answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grandymaker [24]
1 year ago
6

On January 2, year 5 Ral Co. leased land and a building from an unrelated lessor for a 10-year term. The lease has a renewal opt

ion for an additional 10 years, but Ral has not reached a decision with regard to the renewal option. In early January of year 5, Ral completed the following improvements to the property: Description - Estimated life - Cost Sales office 10 years $47,000 Warehouse 25 years 75,000 Parking lot 15 years 18,000 Amortization of leasehold improvements for year 6 should be:a. $7,000
b. $8,900
c. $12,200
d. $14,000
Business
1 answer:
nordsb [41]1 year ago
6 0

Answer:

D) $14,000

Explanation:

Description       Estimated life       Cost        Amortization per year

Sales office           10 years         $47,000           $4,700

Warehouse          25 years         $75,000           $7,500

Parking lot            15 years          $18,000            $1,800

total                                                                      $14,000

Even though the useful life or the warehouse and parking lot is longer than 10 years, since the lease contract is only for 10 years, then it must be depreciated in 10 years.

You might be interested in
Irene invested $27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw $6,000 after three years. If the CD’s p
stepladder [879]

$5,040 since Irene earned nearly earned about $4,800 less than what she would be making if she did not make her early withdrawal.

8 0
2 years ago
Read 2 more answers
2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
Novosadov [1.4K]

Answer: The answer is D. The price of gasoline rises due to rising oil prices

Explanation: microeconomist study is based on the interaction of individuals or firms in an economy, rather than aggregate economic factors that affect a nation as a whole. Examples are inflation rate, unemployment rates, Per capital income, GDP etc

4 0
2 years ago
Operational inefficiencies occur because accounts unique to many concurrent transactions need to be updated in real time.
IrinaK [193]

Answer:

This statement is False

Explanation:

Operational inefficiencies do not occur because accounts unique to many concurrent transactions need to be updated in real time. There are many reasons for operational inefficiencies occur as a result of factors such as improper planning, poor scheduling, poor supervision and quality control, and other factors.

5 0
2 years ago
Columbia Gas Company’s (CG) current capital structure is 35% debt and 65% equity. This year CG has earnings after tax of $5.31 m
Reil [10]

Answer:

Current dividend per share paid (Do)

= <u>Total dividend </u>

  No of shares outstanding

= <u>$1,600,000</u>

   1,000,000 shares

= $1.60 per share

Current market price = $31

Growth rate = 8%  = 0.08

Ke = Do<u>(1 + g)</u>  + g

               Po

Ke = $1.60<u>(1 + 0.08)</u> + 0.08

                     $31

Ke = 0.1357 = 13.57%

Interest rate on borrowing (Kd) = 10%

Tax rate (T) = 40% = 0.40

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 13.57(65/100) + 10(35/100)(1 - 0.4)

WACC = 8.82 + 2.10

WACC = 10.9%

The correct answer is A

Explanation:

In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%.  Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.

6 0
1 year ago
An organization contracts with software developers to produce apps for clients. The organization is paid in part by how well the
Sever21 [200]

Answer:

There is no reason not to include these process measures in the employee performance evaluations.

The method of appraisal which is being deployed here is very result-oriented rather than task-oriented. Result-oriented performance appraisals help employees to focus on the result while carrying out their task.  When setting these objectives, employer and employee usually agree to the terms during a joint consultative session.

Instead of measuring how much work has been done, it measures how much the employees has contributed to the desired effects for which the work was created.

In management parlance, this type of performance measurement/appraisal is called: Management by Objectives methods of Performance Appraisal.

Cheers!

8 0
2 years ago
Other questions:
  • Jack and diane each buy pizza and paperback novels. pizza costs $3 per slice, and paperback novels cost $5 each. jack has a budg
    8·1 answer
  • Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sa
    6·1 answer
  • An airline sells 120 tickets for a flight that seats 100. Each ticket is non-refundable and costs $200. The unit cost of flying
    9·1 answer
  • Barbara solicits input from her subordinates before making decisions that will affect them. She often praises them for good work
    15·1 answer
  • Donald discovers major flaws in the packaging department. He consults the production manager and formulates control measures to
    14·1 answer
  • Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a
    5·1 answer
  • 20. Otto's Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31. The customer picks up the v
    8·2 answers
  • During the month, Cellum, Inc. sold 100 cells at a price of $100 each. Each cell was sold at a 1% sales discount. Cellum had ret
    8·1 answer
  • Suppose three companies, Optimax, Megachug, and Thirstoid, dominate the sports drink market. Optimax enjoys the largest market s
    10·1 answer
  • Nation’s Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firm’s controller is accum
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!