defined as the incremental cost of wear and tear on an asset.

Depreciation is an accounting concept that allows a business or individual to allocate the cost of a capital item over the useful life of the item.

valkas [14]3 years ago

3 0

Hello

Depreciation is the incremental cost of wear and tear on an asset.

Thanks

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Broadway Corporation was granted a patent on a product on January 1, 2007. To protect its patent, the corporation purchased on J

Karolina [17]

Answer

The answer and procedures of the exercise are attached in image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

4 0

3 years ago

During 2017, Windsor Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (Windsor’s

Illusion [34]

Answer:

Description 2017 2016 2015

Net Income $146,402‬ $107,281‬ $123,114‬

Explanation:

The question is to compute a statement of income comparative figures. The step is therefore to use the weighted average pricing method to replace the historical income before taxes for both years 2016 and 2015. After this is done, we then re-calculate the appropriate taxes and arrive at the net income.

Description 2017 2016 2015

Income before taxes 206,200 151,100 173,400

Subtract: Income tax @29% 59,798‬ 43,819‬ 50,286‬

Net Income 146,402‬ 107,281‬ 123,114‬

5 0

3 years ago

Merger Co. has 10 employees, each of whom earns $1,700 per month and has been employed since January 1. FICA Social Security tax

andriy [413]

Answer:

Date Description Debit Credit

March, 31 Payroll Tax expense $‭2,320.5‬0

FICA Social Security taxes $1,054

FICA Medicare taxes $ 246.50

FUTA taxes $ 102

SUTA taxes $ 918

<u>Working </u>

FICA Social Security taxes = 1,700 * 10 * 6.2% = $‭1,054‬

FICA Medicare taxes = 1,700 * 10 * 1.45% = $‭246.5‬0

FUTA Taxes = 1,700 * 10 * 0.6% = $‭102‬

SUTA Taxes = 1,700 * 10 * 5.4% = $‭918‬

Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $‭2,320.5‬0

7 0

3 years ago

Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is

Snezhnost [94]

Answer:

Pretax = 5.61%

After tax = 4.26%

Explanation:

The cost of debt will be the Yield to maturity of the bonds.

91 = present values of the 25 year annuity + present value of the maturity

There is no formula for exact YTM

we can either use excel or calculate by approximation:

In this case we will calcualte the YTM by aprroximation

$YTM = 2\times (\frac{C + \frac{F-P}{n }}{\frac{F+P}{2}})$

C= 25 cuopon payment 1,000 x 5% / 2 becayse paymenr are semiannually

F= 1000 the face value is 1,000

P= 910 the present value or market value is 91% of the face value

n= 50 25 year at 2 payment per year

$YTM = 2 \times (\frac{25 + \frac{1000-910}{50 }}{\frac{1000+910}{2}})$

dividend 26.8

divisor 955

YTM 5.6125654%

This will be the pretax cost of debt

then we calculate the after tax cost of debt

pre-tax cost of debt ( 1 - t ) = after-tax

5.61% ( 1 - .24 ) = 4,2636

6 0

3 years ago

A monopolist faces a demand curve given by: P = 220 – 3Q, where P is the price of the good and Q is the quantity demanded. The m

Montano1993 [528]

Answer:

$1350

Explanation:

To find dead weight loss we will take into consideration the price and output level of both monopoly and perfect competition.

Dead weight loss = {(P2 - P1) * (Q1-Q2)} / 2

Where, P2 and Q2 are price and quantity respectively of monopolist and P1 and Q1 are price and quantity respectively of perfect competiton.

Dead weight loss = {(130-40) * (60-30)}/2

= (90*30)/2

= $1350

8 0

3 years ago