Answer:
He will incur a charge of $2000 due to a special assessment tax for the sidewalk.
Explanation:
The information provided indicates that the lot in question is an interior one, suggesting we should assess only one dimension of the property since the sidewalk is constructed at either the front or the rear.
The lot size is 100 feet in width and 500 feet in length.
The cost for constructing the sidewalk is $40 per linear foot.
The city will pay half of the total expense.
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100 feet multiplied by $40 equals $4000.
The city contributes 50% of the expense, meaning the homeowner is responsible for the remaining 50%.
Thus, the homeowner's share will be 50% of $4000, which is calculated as 0.5 times $4000, yielding $2000.
He will incur a charge of $2000 due to a special assessment tax for the sidewalk.
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Answer:
- What is the sales revenue in the worst-case scenario?
$ 125,032
Explanation:
Initial Scenario
TOTAL Income Statement Unit Quantity
$ 1,035,200 Total Net Sales $ 647 1.600
-$ 352,000 Variable Cost $ 220
-$ 64,000 Depreciation Expenses
$ 619,200 Contributing Margin
-$ 438,000 Annual Fixed Costs
$ 181,200 Segment Margin
Worst Case Scenario
Quantity drops by 3% from 1,600 to 1,552
Price decreases by 2% from $647 to $634
Variable Cost rises by 2% from $220 to $224
Annual Fixed Cost climbs by 2% from $438,000 to $446,760
Depreciation Expenses remain constant.
TOTAL Income Statement Unit Quantity
$ 984,061 Total Net Sales $ 634 1.552
-$ 348,269 Variable Cost $ 224
-$ 64,000 Depreciation Expenses
$ 571,792 Contributing Margin
-$ 446,760 Annual Fixed Costs
$ 125,032 Segment Margin
$347,818. The intrinsic property value is calculated as Net operating income / Capitalization rate. The net operating income is determined by earnings from the property minus the operating expenses associated with it. The earnings from the property amount to $89,760, after accounting for annual expenses of $51,500, leading to a net operating income of $38,260. Consequently, the intrinsic value is calculated at $38,260 / 0.11, resulting in $347,818.
The salvage value applied in this case is B. $20,000.
For year 3, the depreciation amounts to $80,000 calculated using the sum of the Years' Digits method on an asset with a purchase price of $500,000 and a useful life of 8 years. The salvage value taken into account for the depreciation calculations stands at $20,000.
First, it is necessary to record the depreciation expenses for January, February, and March: Depreciation expense over the three months is calculated as ($42,000 - $5,000) x 3/60 = $1,850. As of April 1, the journal entries for the depreciation expense for January, February, and March shall reflect Dr Depreciation Expense 1,850 and Cr Accumulated Depreciation 1,850. Consequently, the book value of the truck becomes $12,400 - $1,850 = $10,550. 1) In the scenario where the truck sells for $12,000 on April 1, the entries will be: Dr Cash 12,000, Dr Accumulated Depreciation 31,450, Cr Gain from Sale 1,450, and Cr Truck 42,000. If it instead sells for $9,000, the entries will adjust to: Dr Cash 9,000, Dr Accumulated Depreciation 31,450, Dr Loss from Sale 1,550, and Cr Truck 42,000. 2) Any gain or loss from the truck's sale should be recorded on the income statement under gains or losses from asset sales. 3) If Swann adopts IFRS and there was a revaluation surplus recorded on the truck, upon selling it for $12,000 on April 1, the entries should show: Dr Cash 12,000, Dr Revaluation Surplus 4,000, Dr Loss from Sale 1,450, and Cr Truck 14,550.
