Answer
The answer and procedures of the exercise are attached in the following archives.
Consider the excel document where the source of the results is plotted.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A
Explanation:
Optimization using total value calculates the total value of each feasible option and then picks the option with the highest total value.
Optimization using marginal analysis calculates the change in total value when a person switches from one feasible option to another, and the uses these marginal comparisons to choose the option with the highest total value.
Both gives identical answers.
Optimization can be implemented using many different techniques.
One of it, is Total value total benefit - total cost (net benefit).
It translate all cost and benefits into common units, like dollar per month.
Calculate the total net benefit of each alternative.
Pick the alternative with the highest net benefit.
The answer is B. Blueprints for a house. Hope it help
Answer and Explanation:
The computation is shown below:
a) The adjusted basis for the land and the building at the acquisition date is
Land = $100,000
Building = $400,000
We recognized the purchase price of land and building
b. And, the adjusted basis for the land and the building at the end of 2019 is
Land = $100,000
Building is
= $400,000 - $4,708
= $395,292
We considered the cost recovery for the computation above
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.
