A specific group of related businesses in known as a/an ________

On January 1, Year 1 Missouri Co. purchased a truck that cost $49,000. The truck had an expected useful life of 10 years and a $

serg [7]

Answer:

The amount of depreciation expense recognized in Year 2= $7,800.

Explanation:

Determine the depreciation base

The depreciation base = Acquisition cost - Residual/Salvage value.

The depreciation base = 49,000 - 5,000

The depreciation base = $44,000.

Determining the depreciation rate

The depreciation rate = depreciation base / Useful life

The depreciation rate = 44,000/10

The depreciation rate = $ 4,400.

To determine depreciation % rate

Depreciation % rate = (The depreciation rate / depreciation base) × 100

Depreciation % rate = (4,400 / 44,000) × 100

Depreciation % rate = 10 %

But since Missouri Co. uses double declining balance method of depreciation, the correct depreciation % rate is 10 × 2 = 20%

Determining the depreciation expense for year 2

Year 2 depreciation expense is computed as follows:

(Acquisition cost - year 1 depreciation expense) × Depreciation % rate

Depreciation expense for year 2 is computed as:

Acquisition cost × Depreciation % rate = 49,000 × 20%

Year 1 depreciation expense = $9,800.

Therefore year 2 depreciation expense = (49,000 - 9,800.) × 20%

Therefore year 2 depreciation expense = $ 7,800.

8 0

3 years ago

Camino’s cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer fr

aniked [119]

Answer: -$140000

Explanation:

Total operating expenses, = fixed costs + variable cost

Fixed cost is 20% = $60000

Variable cost is 80%

Therefore Total Operating expenses is $300000

When we subtract the total operating expenses (300000) from the total revenue (160000) , we get -140000.

Camino's is having a net operating loss of $140000. To make profit, they need to sell above 37500 cups

7 0

2 years ago

What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years

goldfiish [28.3K]

The answer is B 15%
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3 0

2 years ago

In 2017, Blake purchased a new home. In addition to the purchase price of $200,000, he paid $700 in legal fees and $2,000 in rec

slavikrds [6]

Answer:

$207,700

Explanation:

Blake's basis in his home in 2017 = purchase price + legal and administrative fees = $200,000 + ($700 + $2,000) = $202,700

Since the deck that Blake added to his home is considered an improvement that is permanent and increases the home's value, it will also increase the home's basis = $202,700 + $5,000 = $207,700

5 0

3 years ago

The ___________ is a statement for the daily business transactions. it includes the list of checks and balances for the office f

Leto [7]

The Date sheet is a statement for daily business transactions. it includes the list of checks and balances for the office for a specific date of service.

A business transaction is an economic event involving a third party that is documented in the accounting system of a company.

Such a transaction needs to have a monetary value. Business transactions include, for example:

In a specific diary, such as a purchasing journal or sales journal, high-volume commercial transactions may be documented.

These journals are used to record business transactions, which are then regularly compiled and submitted to the general ledger.

Transactions with a lower volume are submitted straight to the general ledger. The financial accounts of the company eventually include a summary of these transactions.

A source document must always be used to back up a business transaction. A purchase order, for instance, might be used to facilitate the purchase of items from a supplier and the payment of wages to an employee.

Learn more about business transactions here

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8 0

1 year ago

A specific group of related businesses in known as a/an _________.