Business College
Answers
Answer 1
Answer: Positive Theory of law
Explanation:
The legal theory that Lion King Inc. will use in court is the positive Theory of law.
It should be noted that positive theory of law helps in the protection of individual rights, used in settling dispute and also used in the maintenance of order in the society.
Therefore, Lion King can used this in settling the dispute with Simba.
Answer 2
The Legal Theory Lion King Inc. will use in court the theory of positive law, which is used to maintain social order, resolve civil disputes, and protect the rights of individuals and governed through laws enacted by the state.
In the theory of positive law, it is governments who create and enact laws so that there is a regulation of human behavior and actions, in favor of justice and protection of the rights and duties of citizens.
Therefore, Lion King Inc. will use positive law theory to resolve the dispute with former employee Simba. This case will be judged according to the law in force at that location regarding the lack of formal contract and labor rights.
Find out more information on positive law theory here:
https://brainly.com/question/11269331
Related Questions
3) Assume you decide you should invest at least part of your money in large capitalization stocks of companies based in the United States. What are the advantage and disadvantages of choosing the Bledsoe Large company stock fund compared to the Bledsoe s
Answers
Answer:
Advantage : Outperforming the market
Disadvantage : Underperforming in the market
Explanation:
Advantages of choosing Bledsoe Large company stock fund
Bledsoe Large company stock fund is an actively managed fund hence there is the possibility of outperforming in the market as data has shown over the 10 years, when compared with Bledsoe S&P 500 index Fund.
While the disadvantage is also the possibility of underperforming in the market and this is because most mutual funds cannot sustain its outperformance of the market over a very long period of time.
When workers move from one job to another it is
described as
A Job Rotation
B Job Enrichment
C Job Enlargement
D Job Simplification
Answers
A. Job Rotation. because they are moving another to another
A. Job Rotation is the movement between different jobs.
Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000.
Answers
Answer:
a. Contribution margin = Selling price - Variable cost per unit
Contribution margin = $15 - $10
Contribution margin = $5 per unit
Break even point in units = Fixed cost / Contribution margin
Break even point in units = $1,750,000 / $5
Break even point in units = 350,000 units
b. Required sale = Fixed cost + Target profit / Contribution margin
Required sale = $1,750,000 + $400,000 / $5
Required sale = $2,150,000 / $5
Required sale = 430,000 units
MC Qu. 93 Job A3B was ordered by a customer on... Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,000 of direct materials and used $4,500 of direct labor. The job was not finished by the end of the month, but needed an additional $3,500 of direct materials and additional direct labor of $7,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B
Answers
Answer:
$16,500
Explanation:
Note: Work In Process simply mean the cost of Job which is not complete.
Work In Process = Direct Materials + Direct Labor + Overhead Cost
Work In Process = $3,000 + $4,500 + ($4,500*200%)
Work In Process = $3,000 + $4,500 + $9,000
Work In Process = $16,500
So, the balance in the Work in Process account at the end of September relative to Job A3B is $16,500.
Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results. Budgeted Actual Sales $ 300 per unit $ 435,000 Variable expenses $ 120 per unit $ 172,000 Fixed expenses (total) $ 125,000 $ 122,000 Units produced and sold 1,200 1,400 List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
Answers
LEWIS Co.
Flexible budget performance report
For month ended May 31
Flexible budget Actual results Variances Result
Sales $420,000 $435,000 $15,000 Fav
(1400*$300)
Variable expense $168,000 $172,000 $4,000 Unfav
(1400*$120)
Contr. margin $252,000 $263,000 $11,000 Fav
Fixed cost $125,000 $122,000 $3,000 Fav
Net Income $127,000 $141,000 $14,000 Fav
See similar solution here
brainly.com/question/14015382
For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio
Answers
The question is incomplete. The complete question is :
For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio?
Initial cost = $10,000,000
O & M cost / year = $450,000
Estimated annual benefits = $850,000
Life = 25 Years
Salvage value = $1 million
MARR = 6%
Solution :
Given :
Initial cost = $10,000,000
Salvage, S = $1,000,000
O and M Cost/year = AOM = $450,000
Benefit per year, AWB = $ 850,000
Equivalent initial cost per year = C
Equivalent salvage per year = S x (A/F, 0.06, 25) = 1,000,000 x (A/F, 0.06, 25)
Let us calculate the interest factors,
[tex]$(A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^n}}$[/tex]
[tex]$(A/P,0.06,25)=\frac{0.06}{1-\frac{1}{(1+0.06)^{25}}}=0.078226718$[/tex]
[tex]$(A/P,i,n)= \frac{i}{(1+i)^n-1}[/tex]
[tex]$(A/P,0.06, 25)= \frac{0.06}{(1+0.06)^{25}-1} = 0.018226718[/tex]
The equivalent initial cost per year = AWC = 10000000 x 0.078226718 = $ 782267.18
Equivalent salvage per year, AWS = 1,000,000 x 0.018226718 = $ 18226.72
Conventional B-C ratio = AWB/(AWC-AWS+AOM)
= 850000/(782267.18-18226.72+450000)
= 0.7001
Modified B-C ratio = (AWB-AOM)/(AWC-AWS)
= (850000-450000)/(782267.18-18226.72)
= 0.5235
In this case. both the conventional B-C ratio and modified B-C ratio are less than 1, the project is not acceptable.
For each of the following transactions, select the account to be debited and the account to be credited in the general journal.
a. Invested cash in the business, $5,000.
b. Paid office rent, $500.
c. Purchased office supplies on account, $300.
d. Received cash for services rendered (fees), $400.
e. Paid cash on account, $50.
f. Rendered services on account, $300.
g. Received cash for an amount owed by a customer, $100.
Answers
Answer:
a. Dr Cash
Cr Capital
b. Dr Cash
Cr Rent
c. Dr Office supplies
Cr Accounts Payable
d. Dr Cash
Cr Accounts Receiveble
e. Dr Cash
Cr Accounts Receiveble
f. Dr Accounts Receiveble
Cr Services
g. Dr Cash
Cr Accounts Receiveble
Explanation:
Based on the information given the account to be debited and the account to be credited in the general journal will be:
a. Dr Cash
Cr Capital
b. Dr Cash
Cr Rent
c. Dr Office supplies
Cr Accounts Payable
d. Dr Cash
Cr Accounts Receiveble
e. Dr Cash
Cr Accounts Receiveble
f. Dr Accounts Receiveble
Cr Services
g. Dr Cash
Cr Accounts Receiveble
Adjusting and paying accrued wages LO P1
Pablo Management has five part-time employees, each of whom earns $90 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the five employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day. (January 1) was an unpaid holiday.
1. Prepare the year-end adjusting entry for wages expenses.
2. Prepare the journal entry to record payment of the employees' wages on Friday, January 4, 2018.
Answers
Answer:
1. Dr Wages expense $450
Cr Wages payable $450
2.Dr Wages expense $1350
Dr Wages payable $450
Cr Cash $1800
Explanation:
1. Preparation of the year-end adjusting entry for wages expenses.
Dec 31
Dr Wages expense $450
Cr Wages payable $450
( 5 employees * $90 per day)
(To record wages expenses)
2. Preparation of the journal entry to record payment of the employees' wages on Friday, January 4, 2018
Jan 4
Dr Wages expense $1350
(3 days*5 employees*$90=$1350)
Dr Wages payable $450
(5 employees * $90 per day)
Cr Cash $1800
($1350+$450 =$1800)
(To record payment of the employees' wages)
help please!!
39. When a business collapses, only those who work directly for the business are impacted.
True
False
Answers
Answer:
I can't say 100% but I am pretty sure it is false because anyone who works hand in hand with the business will also be affected as well as people that have like invested in it or etc so I'd have to say false.
also I love your pfp :p
Falseeeeeeeeeeeeeeeee:)
Enterprise Rent-A-Car analyzed and increased their comprehension of how service requests were managed and then made process improvement, bolstering customer experience. What tool did they use? c) New Product Development (NPD) d) Six sigma b) Radical redesign a) Business Process Management (BPM) e) Product life cycle management
Answers
Answer:
a) Business Process Management (BPM)
Explanation:
It is correct to say that Enterprise Rent-A-Car used business process management (BPM) to increase their understanding of how service requests were managed, drive process improvements, and enhance the customer experience.
BPM is an effective and easy-to-implement management tool that helps organizations achieve continuous process improvement, as it provides managers with real business data that enable them to make a more effective decision-making process through data and information generated in an intelligent system, which automates the process of understanding the organizational environment through modeling, simulation, execution, control and correction of bottlenecks found in the processes, so that there is continuous improvement in the processes, increasing quality and increasing the positive results of the organization.
The enterprise must use Business Process Management (BPM) method for analyzing purposes.
What is Business Process Management?
BPM is the process that helps in discovering, analyzing, and improving processes of business. It leads to the practice of contentious improvement in activities.
Therefore, it enables the understanding of environment modeling and making corrections in bottlenecks for raising quality standards.
Learn more about management here:
https://brainly.com/question/7273865
Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck
Answers
Answer:
Byrde Company
The amount that Byrde should record on its financial statements for the truck is:
= $10,000.
Explanation:
a) Data and Calculations:
Seller's asking price = $11,000
Amount paid after negotiation = $10,000
Fair price for the truck = $15,000
b) The amount to be recognized or recorded by Byrde on its financial statements for the truck is the cost price, that is, the amount that Byrde paid actually for the truck. The fair price cannot be recognized, since GAAP does not allow for noncurrent assets to be recognized at their fair prices. The historical cost is objective and verifiable, unlike the $15,000 fair price or the seller's asking price.
The amount that should be recorded on the financial statement for the truck is $10,000.
Given that,
The asked value is $11,000.The Company paid the amount of $10,000.The great deal amount should be $15,000.
Since the truck was purchased for $10,000 so the same amount should be recorded on the financial statements.
Therefore we can conclude that the amount that should be recorded on the financial statement for the truck is $10,000.
Learn more about the financial statement here: brainly.com/question/14951563
26 . Alpha Co. can produce a unit of Beta for the following costs: Direct Material $4 Direct Labor 12 Overhead 20 TOTAL $36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are:
Answers
Answer:
b. Make, $26
Explanation:
Options are "A. Buy, $26. B. Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40"
Calculation of total relevant cost
Direct materials $4
Direct labor $12
Overhead $10 ($20 * 50%)
Total relevant cost $26
Since the relevant cost is $26 when making, so the proper decision and the total relevant cost to compare with the $30 purchase price are "Make, $26".
Over the period of 1926 to 2017, small-company stocks had an average return of ________ percent. Group of answer choices
Answers
Answer:
12.1%
Explanation:
Over the period of 1926 to 2017, small-company stocks had an average return of ___12.1%_____ percent. 12.1% was the highest rate of small stock during the period of 1926 to 2017.
Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): 9%
Answers
Answer and Explanation:
The computation of the effective annual rate in each of the following cases are
1.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 +0 .09 ÷ 4)^4 - 1
= 9.31%
2.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 + 0.16 ÷ 12)^12-1
= 17.23%
3.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 + 0.12 ÷ 365)^365-1
= 12.75%
4 .
Effective annual rate = [(e)^Annual percentage rate]-1
e=2.71828
So,
=[(2.71828)^0.11]-1
= 11.63%
A company received a bill of $3,500 for utilities used in the current month. The journal entry to record this event: A. is not required; no journal entry should be prepared until the utilities bill is paid. B. will include a credit to Accounts Payable for $3,500. C. will include a credit to Utilities Expense. D. will include a debit to Accounts Receivable for $3,500.
Answers
Answer:
B. will include a credit to Accounts Payable for $3,500.
Explanation:
The journal entry to record Utilities bill for current month:
Account details Debit Credit
Utilities expense $3,500
Accounts Payable $3,500
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answers
Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages.
Last year, J&H Corp. reported a book value of $500 million in current assets, of which 20% is cash, 22% is short-term investments, and the rest is accounts receivable and inventory
The company reported $425.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period
The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $800 million in long-term assets last year
Income Statement For the Year Ended on December 31 (Millions of dollars)
Industry &H Corp Average $4,875 3,900 195 4,095 $780 Net sales $3,900 3,120 156 3,276 $624 62 $562 225 $337 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income $663 265 $398
Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true?
a. The company is using-$35.0 million in net operating working capital acquired by investor-supplied funds
b. J&H Corp.'s NOPAT is $374.4 million, which is lower than the industry average of $468.0 million
c. J&H Corp. has $110.0 million in nonoperating assets.
d. The firm uses $765.0 million of total net operating capital to run the business.
e. J&H Corp.'s net operating working capital is $75.0 million.
Answers
Answer:
c. J&H Corp. has $110 million in non operating assets.
e. J&H Corp's net operating working capital is $75 million.
Explanation:
NOPAT = EBIT ( 1 - Tax)
Tax is 40%
NOPAT = 663 * 60% = $698
Total currents assets $500 million and long term assets are 800 million.
The non Operating assets are 22% which is $110 million.
Net operating working capital = Current assets - Current liabilities
Net operating Working capital = 500 - 425 = $75 million.
In considering the market for yen and dollars, when the dollar depreciates:_________
A) the yen appreciates.
B) the yen will also depreciate.
C) the yen may either appreciate or depreciate.
D) U.S. net exports to Japan will fall.
Answers
It would be the Yeni may either appreciate amor depreciate
In the market for the Yen and the U.S. Dollar, a depreciation in the Dollar would see A) the yen appreciating.
What happens when the Dollar depreciates?
In a market where there is only the Yen and the U.S. Dollar, both currencies will have a negative correlational relationship.
This means that when one appreciates in value, the other will depreciate. If the U.S Dollar depreciates therefore, the Yen will appreciate.
In conclusion, option A is correct.
Find out more on exchange rates at https://brainly.com/question/4711402.
Miguel consumes only art classes and anthropology classes. Miguel prefers a bundle of art classes and anthropology classes (with not necessarily equal to ) over a bundle of art classes and anthropology classes if (and only if) and . If and then Miguel prefers , over , . If neither case is true, he is indifferent between the two bundles.
a. Miguel's preferences satisfy the completeness assumption
b. Miguel's preferences satisfy the transitivity assumption
c. Miguel's preferences satisfy the non-satiation assumption
Answers
Answer: A. Miguel's preferences satisfy the completeness assumption
Explanation:
Based on the information given, Miguel's preferences satisfy the completeness assumption.
According to the completeness axiom, an individual or firm must be able to make a choice whether the economic agent is either indifferent to, or maybe prefers, a particular set of options over other options.
This implies that consumers can rank the possibilities as better, good, bad, worse etc and an indifference curve can be assigned.
What is professionalism mean to you, and why does it matter?
Answers
Answer:
To you, professionalism may mean how you or your colleagues dress, the image you/they portray or the perception that you/they convey. ... Professionalism is a complex combination of knowledge, skills, abilities, and perception that everyone (and every has an opportunity to work on.
Compute the Return on Investment (ROI) [LO11-1]
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $ 17,300,000
Net operating income $ 4,700,000
Average operating assets $ 36,000,000
Required:
1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)
2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)
3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)
Answers
Answer:
See below
Explanation:
1. Margin
= Net operating income / Sales
= $4,700,000 / $17,300,000
= 0.2716 or 27.17%
2. Turnover
= Sales / Average operating assets
= $17,300,000 / $36,000,000
= 0.48
3. Return on investment
= Margin × Turnover
= 27.17% × 0.48
= 13%
What is another non-price determinant that could cause demand to decrease?
Answers
the lack of needing it anymore or trends dying.
Sunglow estimates that each blocked road results in lost revenue of $4,500 per event unless all three roads are blocked. When all three roads are blocked, the estimated lost revenue is $35,000 for that day. Sunglow estimates that weather will be similar in Year 2. It can retain a snowplow service for $50,000 annually to clear blocked roads. The variable cost of operating the snowplow is $500 per day per blocked road. If Sunglow uses a snowplow service in Year 2, the estimated benefit would be
Answers
Answer:
$127,500
Explanation:
The computation of the estimated benefit is given below;
In the case when the sunglow does not applied the service in the year 2, so the loss in revenue is
= $4500 per day per road × 1 road × 16 days + $4500 per day per road × 2 roads × 10 days + $35000 × 1 day
= $72,000 + $90,000 + $35,000
= $197,000
Now in the case when it applied the service in year 2, so the expenses incurred is
= $50,000 + $500 per day per blocked road × 1 road × 16 days + $500 per day per blocked road × 2 roads × 10 days + $500 per day per blocked road × 3 roads × 1 day
= $50,000 + $8,000 + $10,000 + $1,500
= $69,500
So, the net benefit is
= $197,000 - $69,500
= $127,500
A firm borrows $255,000 from the bank at 6 percent compounded annually to expand the production capacity. This loan is to be repaid in equal installments at the end of each year over the next 14 years. How much will each annual payment be
Answers
Answer: $27,434.10
Explanation:
The equal installments can be considered to be annuities for the very fact that they are equal.
This means that the $255,000 that was borrowed would be the present value of this annuity.
The annuity itself can therefore be calculated as follows:
Present value of annuity = Annuity * Present value interest factor of annuity, 6%, 14 periods
255,000 = Annuity * 9.2950
Annuity = 255,000 / 9.2950
Annuity = $27,434.10
At the beginning of 20X1, a company issues 100,000 shares of 4%, $10 par value, cumulative preferred stock. All remaining shares outstanding are common stock. The company does not pay any dividends in 20X1, but pays dividends of $100,000 at the end of 20X2. How much of the dividend will be paid to common stockholders in 20X2?
a. $20,000.
B. $100,000.
C. $80,000.
D. $60,000.
Answers
Answer:
a. $20,000.
Explanation:
The computation of the dividend that will be paid to common stockholders in 20X2 is shown below:
= $100,000 - ($100,000 × 10 × 4% × 2 years)
= $100,000 - $80,000
= $20,000
Hence, the dividend that will be paid to common stockholders in 20X2 is $20,000
Therefore the option a is correct
Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water:
Answers
Answer:
Cost of each bottle of water is $7.
Explanation:
This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him $7. The cost per bottle of water reduces as units increases.
XYZ manufactures dolls in two departments, Molding and Assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect costs in both departments. On January 1, the Molding Department had 32,000 dolls in process. These dolls were 0% complete with respect to direct materials and 30% complete with respect to conversion cost. During January, Molding completed 600,000 dolls. On January 31, Molding had 50,000 dolls in work in process. These dolls were 0% complete with respect to direct materials and 40% complete with respect to conversion cost. How many dolls were started in the Molding Department during January
Answers
Answer:
XYZ Manufacturing Company
The units of dolls started in the Molding Department during January is:
= 618,000.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process = 32,000 dolls 0% 30%
Completed in January 600,000 dolls 100% 100%
Ending work in process 50,000 dolls 0% 40%
Units started during January 618,000 dolls
= Dolls completed in January Plus Ending work in process Minus Beginning work in process
= 618,000 (600,000 + 50,000 - 32,000)
Why would anyone in their right mind buy a brand new car in the spring when they know that new car models will appear in late summer and early fall and the dealers will use?
A) markdowns to move that old inventory
B) information systems to move that old inventory
C) pull systems to move that old inventory
D) lost sales to move that old inventory
Answers
Answer:
A) markdowns to move that old inventory
Explanation:
An inventory is an accounting term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
When new car models appear in late summer and early fall, the dealers will use markdowns to move the old inventory.
A markdown price can be defined as the reduction in the original selling price of a good or service, in order to increase the level of sales. Also, it's used to describe a fall in the value of an asset.
Basically, a markdown is commonly used by businesses to stimulate the demand for their goods and services at a reduced price.
On the other hand, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.
Michelle made an early withdrawal of $6200 from her Roth IRA established 3 years ago ($5600 in principal and $600 in earnings). How much federal income tax would she owe on the early withdrawal if her tax bracket is 22%
Answers
Answer:
Michelle
The federal income tax that she owes on the early withdrawal amounts to $1,364 in addition to a $60 penalty for early withdrawal of earnings.
Explanation:
a) Data and Calculations:
Early withdrawal = $6,200
Principal portion = $5,600
Earnings portion = $600
Penalty on earnings for early withdrawal = $60 ($600 * 10%)
Federal income tax on on withdrawal = $1,364 ($6,200 * 22%)
b) Michelle can withdraw Roth IRA contributions (that is the principal portion) at any time with no tax or penalty. When she withdraws earnings from her Roth IRA, she owes income tax and a 10% penalty. This is unlike early withdrawal from a traditional IRA, whether it is the principal contributions or earnings, where there are income taxes and a 10% penalty to be charged the taxpayer on the total amount withdrawn.
Plethora Farms purchased a greenhouse for $52,700. Delivery costs totaled $1,825 and handling costs were $3,000. The useful life is 10 years and the salvage value is $14,050. Using the straight-line depreciation method, calculate the book value at the end of year 4. Group of answer choices $31,256 $58,000 $22,000 $40,135
Answers
Answer:
$40,135
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost of the asset =purchase cost + delivery cost + handling cost
$52,700 + $1,825 + $3,000 = $57,525
depreciation expense = ($57,525 - $14,050) / 10 = $4,347.50
book value at the end of year 4 = cost of the asset - accumulated depreciation
Accumulated depreciation = $4,347.50 x 4 = $17,390
Book value = $57,525 - $17,390 = $40,135
