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Lunna [17]
3 years ago
11

Assume that the total cost of a project is $570,000 and that it is fully depreciable using a straight-line method over 6 years.

There is also a total working capital need of $75,000, and the terminal value is $0. Given only this information, what is depreciation in Year 1?
Business
1 answer:
Lera25 [3.4K]3 years ago
4 0

Answer:

So the depreciation in year 1 is $95,000

Explanation:

Depreciation is the accounting method that is used to allocate cost of an asset over its useful life. It is assumed that an asset losses values over a period and the salvage or terminal value is the value of the good after its useful life has ended.

Straight line method of depreciation assumes equal allocation of depreciation expense over the useful life of an asset.

In the given the asset value is $570,000 and the terminal value is $0

Using the formula

Depreciation= (Value of asset- Salvage value)/Number of useful years

Depreciation= (570,000-0)/6

Depreciation= $95,000 paid equally for 6 years

So the depreciation in year 1 is $95,000

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A ticket to a concert costs $45. You have a ticket and can resell it for $75. Your opportunity cost of actually attending the co
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$75

Explanation:

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2 years ago
Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sal
Salsk061 [2.6K]

Answer:

Net income= $4,836,200

Explanation:

Giving the following information:

Offer:

21,000 units for $77.4

An increase in variable cost= $7.6 per unit

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Variable manufacturing overhead 14.00 1,176,000

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Fixed selling and administrative expenses 13.00 1,092,000

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First, we need to calculate the effect on the income of accepting the offer:

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Effect on income= 1,625,400 - 1,325,100

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6 0
3 years ago
In the past few years, the demand for donuts has decreased. this would be illustrated by a change from?
zepelin [54]

The decrease in demand would be illustrated by a change from A to C.

<h3>What will be the change?</h3>

The demand curve is a downward sloping curve that shows the relationship between price and the quantity demanded. There is a negative relationship between price and quantity demanded.

A change in demand is caused by other factors other than the price of the good. Other factors include a change in income, a change in consumer taste or a change in the price of substitute goods.

When there is a change in demand, the demand curve would shift either to the right or to the left. When demand decreases, the demand curve would shift to the left. When demand increases, the demand curve would shift to the right.

Since, the demand for donuts have decreased, the demand curve would shift to the left. This would be a shift from A to C.

Please find attached the complete question. To learn more about the demand curve, please check: brainly.com/question/25140811

#SPJ1

3 0
1 year ago
Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and
blondinia [14]

Answer: The web team can create a FAQ page.

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This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page

3 0
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