Answer:
The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery
Explanation:
Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.
The most common depreciation methods include:
- Straight-line.
- Double declining balance.
- Units of production.
- Sum of years digits.
Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.
Answer:
Explanation:
first will need to calculate the Fv future value of this CD
Fv = Pv ( 1 + R )^n n = 4 /12 = 0.333333, r, rate = 4.5/100 = 0.045
Fv = $ 630000 ( 1+ 0.045)^0.33333 = $ 639311.69
a) the current value at 5 % Pv = Fv / ( 1+r)ⁿ
Pv = $ 639311.69 / ( 1.05)^0.3333 = $ 628998.41
b) the current price at 4.25% = $ 639311.69 / ( 1.0425)^0.3333 = $ 630503.20
The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.
<h3>How are investment spending and interest rates related?</h3>
Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.
If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.
Find out more on interest rates at brainly.com/question/26540958.
Answer:
C. conservatism
Explanation:
The lower of cost or market basis of valuing inventories is an example of conservatism. This term refers to trying to anticipate possible future losses, instead of gains and making certain decisions in order to limit those losses. Which some decisions may include lowering costs and/or prices in order to sell more and cover those potential losses.
Answer:
Margin of safety = $300000
Explanation:
The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.
The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,
Margin of safety = 500000 - 200000 = $300000
