Answer:
The incremental benefit cost ratio is less than 1 therefore we must select site 1.
Explanation:
The incremental BCR can be determined using the following formula
8% , 10)
⇒
⇒ 8%, 20)
⇒
⇒ = $203,704.42
Incremental initial investment = 203,704.42 - 149,029.49
= $ 54,674.93
Incremental benefits = 580,000 - 520,000 = 60,000
Incremental O&M = 75,000 - 80,000 = - $ 5000
Incremental Disbenefits = 140,000 - 90,000 =$ 50,000
All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.
The incremental benefit cost ratio is less than 1 therefore we must select site 1.
Answer: D. The investor has no tax liability on distributions received, and the investment company has no tax liability on retained income
Explanation:
Municipal Securities are exempt of Federal taxes and this is what makes them most attractive. An investor in a mutual fund which invests solely in municipal securities will therefore not have any tax liability because their returns would be based on securities that are federally tax exempt. The same goes for any income the Mutual fund intends to retain.
Answer:
Kathy should seek quotes from various rental space providers.
Explanation:
Kathy should make a decision to rent of renovate the building based on cost. The major criteria for decision making is based on the monetary factors. Rent for the new space will be compared with the renovation cost in order to reach to a final decision.
Depreciation Expense is a temporary account since it is an income statement account.
Therefore, the answer is
b . False
EcoMart establishes General Journal
May 2
Dr Petty cash 1050
Cr Cash 1050
May 30
Dr Merchandise inventory 120
Dr Postage expense 359
Dr Miscellaneous expenses 240
Dr Cash short and over 9
Cr Cash728
June 1
Dr Petty cash 150
Cr Cash 150
Workings:
May 30,Merchandise inventory 120+ Postage expense 359+ Miscellaneous expenses 240+ Cash short and over 9 = $728
June 1
1050-1200= 150