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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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You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India
iVinArrow [24]

Answer:

1. The size of the economy as a whole grows as a result of free trade.

2. Consumers benefit from free trade.

3. Free trade can reduce cost of trading:

Explanation:

The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:

1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.

2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.

3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.

3 0
2 years ago
If real income rises 4%, prices rise 1%, and nominal money demand rises 4%, what is the income elasticity of real money demand?
goblinko [34]

The income elasticity of real money demand d. 3/4

Increase in real money demand = Increase in nominal money demand - Increase in inflation = 4% - 1% = 3%

Income elasticity of real money demand = % increase in real money demand / % increase in real income

= 3% / 4%

= 3/4

Income elasticity of demand is a monetary measure of how responsive the amount of demand for a very good or provider is to trade-in earnings. The formulation for calculating earnings elasticity of demand is the percentage change in quantity demanded divided by using the percent change in earnings.

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5 0
1 year ago
Hodge Inc. has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a
Burka [1]

Answer:  If the material is reworked and sold, Hodge Inc. has a financial disadvantage of (- 4500).

Let's see why:

1) If we sell the material at its disposal value: We have a cost of $ 74600 and the income from sale would be $ 57400 =

57400 - 74600 = (-17200). We have a loss of $17200.

2) If we rework the material we will have an original cost of $ 74600, an additional cost for reworking of $ 1500 and the income from its sale would be $ 54400 =

54400 - (74600 + 1500) = (-21700) We have a loss of $ 21700.

Then comparing the 2 situations =

(-21700) - (-17200) = -4500. There is a financial disadvantage of $4,500 if the material is reworked instead of selling it as scrap.

6 0
3 years ago
Fatima finds an article on march 16, 2014 titled "benefits of laptops" on the technologynow website. the article was written on
padilas [110]

In citing the source in MLA format, Fatima should place the title as the first to be read or written, followed by the author and citation in the end. So it should be, “Benefits of Laptops” by Michael Gray. Technology Now, August 2, 2013. Web. March 16, 2014.

6 0
3 years ago
Read 2 more answers
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Georgia [21]

Answer: $3360

Explanation:

Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:

SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:

= $4500 - $1000

= $3,500

Therefore, the amount of cash payment that is made by SH to Oakley will be:

= $3,500 - (4% × $3,500)

= $3500 - (0.04 × $3500)

= $3500 - $140

= $3360

Therefore, the amount of cash paid by SH to Oakley is $3360.

7 0
2 years ago
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