CHAPTER 11 Depreciation‚ Impairments‚ and Depletion EXERCISE 11-4 (15–25 minutes) (a) $315‚000 – $15‚000 = $300‚000; $300‚000 ÷ 10 yrs. = $30‚000 (b) $300‚000 ÷ 240‚000 units = $1.25; 25‚500 units X $1.25 = $31‚875 (c) $300‚000 ÷ 25‚000 hours = $12.00 per hr.; 2‚650 hrs. X $12.00 = $31‚800 (d) 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR n(n + 1) = 10(11) = 55 2 2 10 X $300‚000 X 1/3 = $18‚182 55 9 X $300‚000 X 2/3 = 32‚727 55 Total for 2015 $50‚909 (e) $315‚000 X 20% X
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Monmouth Case solution 1. To escape their dependency on a single industry‚ Monmouth managed to reduce their business risk by acquiring small different industrial manufacturers in addition to becoming a market player in the hand tool business‚ by acquiring 3 of the market leaders‚ a move that diversified Monmouth’s business and ultimately reduced their business risk. In analyzing the financial risk‚ the continuous acquisitions have definitely increased the operational risk for the company. Since
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[pic] LEADERSHIP AT AIG: DOES STYLE MATTER? Case Overview This case deals with executive leadership styles. In particular‚ this case deals with American International Group‚ the world’s insurance company‚ and its CEO Maurice “Hank” Greenberg. Greenberg‚ an autocratic leader‚ was recently deposed by his board of directors after problems emerged regarding possible earning manipulation. It describes his leadership style‚ reasons his two sons (former employees) left the company‚ and Martin
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Anthony Morand Master in Business Management 1 – How is the online movie rental business changing? Map the industry’s value chain from end to end. Since the
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Case Study 6 : Retailing in India: The impact of hypermarkets 1. How might a hypermarket located in India appeal to consumers and orient them to shopping in larger stores? - The trick lies in differentiating themselves from local kirana stores. If a hypermarket is offering same products‚ a customer will obviously prefer kirana store over the hypermarket because of the convenience and long years of service. Turning shopping into an experience should be the differentiating factor. This can be done
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Chapter 6 – Markets The role of market • Determining solutions to the economic problem which is wants are unlimited but sources are scarce. • The importance of relative price in reflecting opportunity costs in the goods and services and factor markets The market price paid by consumers for goods and services reflect opportunity costs. Markets for productive resources (natural‚ human and capital)‚ known as factor markets‚ determine the opportunity costs of productive resources
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Apple Computers have found themselves in a very different world today from when they first started in the 1980s. The savviness of today’s consumers and the emergence of new markets and competitors are just a few differences that Apple has faced. Using Porter’s 5 Force Model‚ we will look at the major changes. Intensity of Competitive Rivalry The intensity of competitive rivalry has increased because of the number of competitors‚ the innovations in distribution channels as well as the decrease
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Case 15 Version 2.1 Teletech Corporation‚ 1996 Teaching Note Synopsis and Objectives In January 1996‚ the chief financial officer of this telecommunications company must fashion a response to a raider who claims that a major business segment of this company should be sold because it is not earning a satisfactory rate of return. The case recounts the debate within the company over the use of a single hurdle rate to evaluate all segments of the company versus a riskadjusted hurdle-rate
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RUSSIAN BUSINESS CONTEXT FINAL ASSIGNEMENT GAZ Group Russia: the Gazelle light commercial truck 1. What were the major challenges facing Bo Andersson when
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Case study-ITC LIMITED INTRODUCTION: ITC Limited (BSE: 500875) public conglomerate company headquartered in Kolkata‚ India.[1]Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company‚ and shares ancestry with Imperial Tobacco of the United Kingdom‚ but it is now fully independent‚ and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974 The company
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