1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tia_tia [17]
2 years ago
7

10 points Item Skipped eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 7 Assume Organic Ice Cream Compa

ny, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $20,000. The estimated useful life was four years, and the residual value was $2,180. Assume that the estimated productive life of the machine was 9,900 hours. Actual annual usage was 3,960 hours in Year 1; 2,970 hours in Year 2; 1,980 hours in Year 3; and 990 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.
Business
1 answer:
serious [3.7K]2 years ago
3 0

The completion of separate depreciation schedules for each of the alternative depreciation methods is as follows:

<h3>a. Straight-line Method:</h3>

Year          Cost         Annual Depreciation     Accumulated      Net Book

                                                                         Depreciation          Value

Year 1     $20,000             $4,455                       $4,455            $15,545

Year 2    $20,000             $4,455                          8,910              11,090

Year 3    $20,000             $4,455                        13,365              6,535

Year 4    $20,000            $4,455                        17,820               2,180

<h3>b. Units-of-production Method:</h3>

Year          Cost         Annual Depreciation     Accumulated      Net Book

                                                                         Depreciation          Value

Year 1     $20,000             $7,128                         $7,128            $12,872

Year 2    $20,000            $5,346                         12,474               7,526

Year 3    $20,000            $3,564                        16,038               3,962

Year 4    $20,000            $1,782                         17,820               2,180

<h3>c. Double-declining-balance Method:</h3>

Year          Cost         Annual Depreciation     Accumulated      Net Book

                                                                         Depreciation          Value

Year 1     $20,000             $10,000                       $10,000         $10,000

Year 2    $20,000              $5,000                          15,000            5,000

Year 3    $20,000             $2,500                           17,500            2,500

Year 4    $20,000                $320                           17,820             2,180

<h3>Data and Calculations:</h3>

Cost of asset = $20,000

Residual value = $2,180

Depreciable amount = $17,820 ($20,000 - $2,180)

Estimated productive life = 4 years or 9,900 hours

<h3>Annual depreciation rates:</h3>

Straight-line method = $4,455 ($17,820/4)

Units-of-production Method per unit = $1.8 ($17,820/9,900)

Double-declining-balance Method rate = 50% (100/4 x 2)

Learn more about depreciation methods at brainly.com/question/25806993

#SPJ1

You might be interested in
Describe the basic rights of common stockholders. What are the key differences between common and preferred stock?
BARSIC [14]

Answer:

Some rights of common stockholders are given below.

Voting power on major issues.

Ownership in a portion of the company.

The Right to transfer ownership.

Right to receive declared Dividends.

Opportunity to inspect corporate books, minutes file and other records.

The right to sue for wrongful acts.

Right to attend AGM.

Differences between common and preferred stock

Preferred stock have no voting right while common stock holders have voting right.

When interest rates rise, the value of the preferred stock declines, and vice versa.  With common stocks, however, the value of shares is regulated by demand and supply of the market participants.

Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.

Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.

7 0
3 years ago
When the laptop market overtook the desktop market, blue tech inc., a leader in desktop technology, was left at a competitive di
Sedaia [141]

In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>


We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions  

under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression  diseconomies.

5 0
3 years ago
A friend offers you a Coke, a Dr. Pepper, or a 7-Up. You don't like Coke, so after some thought, you take the Dr. Pepper. What i
Leokris [45]
<span>An opportunity cost is the value or benefit that must be given up to acquire or achieve something else. In this case whatever you choose (Coke, Dr.Pepper or 7-UP) everything would be free , at zero cost. This means that the opportunity cost in this case is zero, because the drink is free.</span>
4 0
3 years ago
The present government has initiated the tax reforms such as relaxation of taxes on relaxing a property sales tax, and removal o
DochEvi [55]

Answer:

= the IS curve shifts right and the

economy moves along the LM curve

Explanation:

= the IS curve shifts right and the

economy moves along the LM curve= the IS curve shifts right and the

economy moves along the LM curve= the IS curve shifts right and the

economy moves along the LM curve

5 0
2 years ago
What was the major financial change between post ww2 borrowers and borrowers after 1970.
Mama L [17]

The major financial change between post ww2 borrowers and borrowers after 1970 was that there were plenty of jobs after World War 2 and the economy was growing at a large extent.

Most of the people believed that their income would not change even though there were plenty of jobs in the economy.

However they all have a constant income from the year 1945 to 1970.

So all the people continued  to borrow more and more money by not attending or joining any post war job in the economy.

Banks were also willing to lend more and more money as they were on the way of high earning through more lending but they get closed.

So after the war people continued to increase their loans and debt ratio in the economy of lending due to which it became the period of great depression.

To know more about post war borrowing here:

brainly.com/question/2675965

#SPJ4

4 0
1 year ago
Other questions:
  • The Technix Computer Corp recently finished construction of a customer service phone center in New Dehli, India. Phone center ag
    5·1 answer
  • Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi
    15·1 answer
  • In times of economic downturn, which of the following businesses is most likely to do well?
    10·2 answers
  • Bison Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recen
    11·1 answer
  • Suppose that Larimer Company sells a product for $24. Unit costs are as follows:
    12·1 answer
  • Gerken Company concluded at the beginning of 2021 that the company's ownership interest in DillCo had increased to the point tha
    12·1 answer
  • The _____ is everything outside an organization's boundaries that might affect it.
    14·1 answer
  • Can I get help on this job application please ?
    15·1 answer
  • Hearing and listening ___________________.
    5·1 answer
  • Which point of the business cycle represents a peak? b c d e
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!