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2 years ago

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Luxury motors introduced a new car to its already popular sedan line. The new car sold very well in its first year, so the compa

ny was surprised to find that its overall sales volume remained about the same as did its market share. What is the likely reason for this

1 answer:

kiruha [24]2 years ago

5 0

The company experienced cannibalization from the new car from its existing product line.

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3 years ago

Identify the accounting assumption or principle that is described below. (a) Belief that a company will remain in operation for

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3 years ago

On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products.

Butoxors [25]

Answer:

Straight line for 2015-2020= $37,500 each year

Double Declining 2015 = $83,500, other years are explained

Untis of production 2015= $45,000.2, other years are in the explanation.

Explanation:

The completion of the question is as follows

FOr Units of Production, (Assume annual production in platings of 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)

The question is to determine and compute the depreciation expense for 2015-2020 as follows

a) Straight line method

Formula = Cost of Equipment - The residual value / useful life of the equipment

= $250,500- $25,500 / 6 years

= $37,500

Year 2015 = $37,500

Year 2016 = $37,500

Year 2017 = $37,500

Year 2018 = $37,500

Year 2019 = $37,500

Year 2020 = $37,500

b) Double Declining Balance

Formula = The straight line method rate x 2 x The net book value of the machine

= 1/6 x 2 x $250,500

2015= $83,500

2016 = 1/6 x 2 x $250,500- $83,500 = $55,666.67

following the same process of getting the book value for each year, subtract the depreciation from the book vaule for the next year

2017= 31,111.11

2018= 24,740.74

2019= 16,493..83

2020= 7,487.65

c)The unit of productio method

First we get the unit cost = The Cost of the machine - its salvage value/ the number of cuttings

= $250500-$25500 / 700,000 cuttings = 0.32143

Year 2015 = 0.32143 x 140,000 = 45,000.2

Year 2016 = 0.32143 x 180,000= 57,857.4

Year 2017 = 0.32143 x 100000= 32,413

Year 2018 = 0.32143 x 110,000= 35,357.3

Year 2019 = 0.32143 x 80,000= 25,714.4

Year 2020 = 0.32143 x 90,000= 28,928.7

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3 years ago