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Sophie [7]
3 years ago
8

Leaping Deer Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an es

timated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2015 and was used 2,400 hours in 2015 and 2,200 hours in 2016. What method of depreciation will produce the maximum depreciation expense in 2016
Business
1 answer:
trapecia [35]3 years ago
3 0

Answer:

Units of production method: $76,820

Explanation:

The three most common depreciation methods are: straight line, double-declining, and units of production. We will calculate the depreciation expense for each.

Straight line method:

Depreciable amount= cost - residual value

                                 = 240,000 - 40,000

                                = 200,000

Depreciation by year = depreciable amount / years of useful life

                                   = 200,000 / 8

                                   = 25,000

Double declining method

Depreciation per year = depreciable amount x (2 / useful life in years)

                      = 200,000 x (2 / 8)

                      = 50,000

Units of production method

Depreciation per unit  = depreciable amount / hours of operation

                                     = 200,000 / 12,000

                                     = 16.7

Total depreciation = depreciation per unit x actual units of operation

                              = 16.7 x 2,400 + 2,200

                              = 16.7 x 4,600

                              = 76.820

Therefore, the units of production method results in the highest depreciation expense among the three.

   

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The following materials standards have been established for a particular product: Standard quantity per unit of output 4.6 grams
Setler79 [48]

Answer:

Direct material quantity variance= $15,351 unfavorable

Explanation:

Giving the following information:

Standard quantity per unit of output 4.6 grams

Standard price $ 15.05 per gram

Actual materials used in production 2,400 grams

Actual output 300 units

To calculate the material quantity variance we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4.6*300 - 2,400)*15.05

Direct material quantity variance= (1,380 - 2,400)*15.05= $15,351 unfavorable

6 0
3 years ago
The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. No. Account
mr Goodwill [35]

Answer:

Cruz Company

1. Closing Journal Entries:

Debit Income Summary   $29,043

Credit:

612 Depreciation expense

  —Equipment                                  $2,000

622 Salaries expense                       21,746

637 Insurance expense                      1,567

640 Rent expense                             2,499

652 Supplies expense                        1,231

To close expenses to Income Summary.

Debit 404 Services revenue $37,300

Credit Income Summary                    $37,300

To close Service Revenue to Income Summary.

Debit Statement of Retained Earnings $6,000

Credit Dividends                                                  $6,000

To close Dividends to Statement of Retained Earnings.

Debit Income Summary $8,157

Credit Statement of Retained Earnings $8,157

To close the Income Summary to the Statement of Retained Earnings

2. Cruz Company

Post-Closing Trial Balance as of December 31:

No.  Account Title               Debit           Credit

101  Cash                          $ 18,000

126 Supplies                        11,800

128 Prepaid insurance        2,000

167 Equipment                  23,000

168 Accumulated depreciation

 —Equipment                                     $ 6,500

307 Common stock                               8,443

318 Retained earnings                        39,857

Totals                          $ 54,800      $ 54,800

Explanation:

a) Data and Calculations:

Cruz Company

Trial Balance as of December 31:

No.  Account Title               Debit           Credit

101  Cash                          $ 18,000

126 Supplies                        11,800

128 Prepaid insurance        2,000

167 Equipment                  23,000

168 Accumulated depreciation

 —Equipment                                     $ 6,500

307 Common stock                               8,443

318 Retained earnings                        37,600

319 Dividends                    6,000

404 Services revenue                         37,300

612 Depreciation expense

  —Equipment                  2,000

622 Salaries expense     21,746

637 Insurance expense    1,567

640 Rent expense           2,499

652 Supplies expense      1,231

Totals                          $ 89,843       $ 89,843

b) Income Summary

Service Revenue $37,300

less Expenses       29,043

Net Income           $8,257

c) Statement of Retained Earnings

Retained Earnings, beginning $37,600

Add net income                            8,257

Less Dividends                            6,000

Retained Earnings, ending     $39,857

5 0
3 years ago
Starbucks – a matter of ethics!
Sergeeva-Olga [200]

Yes , Johnson was known to have openly acknowledge that his decision was based in ethics and morality as he talked about Starbucks policy that is made to help keep the third place environment in line with their mission.

<h3> Did his apology and actions promote awareness of an ethical issue? </h3>

Yes, Johnson’s apology is one that calls for awareness regarding the issue as he did apologized to the two men who were involved in the case and also carried on some changes to prevent such scenarios from ever occurring again.

<h3> Did it create a positive or negative difference in the communities Starbucks serves? </h3>

The new policy did make a positive atmosphere in the community as it created a free society where people can study,  work and also socialize while option to buying coffee or food.

<h3>Did it make a positive or negative difference for Starbucks employees and customers?</h3>

Yes, it also created a positive difference for Starbucks customers and employees as it portrays a friendly, safe, and welcoming environment set up already for consumers and a place where people can take a nap without any having any set backs. Employees were also given "unconscious bias training" that will be beneficial for the company.

<h3>Did his apology and actions promote awareness of an ethical issue? </h3>

In the issue with Starbucks, Johnson made an apology and the actions is one that boast awareness in regards to ethical issue. In the apology made by him, one can say yes, it formed a positive or negative difference in the communities where Starbucks is.

<h3>Does Johnson explicitly accept responsibility for the incident</h3>

Yes, Johnson explicitly took responsibility for the incident and he also apologizing and told the newsmen that the video was "hard to watch" since the treatment of the black men was unfair and should not have occurred in that way.

<h3> Does he identify ways to collaborate with others when necessary?</h3>

He did identify ways to work collaborate with others when necessary as he meant with the two men involved in the case and also organize a training for his employees.

<h3>Does he show he understands what his role is in fixing this problem?</h3>

Yes he does this is because he made every effort to deflate the issue and also prevent it from every occurring again.

<h3>Did Johnson’s apology and follow-up actions uphold Starbucks’ mission and core values? </h3>

Johnson’s apology and follow-up actions is one that uphold Starbucks’ mission and core values as he did investigate what happened and implement the right thing to do in such situation.  

<h3>Did Johnson clarify his values and the company’s values in his apology and with his subsequent actions?</h3>

In course of issuing his apology, Johnson did clarify his values and the values of the company as he made effort for the training of the staff again and going to Philadelphia to speak to the two men who were involved in a dialogue.

<h3>Did he identify gaps between stated and actual values?</h3>

Yes he did he identify gaps between stated and actual values as he talks about what the company stands for and others.

He finds the gaps between stated and actual values and his apology did help Starbucks employees figure out if their personal values align with the company’s as they were said yo be given training again.

<h3>If you were the CEO of Starbucks, what would you do after such an incident?</h3>

If I am the CEO,  I will makes sure to take the right steps immediately as Johnson delayed a little bit and as such people protested. I will keep the people up to date with information regarding how the issue is been handled.

Learn more about Ethical Conduct from

brainly.com/question/13383200

#SPJ1

7 0
2 years ago
How is the exchange rate determined in a fixed exchange rate system. (Economics)​
Mariana [72]

In a fixed-exchange rate system, one country's exchange rate is determined by <u>comparing</u> it to another country's rate (or to the value of gold). The purpose of this is to explain one currency in terms of another that is more stable in order to make investments and values more rational and predictable.

6 0
4 years ago
HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Arte-miy333 [17]
I believe that False is the correct choice out of the answers given above.

6 0
3 years ago
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