When a firm invests in a risky project that happens to be highly profitable, bondholders also enjoy a higher payoff than what a less risky project would produce the same way as stockholders would.

a. True
b. False

Answers

Answer 1

Answer:

the answer is false mark me brainlist


Related Questions

You are reviewing a company's general ledger. It shows consecutive balances of $52,111 and $60,564 for the Accounts Receivable account. Without looking at the transaction column, what was the transaction

Answers

Answer:

Accounts Receivable   $8453 (debit)

Sales  $8453( credit)

Explanation:

The consecutive balances are $52,111 and $60,564 which means that the Accounts Receivable has increased from $52,111 to $60,564.

Increase in Accounts Receivable=  $60,564 - $52,111

                                                     =$8453

The Accounts Receivable balance increases when sales are made on accounts with certain given terms etc.

So the transaction would be

Accounts Receivable   $8453 (debit)

Sales  $8453( credit)

The debit in accounts receivable shows that the balance has increased . Also the credit in Sales accounts show that the sales have increased.

Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1 = 0.3%, E(2r 1) = 1.3%, E(3r1) = 9.4%, E(4r1) = 9.75%. Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year maturity Treasury securities. (Round your answers to 3 decimal places. (e.g., 32.161))

Answers

Answer:

Year 1 long term rate is the same as first year 1 year rate = 0.3%

Year 2

= √[(1 + year 1 rate%) * (1 + year 2 rate%)]  - 1

= √[(1 + 0.3%) * (1 + 1.3%)] - 1

= 0.799%

Year 3

= ³√[(1 + year 1 rate%) * (1 + year 2 rate%) *  (1 + year 3 rate%)]  - 1

= ³√[(1 + 0.3%) * (1 + 1.3%) * (1 * 9.4)] - 1

= 3.588%

Year 4

=  ⁴√[(1 + year 1 rate%) * (1 + year 2 rate%) *  (1 + year 3 rate%) * (1 + 4 year rate)]  - 1

= ⁴√[(1 + 0.3%) * (1 + 1.3%) * (1 * 9.4) * (1 + 9.75%)] - 1

= 5.095%

Waterway Industries is planning to sell 800 buckets and produce 1080 buckets during March. Each bucket requires 200 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 200 grams and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 300 kilos of plastic in beginning inventory and wants to have 500 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

Answers

Answer:

See below

Explanation:

From the above,

One bucket requires;

200 grams of plastic and one half of direct labor

The plastic costs $10 per 200 grams and the employees are paid $15 per hour.

Therefore, one bucket costs (material and labor) :

= $10 + $15 × (1/2)hour = $17.5 per plus 1.10 × $7.50 = $25.75

For 1,080 buckets

$25.75 × 1,080 = $27,810

Therefore, the total amount of budgeted direct material for March is $27,810

A man wants to help provide a college education for his young daughter. He can afford to invest $1500/yr for the next 5 years, beginning on the girl 's 5th birthday. He wishes to give his daughter $10,000 on her 18th, 19th , 20th, and 21 st birthdays, for a total of $40,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl's 9th through 17th birthdays?

Answers

Answer:

$1,919.69

Explanation:

when the daughter is 9 years old, total savings = $1,500 x 5.6371 (FVIFA, 6%, 5 periods) = $8,455.65

first 5 payments:

birthdays = 5, 6, 7, 8, 9

the present value of the $40,000 that he needs for her daughter's college = $10,000 x 3.4651 (PVIFA, 6%, 4 periods) = $34,651

the FV until the 17th birthday = $8,455.65 x 1.06⁸ = $15,650.82

he needs to save = $34,651 - $15,650.82 = $19,000.18

value of annual deposits = $19,000.18 / 9.8975 (FVIFA, 6%, 8 peridos) = $1,919.69

Fact Pattern 28-2 Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly faster computer chip. Adam buys Beta stock and tells his friend Cathy, who also buys Beta stock. When the new chip is announced three weeks later, Adam and Cathy sell their stock for a big profit.Refer to Fact Pattern 28-2. Regarding Adam's profits on the purchase and sale of Beta stock, under Section l6(b) of the Securities Exchange Act of 1934 Beta may recapturea) 10 percent of Adam's profitsb) half of Adam's profitsc) all of Adam's profits.d) none of the above.

Answers

Answer:

C. All of Adam's profits

Explanation:

If Adam is found guilty of using insider information from the company Beta Computer to gain profits by buying and selling stock of the company. He can be sued by the other security holders and will be held liable to pay all of his profits made with that trade. under the Section 16{b} of the Securities Exchange Act of 1934.

More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat:
Direct Materials Direct Labor Manufacturing Overhead
Standard Quantity 2 Pounds (Aluminum) 1/2 hour 1/2 hour
Standard Price $4.00 $10.00 $6.00
Unit Standard Cost $8.00 $5.00 $3.00
In 2019, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor. Actual results for 2019 are presented below:
1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900.
2. Direct materials used were 220,000 pounds of aluminum.
3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked.
4. Total manufacturing overhead was $352,000.
5. Actual production was 114,000 baseball bats.
Compute the following variances and identify whether the variance is favorable or unfavorable:
1. Direct Materials Price
2. Direct Materials Quantity
3. Direct Labor Price
4. Direct Labor Quantity
5. Total Overhead Variances
Prepare the journal entries to record the transactions and events in 2019.

Answers

Answer: See explanation

Explanation:

AP = 4.15

SP = 4.0

SQ = 114000 × 2 = 228000

1. Direct Materials Price

= (AQ × AP) - (AQ × SP)

= (246000 × 4.15) - (246000 × 4.0)

= 1020900 - 984000

= 369000 U

2. Direct Materials Quantity

= (AQ × SP) - (SQ × SP)

where SQ = 114000 × 2 = 228000

= (220000 × 4.0) - (228000 × 4.0)

= 880000 - 912000

= 32000 F

3. Direct Labor Price

= (AH × AR) - (AH × SR)

= (58700 × 9.8) - (58700 × 10)

= 575260 - 587000

= 11740

4. Direct Labor Quantity

= (AH × SR) - (SH × SR)

where, SH = 114000 × ½ = 57000

= (58700 × 10) - (57000 × 10)

= 587000 - 570000

= 17000 U

5. Total Overhead Variances

= 352000 - (57000 × 6)

= 352000 - 342000

= 10000 Unfavorable

Check attachment for further details

A constant return of scale indicates that a firm is producing its ______ at a ______ ATC, which also shows that the firm is _______.

Answers

Answer:

The question is incomplete, the options are missing. The options are the following:

A) input, constant, lack of competitiveness

B) output, lower, doing well

C) output, constant, doing well

D) output, higher, doing well

E) input, lower, lack of competitiveness

And the correct answer is the option C: output, constant, doing well.

Explanation:

To begin with, in the microeconomics theory when it comes to the term of "constant return of scale" it refers to the situation in where a company is producing its output at a constant average total cost indicating that is doing well due to the fact that the costs are still covered by the earings that the company is having so that means that it could still keep on working for the next period. The term of return of scale focus on the changes donde in the inputs and how that affects the outputs and the earning regarding that base.

The following is selected financial information for Osmond Dental Laboratories for 2021 and 2022: 2021 2022 Retained earnings, January 1 $ 53,000 ? Net income 40,000 45,000 Dividends 12,000 25,000 Common stock 78,000 ? Osmond issued 3,000 shares of additional common stock in 2022 for $22,000. There were no other stock transactions. Prepare a statement of stockholders' equity for the year ended December 31, 2022. (Amounts to be deducted should be indicated with minus sign.)

Answers

Answer:

Osmond Dental Laboratories

Statement of Stockholders' Equity:

                                                           2022

Common stock                              $90,000

Retained earnings, December 31   101,000

Stockholders' equity                    $191,000

Explanation:

a) Data and Calculations:

Osmond Dental Laboratories for 2021 and 2022:

                                                       2021        2022

Retained earnings, January 1 $ 53,000              ?

Net income                                 40,000    45,000

Dividends                                    12,000    25,000

Common stock                          78,000              ?

Analysis:

Cash $22,000 Common stock $22,000

Retained earnings, January 1         $ 53,000     81,000

Net income                                         40,000    45,000

Dividends                                           -12,000   -25,000

Retained earnings, December 31   $ 81,000 $101,000

Common stock on December 31 = $90,000 ($78,000 + $22,000)

Statement of Stockholders' Equity:

Osmond Dental Laboratories for 2021 and 2022:

                                                           2021        2022

Common stock                             $78,000  $90,000

Retained earnings, December 31  81,000     101,000

Stockholders' equity                  $159,000  $191,000

a diamond poem for economy

Answers

here is the poem! hope you like it :)

Explanation:

There are some economic ways to live

to prevent monitary disaster

try being thoughtful when you try to give

you will always grow happier faster

conserve and waste not for it shall have cost

money you save is the money you earned

it is hard to get back what you have lost

show every one the knowledge you have learned

try to buy what you need and nothing more

being over indulgence is not good

do not hang out at the department store

would try to go to the park if I could

it's very good for ecnomy to spend

but all the wastifulness has to end

Class: Finance - Money and Banking

Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and has a face value of $1,000?

Answers

Answer:

mmm?mmmm???m?mmmm?mmmmm

Springfield Bank holds $280 million in total deposits and $40.7 million in total reserves. With a required reserve ratio of 11.5 percent, how much in excess reserves is Springfield Bank holding?
a) $239.3 million
b) $247.8 million
c) $36 million
d) $32.2 million
e) $8.5 million

Answers

Answer:

e) $8.5 million

Explanation:

The computation of the excess reserve is shown below:

We know that

Excess reserve = total reserve - required reserve

where

Required reserve is

= Total deposits × required reserve ratio

= $280 × 11.5%

= $32.20

So, the excess reserve is

= $40.7 - $32.20

= $8.5 million

Isabella wants to gather competitive intelligence (CI) on toy manufacturers before she launches her toy company, which has developed remote-controlled dinosaurs. Her dinosaurs are designed for children over 6 years old. Isabella plans to check some noncomputer sources. She could use all of the following sources EXCEPT _______.
a. Ci consultants
b. industry experts
c. suppliers
d. scanner research

Answers

Answer:

d. scanner research

Explanation:

The scanner research includes the data analyze that collected via scanning the devices and same is applied at the time of purchase. It is the type of the computer based research and she wants to check that non-computer sources

So the other options would not be considered as they are doing for the research purpose

But the above option is not considered for the same

Therefore the option d is correct

Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under for relief through:_______

a. a liquidation.
b. a reorganization.
c. a repayment plan.
d. an adjustment plan.

Answers

Answer:

b. a reorganization.

Explanation:

Under the chapter 13, the bankruptcy should be filed and it mainly reorganization plan for the payment. It is to be done by splitting the non-secured debt across the various years also it permits the individual to retain the assets

So as per the given situation, in order to attain the goal, the proprietorship should file the petition in bankruptcy under for relief via a reorganization

The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of marginal analysis. a private good. market failure. a recession.

Answers

Answer:

Market failure.

Explanation:

In this scenario, the port became so congested such that ships now have to wait hours queing every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of market failure.

A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet demand.

This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.

Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.

4. Know the market trends of products that are in demand not
only within the local market but also in the international market.​

Answers

Answer:

oligopoly

Explanation:

it is unique the market is blocked not easy to enter

As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of $300,000. Sales of the company are expected to increase by 10 percent for each of the next two years. If all current assets and current liability accounts increase proportionately with sales, what would be the projected current ratio of the company on Dec. 31, 2015

Answers

Answer:

2.00

Explanation:

Calculation to determine what would be the projected current ratio of the company on Dec. 31, 2015

Using this formula

Current ratio =Current assets/ Current liabilities

Let plug in the formula

Current ratio =$600,000 /$300,000

Current ratio =2.00

Therefore the projected current ratio of the company on Dec. 31, 2015 is 2.00

The market for the fast car with so much horsepower that handling becomes an issue is decreasing. People are more interested in buying SUVs and pickups. As a result, General Motors is stopping production of its Camaro, a car that has had limited sales recently. Since the Camaro can no longer generate enough cash to sustain its manufacture, the BCG portfolio would classify it as a:

Answers

Answer:

Dog.

Explanation:

In 1970, Bruce D. Henderson developed and created a growth-share matrix for the Boston Consulting Group (BCG). The Boston Consulting Group (BCG) growth-share matrix is a tool used for analyzing and planning product lines in a business unit. It makes use of a graphical representation of a company's product line and services to analyze and make long-term strategic plans on which to invest more on or sell off.

Generally, products are divided into four (4) main categories in the BCG growth-share matrix;

1. Dogs.

2. Stars.

3. Question marks.

4. Cash cows.

A dog refers to a product or business unit that has a very low growth rate or market share and as such generates insufficient amount of revenues.

In this scenario, Camaro isn't able to generate sufficient (enough) cash to sustain its manufacturing or production process, the Boston Consulting Group (BCG) portfolio would classify it as a dog.

Select the correct revenue recognition principle for each of the following. Clear All Recognize revenue over the passage of time. Recognize revenue when the customer takes possession of the product. Recognize revenue when cash is collected. Recognize revenue when service is performed.

Answers

Answer:

Recognize revenue when service is performed.

Explanation:

Revenue recognition principle is an accounting principle which states that revenue should only be recognized when it is earned(when service has been rendered or completed) and not when cash is being collected.

What the above means is that revenue can only be earned when services are completed or rendered and not necessarily when payment is made. The reason is that payment may not be made for several weeks even after service has been rendered hence the principle or concept is incorporated into the accrual basis of accounting.

Sam's Cat Hotel operates 51 weeks per​ year, 6 days per week. It purchases kitty litter for $6.50 per bag. The following information is available about these​ bags: ≻Demand ​= 70 ​bags/week ≻Order cost​ = ​$75​/order ≻Annual holding cost​ = 22 percent of cost ≻Desired ​cycle-service level=99 percent ≻Lead time​ = 1 ​week(s) ​(6 working​ days) ≻Standard deviation of weekly demand​ = 7 bags ≻Current ​on-hand inventory is 200 ​bags, with no open orders or backorders. Suppose that​ Sam's Cat Hotel uses a P system. The average daily​ demand, d​, is 12 bags ​(70​/6​), and the standard deviation of daily​ demand, Standard Deviation of Weekly Demand Days per Week​, is 2.858 bags.

Current on-hand inventory is 320 bags, with no open orders or backorders.

Required:
a. What is the EOQ? What would the average time between orders (in weeks)?
b. What should R be?
c. An inventory withdraw of 10 bags was just made. Is it time to reorder?
d. The store currently uses a lot size of 500 bags (i.e., Q=500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude lot size is too large?
e. What would be the annual cost saved by shifting from the 500-bag lot size to the EOQ?

Answers

Answer: B

Explanation:

The market price of a security is $46. Its expected rate of return is 10%. The risk-free rate is 4%, and the market risk premium is 9%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)

Answers

Answer:

The new Market price =$28.75

Explanation:

According to the  Capital Asset Pricing Model CAPM, we have that  

Expected return= risk free rate+(beta X market risk premium)

10=4+ beta x 9

= 10- 4  = beta x 9

beta =6 /9 =0.666

IF  beta doubles with other variables constant

Expected return= risk free rate+(betaXmarket risk premium)

Beta= 0.666 x2 =1.3333

Expected return = 4+ 1.333 x 9

Expected return 4+ 12=16%

Price  =  Perpertual Dividend /Expected return

where Current Share price =$46

Dividend = $46 x 10%=4.6  

 

The new Market price =  Perpetual dividend/New Required return

= 4.6/16% =$28.75

So the new Market price =$28.75

There are two reasons that an industry prefers self-regulation to government regulation: cost and flexibility. True False

Answers

Answer:

True.

Explanation:

In general, the vast majority of industrial entrepreneurs prefer self-regulation over government regulation. This is so due to two fundamental factors: on the one hand, the maintenance costs of the government regulatory system are paid for through taxes, which means that the higher the regulations, the higher the taxes that each company must pay, while the self-regulation should not spend. more money than that of the control systems, without allocating sums of money to the government; and on the other, flexibility, that is, the possibility of adapting the processes, systems and needs of each company to the necessary regulations, being able to optimize costs and processes.

McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.20 to produce. Non-defective sandwiches sell, on the average, for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped.
The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $100,000, $130,000, and $150,000, respectively. Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a .90 chance that 95 out of each 100 sandwiches are non-defective and a .10 chance that 80 out of each 100 sandwiches are non-defective.
The expected profit level of design K1 is $____.
The expected Profit leve of design K2 is___.The expected profit level of design k3 is___.

Answers

Answer:

McBurger, Inc.

The expected profit level of design K1 is $_42,500__.

The expected Profit level of design K2 is_19,063__.

The expected profit level of design k3 is_20,625__.

Explanation:

a) Data and Calculations:

Daily production units at a typical McBurger restaurant = 500 sandwiches

Yearly production units =150,000 (500 * 300)

Unit production cost of a sandwich = $1.20

Selling price of non-defective sandwich = $2.50

                                              Design K1   Design K2    Design K3

Calculation of non-defective units:

0.80 * 90/100 * 150,000         108,000

0.20 * 70/100 * 150,000           21,000

0.85 * 90/100 * 150,000                              114,750

0.15 * 75/100 * 150,000                                16,875

0.90 * 95/100 * 150,000                                                 128,250

0.10 * 80/100 * 150,000                                                    12,000

                                              129,000        131,625       140,250

Sales Revenue                  $322,500    $329,063    $350,625

Production cost                   (180,000)     (180,000)     (180,000)

Cost of design                    (100,000)     (130,000)     (150,000)

Expected profit                   $42,500       $19,063      $20,625

Sales revenue = Non-defective sandwiches * $2.50

Product cost = Production units * $1.20

Expected profit = Sales Revenue - (Product cost + Design cost)

Working capital accounts include:Multiple Choicecurrent assets and current liabilities.current assets and all liabilities.all assets.all assets and liabilities.

Answers

Answer:

current assets and current liabilities

Explanation:

As we know that

The working capital shows the difference of the current assets and the current liabilities

It can be shown

Working capital = current assets - current liabilities

It is used for liquidity purpose whether the firm is able to pay off the short term obligations or not

Therefore the first option is correct

A perfectly elastic supply curve is: Group of answer choices upward sloping to the right. vertical. horizontal. downward sloping to the left.

Answers

Answer:

vertical

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $7.50 per share, forever. If the expected rate of return is 12%, what is the stock price of LIRE

Answers

Answer: $62.50

Explanation:

The stock price of Locked-In Real Estate (LIRE) will be calculated thus:

Stock price = D /ke - g

where,

D = Dividend paid per share = $7.50

Ke = expected rate of return on equity = 12% = 0.12

g is growth rate of dividend = 0

Stock price = $7.50/0.12

Stock price = $62.5

Therefore, the stock price is $62.50

Becker and Murphy wrote their article before DVR systems and online streaming services became popular. Nowadays, ads on television are avoidable (to a degree), just like ads in a newspaper. What impact do you think technology has on the types of ads you see on TV?

Answers

Answer:

Currently, most people can simply decide to skip ads. When you hire streaming services like Netflix or Disney+, one of the advantages is that there are no ads. People now watch the ads that they like and want to see, unless you are stuck watching the Superbowl or some type of live event. This adds pressure to marketing campaigns since ads need to attract viewers.

Explanation:

Gore organized on January 2, 2021, had pretax accounting income of $7,100,000 and taxable income of $10,160,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows:

2022 $1,020,000 30%
2023 510,000 30%
2024 510,000 30%
2025 1,020,000 35%

Required:
Prepare one compound journal entry to record Gore's provision for taxes for the year 2021.

Answers

Answer:

Date                  Account title                                              Debit           Credit

12/31/2021        Income tax expense                              $3,060,000

                         Deferred tax asset                                $ 969,000

                         Income tax payable                                                    $4,029,000

Explanation:

2021 Income tax expense from warranty costs:

= Taxable income - Pretax accounting income

= 10,160,000 - 7,100,000

= $3,060,000

Tax on the warranty payments will be treated as deferred tax assets so the total is:

= (1,020,000 * 30%) + (510,000 * 30%) + (510,000 * 30%) + (1,020,000 * 35%)

= $969,000

- True or False: Professional shoplifters steal primarily for the excitement.

Answers

False, professional shoplifters steal to resell items

Explain how mixed costs are related to both fixed and variable costs. A. Mixed costs have a fixed portion that is a cost per unit of cost driver activity. Mixed costs also have a variable portion that is usually a cost per time period. B. Mixed costs are the sum of the fixed and variable costs that are related to equipment costs. These mixed costs are a form of committed costs during the production phase. C. A mixed cost is the sum of fixed costs and the portion of variable costs that are related to salaries and wages. These mixed costs are discretionary costs that easily fluctuate and must therefore be kept separate during a production phase. D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.

Answers

Answer:

D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.

Explanation:

As we know that

The variable cost is the cost that can change when the level of production increase or decrease

The fixed cost is the cost that remains fixed whether the production level increased or not

ANd, the mixed cost includes some part of the variable cost and some part of the fixed cost

So as per the given options, the option D is correct as the mixed cost involved the fixed portion that could be cost per the time. And, it involved the variable portion i.e cost per unit with respect to the cost driver activity

f an asset was purchased on January 1, Year 1, for $140,000 with an estimated life of 5 years, what is the accumulated depreciation at December 31, Year 4

Answers

Answer:

The answer is "[tex]\$ 112,000[/tex]"

Explanation:

[tex]\text{Straight-line method depreciation}=\frac{Asset\ costs}{Utility \ of \ life}[/tex]

                                                     [tex]= \frac{\$ 140,000}{5}\\\\= \$ 28,000[/tex]

On 31 December, accumulated depreciation:

 [tex]= 4 \ years \times \$ 28,000\\\\=\$ 112,000[/tex]

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