Banks and other lending institutions _______

Sooner Machinery Company purchased a delivery truck at a cost of $56,000 on March 10, 2018. The truck has a useful life of six y

Fofino [41]

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $56,000

Useful life= 6 yearsd

Salvage value= $5,000

a. To calculate the annual depreciation, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (56,000 - 5,000) / 6= $8,500

Year 1:

Annual depreciation= (8,500/12)*10= $7,083.33

Year 2:

Annual depreciation= $8,500

b. To calculate the annual depreciation, we need to use the following formula:

Annual depreciation= 1.5*[(book value)/estimated life (years)]

Year 1:

Annual depreciation= [(1.5*8,500)/12]*10= $10,625

Year 2:

Annual depreciation= [(51,000 - 10,625)/6]*1.5

Annual depreciation= $10,093.75

4 0

3 years ago

What is goodwill in a business sale and why is it amortized in the business financial statements

astra-53 [7]

Answer:

See below

Explanation:

Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.

The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.

Goodwill is amortized because the business benefits from the goodwill for many years. In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.

7 0

4 years ago

Assume that all fast-food restaurants employ many minimum wage workers. suppose 20,000 people in pennsylvania work in fast-food

schepotkina [342]

Whenever min. goes up, taxes increase, prices on food, goods../ are higher price, and especially gas...

4 0

4 years ago

Chapter 7 of the Bankruptcy Act is designed to do which of the following? a. Establish the rules of reorganization for firms wit

madam [21]

Answer: c. Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and allow insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt.

Explanation:

When a person or entity files for Chapter 7 Bankruptcy, a trustee is appointed that will sell off the assets of the entity to enable repayment of debt to the creditors. As such, the entity will not be allowed to touch the assets thereby providing safeguards against their withdrawals by same.

After all assets are sold, any remaining debt is forgiven so that the debtor owes no more debt. This will then given them a chance to start over without having to worry about the previous debts they accumulated.

3 0

3 years ago

___________ is the total set of managerial activities that an organization uses to create its products or services.

Lemur [1.5K]

Answer:

(c) Operations management

Explanation:

Operations management :

Operations management is the organization of strategic policies to make the most elevated level of proficiency conceivable inside an association.

It has more focus about changing over materials and work into products and enterprises as proficiently as conceivable to augment the benefit of an association.

It includes taking advantage of your organization assets. These can include your workers innovation ,gear and so on.

8 0

4 years ago

Banks and other lending institutions​ ________.

Banks and other lending institutions ________.