Your business is expected to outgrow your initial setup. You are considering either upgrading your kitchen equipment or hiring more employees.

a) The equipment will cost $60,000 with no salvage value and a 5-year life, starting January 1, 2023. You can sell your old equipment for $8,000 (no gain or loss).

B) The two part-time employees will work 15 hours per week at $8 per hour, starting January 1. The employees will not receive vacation pay but you will need to calculate the payroll register for these employees at the same tax rates as the current employees. You will also be responsible for employer taxes for these employees. These calculations can be done in the Payroll tab.

Selecting the option B discuss how your decision differs from the other option and why you chose it. Discuss at least two internal controls you would implement related to your decision.

Answer rating: 100% (QA)

If we choose to hire more employees instead of upgrading our kitchen equipment we will be able to increase the capacity of our business without incurr... View the full answer