the details of weekly output and input for a fabrication process are as follows: output is 600 units, with a standard selling price of $50 per unit. for the week, total labor costs are: 8 workers at 40 hours for the week, are paid $20 per hour. total material costs for the 600 units are $8,000. weekly overhead is charged at the rate of 1.3 times the labor costs. what is the multifactor productivity for the week? group of answer choices 2.00

Answers

Answer 1

The multifactor productivity is 1.32 for the week

By comparing the quantity of goods and services produced (output) with the quantity of inputs required to produce those goods and services, productivity is a measure of economic performance.

Total output = 600 units

Selling price per unit = $50

Total output in dollars = 600*50 = $30000

labour cost for 8 workers at 40 hours for the week = $20 per hour

Total labour cost = 8*40*20 = $6400

Total material cost for 600 units = $8000

Overhead cost = 1.3*6400 = $8320

Multifactor productivity = Total output/(Total labour cost + Total material cost + Overhead cost)

= 30000/(6400 + 8000 + 8320)

= 30000/22720

= 1.32

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Related Questions

in the economy of spendsalot, the marginal propensity to save, mps, is 0.9. what is the marginal propensity to consume, mpc, for spendsalot? mpc

Answers

The marginal propensity to consume,  for spends lots is b. the slope of pre-tax intake as a feature of GDP.

The required details for Gross home product (GDP) in given paragraph

Gross home product (GDP) is a monetary degree of the marketplace fee of all the very last goods and offerings produced and sold in a selected term with the aid of using countries. GDP (nominal) according to capita does now no longer, however, mirror variations in the price of dwelling and the inflation rates of the countries; therefore, the usage of a foundation of GDP according to capita at buying energy parity (PPP) can be greater beneficial while evaluating dwelling standards among nations, even as nominal GDP is greater beneficial evaluating countrywide economies at the worldwide marketplace. Total GDP also can be damaged down into the contribution of every enterprise or quarter of the economy.

GDP is frequently used as a metric for worldwide comparisons in addition to a extensive degree of monetary progress. It is frequently taken into consideration to be the "world's maximum effective statistical indicator of countrywide improvement and progress".

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Complete question

In the economy of Spends a lot, the marginal propensity to save is MPS=0.60. Use this information to answer both questions below.

1. What is the marginal propensity to consume, MPC, for Spends a lot?

2. MPC determines which of the following?

a. the slope of government consumption as a function of GDP

b. the slope of pre-tax consumption as a function of GDP

c. the slope of tax revenues as a function of GDP

d. the slope of pre-tax investment as a function of GDP.

if someone has a home valued at $100,000 and they currently owe $60,000. what is the biggest home equity line of credit they can get if the bank requirement for ltv is 90%.

Answers

Value of the house = $100,000

Amount owed = $60,000

Bank requirement is 90%

Therefore, the biggest home equity line of credit they can get is

= ($100,000 - $60,000) * 90%

= $40,000 * 90/100

=$36000

Home Equity Line Of Credit or HELOC is a variable-rate loan which allows to borrow a part of the pre-approved amount offered by the bank. This loan works similar to how a credit card works.

Similar to a home loan, the houses serve as collateral and repayment will include principal and interest. The repaid amount can be re-borrowed like a credit card.

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a company is considering purchasing a machine for $21,000. the machine will generate an after-tax net income of $2,000 per year. annual depreciation expense would be $1,500. what is the approximate accounting rate of return?

Answers

2.38% is the approximate accounting rate of return when a company is considering purchasing a machine.

The average net income an asset is anticipated to provide divided by its average capital cost stated as a percentage annually is known as the accounting rate of return (ARR). Making judgments on capital budgeting is done using the ARR formula.

Here, we need to calculate the approximate rate of accounting return. It would be calculated by the formula as,

Accounting rate of return= Net annual profit/investment

Net annual profit is the yearly earned profit that is not given. For this rate, all annual costs, including depreciation, must be deducted from the revenue. Depreciation expenses for fixed assets should be subtracted. So, it would be calculated as,

Net annual profit= Net income-Depreciation

Given,

Net income=$2,000

Depreciation=$1500

Therefore,

Net annual profit= 2000-1500

=500

Investment is the cost for purchase which is given by $21,000

Put the values in the above formula of accounting RoR. Therefore,

Accounting RoR=500/21000

=0.023809523

=2.38%

So, the accounting rate of return would be calculated as 2.38%.

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in a competitive marketplace, why would a firm price its product slightly higher than those of its rivals?

Answers

Because by setting a lower price, consumers are looking for the cheapest price among the many choices they face. So that, a firm will reached high profit.

Price generally can be defined as the amount of money that consumers have to pay to sellers to get the goods or services they want to buy. Therefore, prices are generally determined by the service owner or also seller. However, consumers or buyers can bid the price in the art of buying and selling. Then the transaction takes place when an agreement has been reached between the buyer and the seller. But bargaining cannot be done in all marketing lines. A purchase in the market is one of the example of a transaction that uses a bargaining system.

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the practice by which managers and other employees find jobs within their own companies for relatives is known as

Answers

The practice by which managers and other employees find jobs within their own companies for relatives is known as nepotism.

A benefit, privilege, or entitlement given to family members and friends in a profession or sector is known as nepotism. Business, politics, academics, the arts, sports, fitness, religion, and other spheres may fall under this umbrella. The phrase first appeared when Catholic bishops and popes appointed their nephews to significant positions.

Numerous philosophers have condemned nepotism since antiquity, calling it both wicked and foolish. The word nepotism is derived from the Italian nepotismo, which is derived from the Latin nepos, which means nephew.

Some Catholic popes and bishops, who had taken vows of celibacy and, as a result, typically had no legitimate offspring of their own, have given their nephews such positions of preference as were frequently given by fathers to sons since the Middle Ages and until the late 17th century.

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cory is working on the budget for his landscaping business. he decides he needs help with identifying, measuring, and recording financial transactions. who would be the best person to help him with these tasks?

Answers

A bookkeeper would be the best person to help Cory with identifying, measuring, and recording financial transactions.

Identification entails figuring out what financial transactions, or other items, need to be recorded. Items bought with cash or on credit, for instance, will be noted. The books of accounts do not include items of a non-financial nature, such as modifications to managerial procedures, etc.Measurement is the process of putting business transactions into numerical terms using a monetary unit. It is not deemed appropriate to record an event in the company's books if it cannot be valued financially. Due to this, significant events such as appointments and the signing of contracts, etc., are not recorded in the books of accounts.Recording After being recognised and quantified in monetary terms, economic events are recorded in books of accounts in monetary terms, date-wise. Business transactions are recorded in such a way that the essential financial data is condensed in accordance with accepted accounting principles.

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Refer to the data. Suppose that this bank currently has $6 million in excess reserves and that customers of this bank collectively write checks for cash at the bank in the amount of $6 million. As a result, the bank's excess reserves diminish to:

A) $0.

B) $6 million.

C) $0. 72 million.

D) $0. 84 million

Answers

The presented information indicates that the company's excess reserves have decreased to $0.84 million.

Who are these customers, exactly?

An individual or company that orders products or services from that other company is known as a customer. Customers are important since they bring in money. Without them, businesses would not continue to operate.

Customers and consumers are who?

The person making the purchase is the customer. The final user of any service or product is the consumer. Consumers are not permitted to sell any goods or services again. Customers must spend money on a good or service before using it.

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are costs that require future expenditures of cash or other resources. select one: a. committed costs b. sunk costs c. outlay costs d. opportunity costs

Answers

Out of the choices provided above, it can be concluded to state that the outlay costs are the ones that are required under future expenditures of cash or other resources within an organization. Therefore, the option C is correct.

What is the significance of Outlay costs?

The outlay costs of an organization can be referred to or considered as the costs that are compulsorily incurred for the purpose of initiating the core business activities carried by an organization. They are not incurred in present financial period, but are to be incurred at a deferred date for an organizational operation.

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what, according to the memo, are some of the negative effects of air pollution? decreased cognitive performance slow economic growth increased mortality an increase in premature births

Answers

According to the memo, are some of the negative effects of air pollutions decreased cognitive.

Air pollution is contamination of the indoor or outdoor surroundings with the aid of any chemical, physical or biological agent that modifies the herbal characteristics of the surroundings.

Family combustion gadgets, motor vehicles, commercial facilities and woodland fires are commonplace sources of air pollutants.

Air pollution is the contamination of air due to the presence of substances in the ecosystem that are dangerous to the health of humans and other living beings, or purpose harm to the weather or to materials. there are numerous unique sorts of air pollutants, including gases, particulates, and organic molecules.

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in 2007, (nominal) interest rates were about 4.5% and inflation was about 2.8%. what was the real interest rate in 2007? group of answer choices

Answers

The real interest rate in 2007 is 1.045 / 1.028 = 1.0165; real rate = 1.65%

Interest is the price from a borrower or deposit-taking economic group to a lender or depositor of an amount above reimbursement of the foremost sum (this is, the quantity borrowed), at a particular rate.[1] it is wonderful from a rate which the borrower may also pay the lender or a few third parties. it's also awesome from dividend which is paid through a corporation to its shareholders (proprietors) from its profit or reserve, but not at a particular price determined in advance, as a substitute on a pro-rata foundation as a percentage inside the reward won by way of chance taking marketers while the revenue earned exceeds the whole expenses.

For instance, a client might generally pay hobby to borrow from a bank, so that they pay the bank a quantity that's extra than the quantity they borrowed; or a patron may additionally earn interest on their financial savings, and so they'll withdraw extra than they in the beginning deposit. On their financial savings, and so they'll withdraw extra than they in the beginning deposit.

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which organization has primary standard setting authority over private not-for-profit organizations?

Answers

The FASB is in charge of developing standards for both for-profit and for-profit businesses. The GASB is in charge of setting standards for municipal and state governments.

For private not-for-profit organizations, which financial statements are necessary?

Financial position statement (SOP) The SOP is the nonprofit industry's counterpart of the balance sheet for a for-profit business.

a list of your actions.

Statement of operational costs

Cash flow statement.

yearly report

Which of the following describe private, not-for-profit organizations' net asset classes?

both net assets and net assets subject to donor limits. The FASB specifies three types of restricted net asset classes: permanently restricted and temporarily restricted.

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What is a major benefit sales people offer to their business?
A.
ability to answer any question a customer has.
B.
ability to arrange generous credit terms for customers.
C.
ability to create repeat sales opportunities.
D.
ability to calculate sales ratios.

Answers

The major benefit that sales people offer to their business is the ability to create repeat sales opportunities. Hence, Option C is correct.

Who are called sales people?

Simply put, a sales representative represents a company's brand and sells goods or services on its behalf. They oversee client connections and function as the main point of contact from the time a lead is first contacted until a sale is made.

Without the fundamental knowledge of a product or service, a salesperson's charm, strong communication abilities, and organizational skills are useless.

If a salesperson is insufficiently knowledgeable about the product, there is nothing to discuss and nothing to sell to a potential customer.

Therefore, Option C is correct.

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which statement is true of gray markets? multiple choice firms find it easy to track exactly how much of their products sell in the gray market. gray market exchanges have become more difficult than ever. gray markets raise the prices that customers must pay for goods. gray market goods can be a boon for consumers. gray markets have helped to shift the balance of power from customers to companies.

Answers

Gray market products might be advantageous for buyers is the true statement.

An unregulated market for financial securities is known as a gray market. When a stock that has been halted from trading trades off the market or when new securities are purchased and sold before official trading begins, this is known as gray (or "grey") market trading. Because it is a "when issued" market, the gray market enables the issuer and underwriters to evaluate demand for a new offering (i.e., it trades securities that will be offered in the very near future). Although it is an unauthorized business, the gray market is lawful.

The import and selling of items by unlicensed dealers is another form of "gray market" activity, which is unofficial but not unlawful.

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one of the allegations in a recent fraud was that confirmations of account balances to various banks were determined to be forgeries. auditing standards state that an audit rarely involves the authentication of documentation, nor is the auditor trained as or expected to be an expert in such authentication. what steps could the auditors have taken to ensure that bank confirmations were reliable?

Answers

The following steps could auditor have taken to ensure that bank confirmations were reliable

designing external assuranceauditor's use of appropriate assurance

Attsation is the process of obtaining and evaluating direct communications from third parties in response to requests for information on specific issues affecting statements related to the financial statements.

Auditing Standard #8, Audit Risk, describes the audit risk model. It assesses inherent and control risks, determines an acceptable level of detection risk, and develops an assurance program to achieve a reasonably low level of assurance risk using appropriate assurance at the level of Assertion.

It explains the concept of designing. The auditor should: Assess the risk of material misstatement at the assertion level. ISA 500, “Audit Evidence,” states that the reliability of audit evidence is affected by its source and nature, and the individual circumstances in which it was obtained.

but note that the following generalizations regarding the reliability of audit evidence may be helpful:

• Audit evidence is more reliable when obtained from independent sources outside the organization.

• Audit evidence obtained directly from the auditor is more reliable than audit evidence obtained indirectly or by inference.

• Audit evidence is more reliable when it is in document form.

• Original audit evidence is more reliable than photocopy or fax audit evidence.

Accordingly, audit evidence in the form of original written responses to requests for confirmation from third parties unrelated to the audited entity should be viewed separately. Significantly reduces the risk of misrepresentation of related claims to an acceptably low level.

Auditor may request external confirmation of the terms of any contract the company has with a third party or of her transactions. The Other examples of situations in which external confirmation can be used are: • Bank balances and other information from bankers.

• Customer Balance.

• Investments purchase

• Vendor balance.

he reliability of audit evidence obtained from external assurance depends, among other things, on the auditor's use of appropriate assurance procedures in designing external assurance requirements, performing external assurance procedures, and evaluating their results.

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if interest rates increase, business investment expenditures are likely to and consumer durable expenditures are likely to . a. increase, increase b. increase, decrease c. decrease, increase d. decrease, decrease e. be unaffected, be unaffected

Answers

if interest rates increase, business investment expenditures are likely to decrease and consumer durable expenditures are likely to decrease.

Interest rates can influence the amount of money that lenders and investors are willing to save and invest. An increase in demand for loanable funds raises interest rates, while an increase in supply lowers rates.

Capital operations are addressed by investment expenditure. It includes loan repayment, authority loans and advances, and direct investment expenditure (equipment and real estate acquisitions, new work, major repairs)

Consumer durables, also known as "durable goods," are goods that do not require frequent purchases and last at least three years. Economists pay close attention to consumer durables consumption because it is a good indicator of the economy's strength.

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planters corp. has an account that was written off in april. in the following month, planters believe that the amount would be collected from the customer in full. the entry to reinstate the account would require

Answers

planters corp. has an account that was written off in April. in the following month, planters believe that the amount would be collected from the customer in full. the entry to reinstate the account would require a debit to the Receivables account - Credit to Uncollectible Account Allowance.

How are uncollectible accounts determined?

By summing together all transactions involving accounts receivable, determine the total credit sales. To calculate the bad debt expenditure, consult the final income statement from the prior year. The total amount of receivables written off as uncollectible is shown below. Subtract the total credit sales from the total bad debt expenditure.

What does Afda having a debit balance mean?

A debit balance typically represents accounts receivable. This occurs because bad debts or debts that are unlikely to be collected have already been taken into account in the counter-asset account. The accounts receivable are simply reduced by such bad debts. A credit balance on an asset account is uncommon.

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when critical path activities can be completed in parallel rather than sequentially, it is called .

Answers

Critical path activities can be completed in parallel rather than sequentially, it is called Assigning professionals full time to a project.

Project crashing is applied in important situations that require a fast and large extrude to a mission's important course. A important course is the roadmap of duties which is probably relying on each distinct and bring about mission completion. If one item gets delayed, the rest of the course does too. Fast tracking consists of the general overall performance of sports activities in parallel, at the same time as crashing consists of the addition of property to a mission.  In fast tracking, there is progressed risk, at the same time as in crashing, there is progressed cost.

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cardinal industries purchased a generator that cost $11,000. it has an estimated life of five years and a residual value of $1,000. it is estimated that it will be good for 5,000 hours. compute the depreciation expense for the first year using the units-of-activity method of depreciation assuming the generator was used for 1,040 hours. a.$2,288 b.$208 c.$2,080 d.$2,000

Answers

Depreciation spreads an asset's cost across its lifetime, keeping track of depreciation expenses is crucial for reporting purposes. Depreciation cost is $2080

Calculate depreciation expense?

Given: A generator costs $1000

Remaining value is $1000.

Generator life expectancy is 5000 hours.

1040 hours were actually spent working within the time period.

Using the units-of-activity method, find the depreciation expense for the first year.

Formula;

Depreciation expense

=(cost - residual value)/total estimated life activity *actual activity per formed

Depreciation cost =11000-1000/5000*1040

first parenthesis

Depreciation costs =10000/5000*1040

Depreciation costs =2*1040

= 2080

As a result, $2080 in depreciation costs are incurred for the first year using the units-of-activity technique.

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market offerings which have elements of both a product and service, and focus on how they make customers feel are called

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Market offerings which have elements of both a product and service, and focus on how they make customers feel are called Core customer values.

A company's marketing offering is a good or service it offers customers in order to fill their demands. A product or service is only one aspect of an offering. It covers the added value that a company provides in the form of customers convenience, superiority, and support to its products. Offerings include things like banking, medical, bus or taxi services, travel agencies, lodging, and tax preparation. Market offerings, in a broader sense, also include other things like people, places, organizations, information, and ideas.

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why are the interest rates of u.s. treasury securities less than the interest rates of equivalent corporate bonds?

Answers

The market uses U.S. Treasury bonds as a benchmark because they have no default risk, whereas corporate bonds all carry some level of default risk (however small).

U.S. Treasury bonds are regarded as a benchmark by the market since they have no default risk, whereas corporate bonds all have some level of default risk (no matter how tiny that risk may be). The interest rate on business bonds is therefore always higher than that on Treasury bonds.

The disparity between corporate or trash bond yields and the yields on U.S. treasuries often widens during times of greater economic uncertainty and around recessions.

Bond spreads did certainly increase during the 2001 recession, as Chart 1's excellent illustration of this phenomena shows. Bond buyers often demand higher interest rates to make up for the risk they are incurring when investing in a particular bond because recessions typically increase the rates of business bankruptcies and defaults. The widening of the margin between low-grade bonds and U.S. Treasury securities was probably also influenced by recent controversies involving corporate governance.

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when betty crocker introduced its asian favorites and mexican favorites flavors of its helper line, it gave special offers to supermarkets to carry the new product and supplemented these offers with consumer advertising. betty crocker's primary objective is to

Answers

Betty crocker's primary objective is to facilitate reseller support.

Producers generally want to help resellers sell their products, and resellers expect producers to support their products. compete with promotional efforts

A reseller is a type of channel partner who acts as a go-between for companies that manufacture, distribute, or provide IT products or services and end users, who can be businesses or consumers.

Working with a reseller can also help you find products faster. A company that needs to buy multiple technology components can do so through a single reseller rather than approaching multiple manufacturers or service providers directly. Customers may be drawn to resellers by competitive pricing.

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suppose that the equilibrium level of gdp increased by $50 billion in a private closed economy where the marginal propensity to consume (mpc) is .6. aggregate expenditures must have increased by:

Answers

Imagine that the marginal propensity to consume (mpc) in a closed, private economy increased by $50 billion from its equilibrium level. 6. The total amount spent must have gone up by $30 billion.

Marginal Propensity to Consume: How Is It Calculated?

The idea that an increase in disposable income leads to an increase in personal consumption is known as induced consumption. The marginal propensity to consume is a statistic used in economics that quantifies this idea. The propensity to consume refers to how much of a person's disposable income they spend on consumption.

The difference between changes in consumption and income is used to compute the marginal propensity to consume. As an illustration, 0.9/1 = 0.9 might be used to illustrate the situation when a person's expenditure rises by 90% for every dollar of additional income.

In the given question,

The growth in the GDP at equilibrium= $50 Billion

Marginal propensity to consume (mpc)= 0.6

Aggregate expenditures= 0.6 x 50 Billion= 30 Billion

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suppose you have invested in a new computer company whose profitability depends on (1) whether the u.s. congress passes a tariff that raises the cost of japanese computers and (2) whether the u.s. economy grows slowly or quickly. what are the four mutually exclusive states of the world that you should be concerned about?

Answers

The four mutually exclusive states will be:

Slow growth with tariff.Slow growth without tariff.Fast growth with tariff.Fast growth without tariff.

What are mutually exclusive states?

A statistical concept known as mutual exclusion refers to two or more events that cannot occur simultaneously. It is frequently used to describe a scenario where one outcome takes precedence over the other. For instance, it is impossible for peace and war to coexist. They can't coexist because of this.

Events that cannot occur at the same time are said to be mutually exclusive. An assortment of situations come to mind, such as right and left hand turns, even and odd numbers on a die, winning and losing a game, or running and walking. Events that are not mutually exclusive may occur simultaneously.

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bird wing bedding can lease an asset for 4 years with payments of $20,000 due at the beginning of the year. the firm can borrow at a 6% rate and pays a 25% federal-plus-state tax rate. the lease qualifies as a tax-oriented lease. what is the cost of leasing?

Answers

The cost of leasing is $56234.47 for bird wing bedding

The Present Value (PV) is an estimation of the current value of a stream of future cash flows. Due to the "time value of money," all future cash flows must be discounted to the present using a rate that accurately reflects the expected rate of return (as well as risk profile).

Cost of leasing = Present value of future cash flows i.e. after-tax lease payments.

After-tax lease payment = $20,000 * (1 -0.25)  = $15000

The discount rate used to calculate present value =After-tax borrowing cost

=Interest rate * (1 -tax)

= 6% * (1 - 0.25)

= 4.5%

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a machine with a cost of $132,000 and accumulated depreciation of $87,000 is sold for $51,000 cash. the amount that should be reported as a source of cash under cash flows from investing activities is:

Answers

The amount that should be reported as a source of cash under cash flows from investing activities is $51,000.

Write a short note on cash flows.

Generally speaking, cash flows from investment operations refer to funds earned or spent on long-term assets that the business has bought or sold. Cash outflows result from investing activities including the purchase of investment securities, business acquisitions, and capital expenditures for plant, property, and equipment Sales of non-current assets including machinery and equipment, companies, and investment securities generate inflows. The capital expenditures made to maintain the correct upkeep of and additions to a company's physical assets to support its effective operation and competitiveness are the category's most significant item for investors.

According to the explanation above, the $51,000 in cash received from the purchase of the machine should be reported under cash flow from investing operations.

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a company bought a new $62,000 heating system. the company paid $58,800 cash and was given a trade-in of $3,200 on an old heating system. the old system had an original cost of $55,900 and accumulated depreciation of $50,600. if the transaction has commercial substance, the company should record the new heating system at:

Answers

New heating system = $62,000

Fair value is used to calculate the cost price of the acquired item. The fair value of the asset given up will be used if it is possible to determine the fair value of both the asset acquired and the asset is given up. It is possible to use that value unless the fair value of the acquired asset is more obvious.

Measurement of New Heating System :

Cash                   =  $58,800

Trade-In Value  = $3,200

Total                     = $62,000

Therefore, a company bought a new heating system for $62,000.

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lauren is an administrative assistant at a big law firm. while her days are busy answering phones, preparing documents on the computer, and scheduling appointments, it is mostly sedentary work. lauren has poor eating habits and is overweight. because of a family history of heart disease, lauren's doctor suggested that she join a new weight loss support group at the hospital that teaches healthy lifestyle changes such as diet and exercise. this is an example of

Answers

The example by Lauren is secondary prevention.

The goal of this prevention is to lessen the effects of illnesses that have already had an impact on a person.

This implies that one must move quickly to combat the sickness as soon as feasible in order to stop its progression and engage in activities that can help one return to their previous state of health. To prevent a serious impact in the future, this is done.

The person begins by getting regular checkups and screening tests in the early stages of being affected - adhering to a healthy diet Lauren has already started eating unhealthily and she is now overweight, which means she is already affected by various diseases or at risk of such diseases, so she is past the primary prevention which includes not engaging in any unhealthy activities from day one.

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roland wants to avoid paying for the training program and claims the contract is indivisible and thus unenforceable. is he correct?

Answers

Indeed, if Roland could prove that Parna's employment as a poker dealer was the primary goal of the contract, then declaring certain provisions unlawful would significantly alter the terms of the agreement.

By paying, what do you mean?

To pay someone is to give them money in order to fulfill a duty or settle a debt. Pay is another word for exchanging money for something. Another definition of pay is salary or wages. Pay can be used in a wide variety of verbal and noun contexts.

Who pays the bill and what is their name?

Payer and payor are synonymous terms. the person who makes the payment, fulfills the claim, or resolves a debt. For instance, the payor is the individual who writes the check or the employer who pays the employee.

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a machine had an estimated useful life of 5 years, but after 3 years, it was decided that the original estimate of useful life should have been 10 years. at that point, the remaining cost to be depreciated should be allocated over the remaining:

Answers

The answer is that the remaining cost to be depreciated should be allocated over the remaining of 7 years of useful life.

What is years of useful life?

It is an estimation of the average number of years an asset is considered useable before its value is fully depreciated. The IRS (Internal Revenue Service) employs useful life estimates to determine the amount of time during which an asset can depreciated. There are also many factors that will affect the useful life such as usage patterns, the age of asset at the time of purchase, and technological advances.

Now, let's calculate the years of useful life of the machine that given from the question.

Original life of the machine = 5 years
Revised useful life of the machine = 10 years

Life expired till the time of revision = 3 years

Remaining useful life as per estimates

= Revised useful life of the machine - original life of the machine
= 10 - 3
= 7 years

Therefore, the remaining cost to be depreciated should be allocated over the remaining 7 years of useful life.

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calculate the annual coupon payment if the semi-annual coupon paying bond price is $1,128, the yield for the bond is 10%, the bond's face value is $1,000 and matures in 9 years.

Answers

$121.90 will be annual coupon payment.

To determine the yearly coupon payment on a bond, just multiply the bond's face value by the annual coupon rate. That instance, if a bond has a face value of $1000 and an annual coupon rate of 10%, the yearly coupon payment is 10% of $1000, or $100.

A coupon, also known as a coupon payment, is the yearly interest rate paid on a bond that is stated as a percentage of the face value and is paid from the date of issuance until maturity. Coupons are often described in terms of the coupon rate (the sum of coupons paid in a year divided by the face value of the bond in question).

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