Answer: $10,906
Explanation:
Given that,
Purchased machinery at the beginning of Year 1 = $86,100
machinery has an estimated life of five years,
Estimated residual value = $4,305
Accumulated depreciation = $49,077 at the end of Year 2
Year 3 Depreciation expense:
= 
= 
= $10,906
Answer:
A. $2,700,000
Explanation:
For computing the deduction amount for depreciation tax, first we have to calculate the total amount of deferred tax amount which is shown below:
Total Deferred tax amount = Deferred tax × (percentage value ÷ tax rate)
= $90,000 × (100% ÷ 30%)
= $300,000
And the depreciation expense in this year is $2,400,000
So, the total amount deducted would be
= $300,000 + $2,400,000
= $2,700,000
The correct option is this: COCA COLA WILL SHIFT THE EXCESS CAPACITY TO THE PRODUCTION OF OTHER SOFT DRINK PRODUCTS.
The capacity that was devoted to the failed drink will be diverted towards the production of other soft drinks that the Coca cola company is manufacturing.
Answer:
11.28%
Explanation:
Midwest fastener stock is expected to have a 16% booming economy
12% normal economy
-3% recession economy
The probability of an economic boom is 12%
The probability of a normal state is 80%
The probability of a recession is 8%
Therefore, the expected rate of return can be calculated as follows
= (return in booming economy×probability of boom economy)+(return in normal economy × probability of normal economy)+(return in recession economy×probability of recession economy)
= (16%+12%)+(12%+80%)+(-3%+8%)
= 192%+960%+(-24%)
= 192%+960%-24%
= 1,128%/100
= 11.28%
Hence the expected rate of return on the stock is 11.28%
