A company purchased new furniture at a cost of $24,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31?
A. $1200.
B. $350.
C. $4350.
D. $1350.
E. $1050.
Answer: E
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Answer the following statements true (T) or false (F)
1. Stephen Covey identified seven habits in which Habit 1 is Be Proactive. 2. Virtues are more “caught than taught” because they are usually picked up by observation and imitation. 3. Narratives told by our families and organizations are meant to encourage caring, self-discipline and other virtues. 4. Reading literature and wrestling with historical moral dilemmas can help develop our own ethical understandings. 5. Passages are mild life events that we consider when making larger life choices.
Which of the following statements is most likely to be made by a manager with a status quo pricing objective?
A. "A price of $10.00 will not start a price war with our competitors." B. "A price of $10.00 will penetrate the market." C. "A price of $10.00 will provide a 30 percent return on investment." D. "A price of $10.00 should result in a 9 percent increase in sales." E. "A price of $10.00 should maximize profits."
Orange Inc, a cell-phone manufacturer, is an all equity firm. At the end of the current year, the CFO expects EBIT to be $100 and the same earnings are expected annually in perpetuity
The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Orange is 10%. Orange's prime competitor is Verge Inc, manufacturer of the Blueberry smartphone. Verge is identical to Orange Inc in every respect except that Verge has $130.44 of long term debt outstanding. What is the value of Verge Inc? The corporate tax rate is 40%. A) $500 B) $600 C) $630 D) $652 E) $1,000
An effective way for an entrepreneur to establish legitimacy is:
A. to hire experienced employees from competitors. B. to insist on professional behavior from all customer-contact employees. C. to communicate the company's mission clearly and frequently. D. to out-perform the competition by underbidding and over-promising.