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fiasKO [112]
3 years ago
13

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

l to the company. The estimated salvage value is $3,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.
Business
1 answer:
e-lub [12.9K]3 years ago
5 0

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

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Use the following information for Shafer Company to compute inventory turnover for year 2.
lidiya [134]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Year 2 Year 1

Net sales $651,500 $583,700

Cost of goods sold 389,300 360,920

Ending inventory 78,500 80,180

To calculate the inventory turnover, we need to use the following formula:

Inventory turnover= Cost of goods sold/ average inventory

Average inventory= (beginning inventory + ending inventory) / 2

Average inventory= 158,680/2= 79,340

Inventory turnover= 389,300/79,340

Inventory turnover= 4.91

7 0
3 years ago
Imagine that you are the practice’s Compliance Officer. What advice would you give to Helen? Discuss the circumstances under whi
Damm [24]
The results of any drug test should remain confidential between the patient, the doctor or nurse, and the head of the human resource department of the company. This means that the doctor or nurse is not allowed to release the results to other people.
6 0
3 years ago
True or False?
exis [7]

Answer:

a. Financing for public corporations must flow through financial markets.

FALSE, it can flow through financial markets or financial intermediaries.

b. Financing for private corporations must flow through financial intermediaries.

FALSE, it can flow through financial markets or financial intermediaries.

c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.

FALSE, they are traded in many different markets around the world.  

d. Derivative markets are a major source of finance for many corporations.

FALSE, the major source of financing for corporations are stock markets.

e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.

FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.

f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.

FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.

7 0
3 years ago
Esteem needs are the highest level in Maslow's hierarchy of needs. True False
Anit [1.1K]

Answer:

False

Explanation:

Maslow's hierarchy of needs is a motivational theory which passes through five types of needs that are presented below:

1. Physiological needs: These are the needs which are for survival i.e food, cloth, home, air

2. Safety needs: This need represents security and safety with respect to personal, financial, etc.  

3. Social needs: These needs depicts that an individual is interested in social groups or not. It helps the person not to feel isolated, alone, etc

4. Esteem needs: The esteem needs represent the respect he or she getting  

5. Self-actualization needs: As the name suggests, it is self-actualizing so that the person gets to know about his potential

The chart shows from 5 to 1 i.e self actualization to physiological needs

7 0
3 years ago
The IRR rule states that firms should accept any project offering an internal rate of return in excess of the cost of capitalA.
gtnhenbr [62]

Answer:

A. True

Explanation:

Internal rate of return abbreviated as  IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR,  the net present value of the project's cash inflows is set at zero.  Getting the actual value of the IRR is through trial and error, or specially programmed software.

IRR shows the growth rate a project or an investment is expected to generate. The higher the value, the better. As a rule, only projects whose IRR is greater than the minimum required rate of return should be accepted. The required rate of return is the same as the cost of capital for the project.

6 0
3 years ago
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