Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period.
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset.
Answer:
a. $140,000 decrease
Explanation:
![\left[\begin{array}{cccc}Year&continued&discontinued&differential\\Sales&680,000&0&-680,000\\variable \: cost&-540,000&0&540,000\\contibution&140,000&0&-140,000\\fixed \: cost&-145,000&-145,000&0\\net \: income&-5,000&-145,000&-140,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DYear%26continued%26discontinued%26differential%5C%5CSales%26680%2C000%260%26-680%2C000%5C%5Cvariable%20%5C%3A%20cost%26-540%2C000%260%26540%2C000%5C%5Ccontibution%26140%2C000%260%26-140%2C000%5C%5Cfixed%20%5C%3A%20cost%26-145%2C000%26-145%2C000%260%5C%5Cnet%20%5C%3A%20income%26-5%2C000%26-145%2C000%26-140%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The fixed cost would not be eliminated entirely and we have no information of any partial decrease. so the differential analysis shows a decrease in 140,000 in the net income if product T is discountinued
Answer:
a. True
Explanation:
There are two commonly used organization structures by firms. The first one is known as the<em> Functional Organization Structure</em>. The other one is known as the <em>Divisionalized Organisation Structure</em>.
Functional Organization Structure - Activities of a similar type within the company are placed under the control of the appropriate department head. Examples of Functions are Production, Marketing and Finance.
Divisionalized Organisation Structure - Organisations are split up into divisions in accordance with products that are made. These divisions are separate Investment and Cost Centers and decision making is decentralized.
Slide presentations help you present your content in a logical and organized manner because they allow you to present your slides: C (sequentially).
Hope I helped you :).
Answer: a. True
Explanation: A parallel test invovles bringing the recovery site to a state of operational readiness, but maintaining operations at the primary site
