Business what kind education do you need

A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer usefu

e-lub [12.9K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.

A) Straight-line:

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

Annual depreciation= (251,800 - 3,400)/3= $82,800

B) Double declining balance:

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Year 1= (248,400/3)*2= 165,600

Year 2= 55,200

Year 3= 18,400

5 0

3 years ago

On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. De

olasank [31]

Answer:

Dearden, Inc.

Journal Entries to record the transactions:

March 10, 2019:

Debit Investment in Jaffa $526,400

Credit Cash $526,400

To record the purchase of 11,200 shares at $47 per share.

December 31, 2019:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $47 to $45 per share.

December 31, 2020:

Debit Investment in Jaffa $33,600

Credit Gain on Investment $33,600

To record the gain on investment from $45 to $48 per share.

December 31, 2021:

Debit Loss on Investment $44,800

Credit Investment in Jaffa $44,800

To record the loss on investment from $48 to $44 per share.

September 12, 2022:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $44 to $42 per share.

Debit Cash Account $470,400

Credit Investment in Jaffa $470,400

To record the sale of the investment in Jaffa at $42 per share.

Explanation:

For Dearden, Inc. journal entries are recorded on the acquisition date to record the purchase of the investment in Jaffa. Records are also made every December 31 to record the movements in the share price of the investment. Finally, on the date of disposal, records are also made to record the sale of the investment.

4 0

3 years ago

All of the following statements related to preparation of the statement of cash flows under U.S. GAAP and IFRS are true except:

iVinArrow [24]

Answer: IFRS permits the classification of cash outflows for interest expense under operating or financing based on which one results in better cash flows from operating activities.

Explanation: The cash flow statement includes only inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments. These non-cash transactions include depreciation or write-offs on bad debts or credit losses to name a few.

6 0

3 years ago

John Jones owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows:

OleMash [197]

Answer:

a.) $750

b.) Yes, the café is making an economic profit of $25 per year.

Yes, he should stay in the café business.

c.) No, the café is making an economic loss of $75 per year

No, he should not stay in the café business.

d.)$3,250

e.) $250

Explanation:

a) John's accounting profit is his revenue minus his explicit costs:$5,000 - $4,250 = $750

b) In this case, John's opportunity cost of running the café is $725 per year ($1,000 − $275 = $725). Thus, the café is making an economic profit of $25 per year ($5,000 − $4,250 − $725 = $25). Since the café is earning an economic profit, John should stay in the café business.

c) In this case, John's opportunity cost of running the cafe is $825 per year ($1,100 − $275 = $825). Thus, the cafe is earning an economic loss of $75 per year ($5,000 − $4,250 − $825 = −$75). Since the café is earning an economic loss, John should not stay in the café business.

d) John's accounting profit equals his revenue minus his explicit costs. If he doesn't need a loan, then his explicit costs equal $3,250. So, his accounting profit equals $1,750 (= $5,000 − $3,250).

e) To earn a normal profit, the café would have to cover all its implicit and explicit costs. The opportunity cost of John's time is $1,000 per year while the café's accounting profit is only $750 per year. Thus, the café would have to earn additional revenues of $250 per year in order for John to make a normal profit.

8 0

3 years ago

The Analytical Hierarchy Process is used to decide among three projects that we'll call A, B, and C. The total score for project

Ber [7]

Answer:The analysis must be incorrect because the total score should sum up to 1

Explanation: Analytical Hierarchy process is a mathematical model used in determining the viability of a process from sets of process using set criterion ,these criteria are selected such that it determine the like hood of success of the project,the number written above represent the weight of each of the process ,the overall weight of the criterion is always when summed up.

The weight represents the likelihood of the events happening or being successful.

6 0

3 years ago