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Archy [21]
2 years ago
11

On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo was expected to have a six ye

ar useful life and a $10,000 salvage value. On January 1, Year 5 the limo was sold for $30,000 cash. Assuming Raven uses straight-line depreciation, the Company would recognize a
Business
1 answer:
MAXImum [283]2 years ago
4 0

Assuming Raven uses straight-line depreciation, the Company would recognize a $2,000 gain.

<h3>What is straight-line depreciation?</h3>

The simplest way to determine depreciation over time is through straight-line depreciation. According to this strategy, an asset's value is reduced by the same amount for each year that it is in use.

<h3>Depreciation formula:</h3>

(Depreciation expense per year = (Cost of the asset - Salvage value) ÷ Useful life.

The given data is -

The cost of asses is given as $64,000.

The salvage value is given as $10,000.

The sole price is $30,000.

Calculation for the depreciation-

Depreciation expense per year = ($64,000 Cost - $10,000 Salvage) ÷ (6               Year life)

Depreciation expense per year = $9,000

Accumulated depreciation on January 1, Year 5 = ($9,000 per year) × (4 years)

Accumulated depreciation on January 1, Year 5 = $36,000.

Book value = $64,000 Cost - $36,000 Accumulated depreciation

                    = $28,000

Gain on sale = $30,000 Sales price - $28,000 Book value

                     = $2,000)

Therefore, the gain on the scale is  $2,000.

To know more about calculation for annual depreciation using the straight-line depreciation method, here

brainly.com/question/27971176

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Ben and Sam Jenkins formed a partnership. Ben contributed $8,000 cash and a used truck that originally cost $35,000 and had accu
Airida [17]

Answer:

The combined total capital that would be recorded on the partnership books for the two partners is $79,000

Explanation:

Partnership : In partnership, there are two or more members who are called partners which are ready to share the profit or loss percentage according to their agreed ratio

The combined total capital for both partners is shown below:

= Contributed cash + truck fair value + garage fair value

= $8000 + $ 16,000 + $55,000

= $79,000

The other cost like purchase price, depreciation, construction cost is irrelevant for computation. Thus, these cost will not be considered.

Hence, the combined total capital that would be recorded on the partnership books for the two partners is $79,000

3 0
3 years ago
The Fisher formula is expressed as _____ where R is the nominal rate, r is the real rate, and h is the inflation rate.
Elis [28]

Hello !

Answer :

The Fisher formula is expressed as 1+R = (1 + r) x (1+ h) where R is the nominal rate, r is the real rate, and h is the inflation rate.

3 0
2 years ago
With a regressive tax system, as the level of income increases in an economy, the average tax rate will: 
A. Increase
B. Decreas
Ostrovityanka [42]

Answer:

The correct answer to the following question is option B) decrease.

Explanation:

Regressive tax is that of tax which is imposed in such manner that when the income level in the economy increases , the average tax rate would decrease. This type of tax has heavy burden on the low income people as it takes high proportion of their income. So it can be said here that there is an inverse relationship between tax payer's ability to pay ( which can be measured in income , assets or consumption) and the tax rates imposed.

6 0
3 years ago
Christy spent $500 over her budget on gifts during the holidays. in addition to her regular job, she took a part-time job at the
allsm [11]
5 weeks 500/(12x10) =4ish then round up
8 0
3 years ago
Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facil
neonofarm [45]

Answer:

a. Maximin =  19.0

b. Minimax  = 17.6

c. Hurwicz ( 0.40)  = Taiwan

d. Equal likelihood = Taiwan

Explanation:

Remember, we are told to: Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax

a) Maximin: Since the payoff is cost, we begin by determining the maximum cost for each alternative and then selecting the one which gives the minimum of these maximums. (minimax)

b) Minimax: Since the payoff is cost, we begin by determining the minimum cost for each alternative and then selecting the one which gives the maximum of these minimums. (maximin).

c) Hurwicz (0.40): In this method, we add and multiply each payoff value by alpha (0.4).

South Korea = 15.2 (0.4) + 21.7 (0.6) = 19.1 ( remember, in $ millions)

China = 17.6 (0.4) + 19.0 (0.6) = 18.44

Taiwan = 14.9 (0.4) + 19.2 (0.6) = 17.48

Poland = 13.8 (0.4) + 22.5 (0.6) = 19.02

Mexico = 12.5 (0.4) + 25.0 (0.6) = 20

From the values above we select the minimum outcome since the company is looking at saving cost. Which is Taiwan; having the lowest cost of $17.48 million.

d) Using the formula \frac{P_{1} +P_{2}+P_{3}...P_{n}   }{n} where P = payoffs value, n = number of events.

South Korea =  15.2 + 21.7 + 19.1 /3 = 18.66

China = 17.6 + 19.0 + 18.5 /3 = 18.36

Taiwan = 14.9 + 19.2 +17.1 /3 = 17.06

Poland = 13.8 + 22.5 + 16.8 /3 = 17.7

Mexico = 12.5 + 25.0 + 21.2 /3 = 19.56

Taiwan should be selected since it has the lowest cost of $17.06 million.

4 0
3 years ago
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