Answer:
b. $4,908,000
Explanation:
According to the FASB GAAP, the straight line method is used in this given question which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($40,900,000 - $4,090,000) ÷ (15 years)
= ($36,810,000) ÷ (15 years)
= $2,454,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation would be
= Annual year depreciation × number of years
= $2,454,000 × 2 years
= $4,908,000
Answer:
6.75%
Explanation:
Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:
Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:
972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40
Solve the equation we get YTM = 6.75%.
So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.
Answer:
(A) 4.8 months
Explanation:
After the expiration of a lease, a maximum of one third allowance is usually given.
Therefore, The expected vacancy at the end of this lease can be calculated as follows:
The expected vacancy = 60% × 12 × (2 ÷ 3) = 4.8 months
Therefore, the expected vacancy at the end of the lease is 4.8 months.
Answer: the answer is false
Explanation: All the work contained within the work breakdown structure is to be identified, estimated, scheduled, and budgeted
Work breakdown team includes work to be executed by the project team to accomplish the project objectives and create the required deliverables,it also includes a visual tool for defining and tracking a project deliverable and all the small components needed to create it. breakdown structures should include about three levels of detail.
Answer: <em>Total Period Cost = $20,500</em>
Explanation:
Given :
Salary = $4000
Factory supply = $1000
Indirect labor = $6000
Direct material = $16000
Advertising expense = $2500
Office expense = $14000
Direct labor = $20000
Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:
<em>
Period costs = Salary + Advertising expense + Office expense
</em>
<em>
= $4,000 + $2,500 + $14,000
</em>
<em>
= $20,500</em>
