Carmel Corporation is considering the purchase of a machine costing $36,000 with a 6-year useful life and no salvage value. Carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment?
A. $18,000.
B. $6,000.
C. $21,000.
D. $36,000.
E. $7,000.
Answer: A
You might also like to view...
For a given contingent liability, the company has the choice of either recording it on the balance sheet or disclosing it in the notes
a. True b. False Indicate whether the statement is true or false
The ______ are part of the finished products, and the amount of usage can be tracked on a per-unit basis.
a. indirect materials b. direct materials c. centralized material purchases d. decentralized material purchases
According to the economic order quantity model, if the holding costs are high, then ______.
a. our order quantities will be smaller to keep our annual holding costs low b. our order quantities will be higher to keep our annual holding costs low c. this is an indication that the quantity held in inventory is too high d. this is an indication of poor inventory management
The first marine environmental protection convention was:
a. the Barcelona Convention. b. the Helsinki Convention. c. the London Convention. d. the Montreal Protocol.