Answer:
Please check the following explanation
Explanation:
Capital losses are not included in the calculation of net investment income. Therefore, $2,000 long-term capital loss would have no effect on investment income. Thus, Porters' investment income will remain $2,500.
Consequently, Porters' can deduct $2,500 of the investment interest expense and the remaining $500 of investment interest expense will be carried over to next year.
Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.
Answer:
The correct answer is letter "A": operating activities.
Explanation:
Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.
When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Answer and Explanation:
The Journal entry is shown below:-
Cash Dr, $604.80 ($640 × 5.5%)
Card Expense $35.20
To Sales $640
(Being sale is recorded)
Here we debited the cash and expenses as assets are increasing also it increased the expenses On the other hand it also increased the sales. Also assets and expenses contains normal debit balance and the sales revenue contains normal credit balance
B.) It is known as EQUILIBRIUM CONSTANT.
