Answer:
November 2011
Explanation:
Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.
Answer:
Deprecation base=$26,300
Explanation:
Given Data:
Cost of machine=$28,000
Tax=$125
Fees=$200
Shipping charges=$500
Paid to contractor to build and wire a platform for the machine=$475
Salvage value=$3000
Useful life = 6 years
Required:
Depreciation base of Cominsky's new machine=?
Solution:
Deprecation base=Acquisition Cost-Salvage Value
Acquisition Cost:
It is the cost which involves the buying of asset and making the asset to work. In our case:
Acquisition Cost=Cost of machine+Tax+Fees+Shipping charges+Paid to contractor to build and wire a platform for the machine
Acquisition Cost=$28,000+$125+$200+$500+$475
Acquisition Cost=$29300
Deprecation base=Acquisition Cost-Salvage Value
Deprecation base=$29300-$3000
Deprecation base=$26,300
Answer:
It will take 30.10 year
Explanation:
We have given initial investment $500000
Future value = $ 1 million = $1000000
Rate of interest r = 1.79 %
We have to find the time taken to reach the amount $1000000
We know that future value is equal to
Taking log both side
n×0.0077 = 0.3010
n = 39.09 year
Now in second case rate of interest
r = 2.34 %
So
taking log both side
log 2 = n log 1.0234
n×0.01 = 0.3010
n = 30.10 year