Mary Ann runs a car dealership selling only government produced cars. At the end of

On January 1, 2020, CORONVS Inc. acquired a machine for $1,000,000. The estimated useful life of the asset is 5 years. The resid

Elenna [48]

Answer:

The book value of the machine at the end of 2021 is $620000.

Explanation:

The straight line depreciation allocates a constant depreciation expense throughout the useful life of the machine. The straight line depreciation expense can be calculated using the following formula,

Depreciation expense per year = (Cost - Residual value) / estimated useful life

Depreciation expense per year = (1000000 - 50000) / 5 = $190000 per year

The book value of asset is the value of the asset calculated by deducting Accumulated depreciation from its cost.

The book value of the machine at the end of 2021 will be the, considering the depreciation expense for year 2021 has been charged,

Accumulated depreciation till 2021 end = 190000 for Year 2020 + 190000 for Year 2021 = $380000

Book value at the end of 2021 = 1000000 - 380000 = $620000

8 0

2 years ago

Inelastic demand creates an incentive for suppliers to: A) compete with each other and increase the quantity supplied. B) stop p

STALIN [3.7K]

Answer:

D) try to get together and limit the quantity supplied.

Explanation:

Elasticity of demand is defined as a measure of the responsiveness of changes in quantity demanded with change in price.

When price increases the quantity demanded falls.

If a good is inelastic it means that the price increase will not result in a big drop in quantity demanded.

So if suppliers notice a good is inelastic they will most likely come together to reduce supply while increasing prices. This will result in higher revenues for them as quantity demanded does not fall with increase in price.

8 0

2 years ago

Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Frid

butalik [34]

Answer:

intrapreneurs

Explanation:

An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company.

An intrapreneur works inside a company to develop an innovative idea or project that will enhance the company's future.

The intrapreneur is generally given autonomy to work on a project that may have a considerable impact on the company. Over time, an intrapreneur may turn into an entrepreneur.

5 0

2 years ago

If a hurricane hits central florida, the marginal benefit from visiting disney world ______, which ______ the incentive to visi

DiKsa [7]

Answers respectively - falls, weakens If hurricane hits, they have to return refunds for those who haven't traveled yet, they have to closed attractions so marginal benefit from visiting disney world so it weakens the incentives.

5 0

2 years ago

Anchor, Inc. had income after taxes of $500,000 for the current year. An average of 125,000 shares of Anchor’s common stock was

Karolina [17]

Answer:

Basic EPS 3.95

Basic EPS Dilutive 3.337

Explanation:

Calculation for the basic and diluted EPS for the current year

First step is to find the convertible securities outstanding for the current year from 1 to 5

1. Numerator effect=6,000

(6%*100,000)

Denominator effect=15,000

[(100,000/10)*1.5]

ME=6000/15,000=.402.

2. Premium=5,000

[(105%-100%)*100,000]

Yearly Amortization= 500

5,000/10 years

Yearly Payment= 8,000

(8%*100,000)

Numerator effect= 8,000-500

= 7,500 * (100%-34%)= 4,950

Denominator effect= 100,000/1,000

= 100*90 per share= 9000

ME= 4,950/9,000

ME=.553.13 percent

3. Discount=900

[(100%-97%)*30,000]

Yearly Amortization=180

(900/5years)

Yearly Payment=3,900

Numerator effect= 3,900+180

=4,080*(100%-34%)

= 2,692.8

Denominator effect= 900

ME=2693/900

ME= 2.994.7 percent

4. Discount=3,000

(60,000/20)

Yearly Amortization=375

(3,000/ 8years )

Yearly Payment= 4,200

Numerator effect= 4,200+375

Numerator effect= 4,575*(100%-34%)

= 3,019.5

Denominator effect= 1,200

ME= 3020/1200= 2.525

5. Numerator effect= 55,000*(100%-34%)

= 36,300

(11%*500,000=55,000)

Denominator effect= 10,000

ME=36300/10000= 3.63

Second step is to calculate the basic and diluted EPS

Calcualtion for BASIC EPS

Net income = 500,000- (100,000*.06=6000)

Net income= 494,000

Average Outstanding=125,000

Using this formula

Basic EPS=Net income/Average Outstanding

Let plug in the formula

Basic EPS:494,000/125,000

Basic EPS=3.95

Therefore the Basic EPS will be 3.95

Calculation for BASIC EPS DILUTIVE

Dilutive=494,000+6,000+4,950+2,693+3,020/125,000+2,000+15,000+9,000+900+1200

Basic EPS Dilutive=510,663/153,000

Basic EPS Dilutive=3.337

Therefore Basic EPS Dilutive will be 3.337

8 0

2 years ago