Answer:
the store rent that should be allocated in department 3 is $100000
Explanation:
if we assume that we charge the rent per square feet occupied, then we can say
department rent = charge per square feet* number of square feets
r = k*sf
also if
total rent = rent department 1 + rent department 2 + rent department 3
r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)
k= r total / ( sf1 + sf2 + sf3)
replacing values
k = $200000/(15000 sq.ft + 10000 sq.ft +25000 sq.ft ) = $ 4 per sq.ft
thus for department 3
r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000
rent department 3 = $100000
Answer:
Explanation:
FASB amended the rules to improve the comparability of the information about business combinations provided in financial reports. A variable interest entity is a legal business.
The Financial Accounting Standards Board issued SFAS 141(R) in 2007 December, to substitute the SFAS 141. Evaluating the comment letters, articles and industry publications, they analyzed issues that were with SFAS 141 from the perspective of professionals, users and the FASB; it was evaluated 141(R) to ascertain these weaknesses and they were corrected with solutions been profound in 141(R).
Answer: All three methods result in the same amount of total depreciation
Explanation:
Depreciation is when the value of an asset has been reduced because the asset has been used or due to wear and tear.
When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total depreciation is the straight line method, the double declining balance method, and the activity method.
Therefore, option the answer will be that "all three methods result in the same amount of total depreciation". This is because the amount charged for depreciation can not exceed the cost involved and will be identical for the three methods
Answer:
Net income will be $160000
So option (c) will be the correct answer
Explanation:
We have given debt common stock = $680000
Credit liabilities = 350000
Credit paid in capital = 190000
And excess of par 30,000 credit Assuming the only changes in retained earnings
So 680000 = 350000+190000+30000+ retained earning
So retained earning = $110000
Dividend paid = $50000
So net income = dividend paid + retained earning = $110000+$50000 = $160000
So option (c) will be the correct answer
Answer:
.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment
Explanation:
ROE means return on equity
ROE = Net income / shareholders equity
A project should be undertaken if the ROE of the project is greater than the cost of equity
