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lidiya [134]
3 years ago
11

Cleveland Corporation acquired a machine for $42,000 and has recorded depreciation for two years using the straight line method

over a 5 year life and $7,000 residual value. At the start of the third year of use, Cleveland revised the estimated useful life to a total of 10 years. Estimated residual value declined to $0. What is the book value of the machine at the end of 2 full years of use
Business
1 answer:
dsp733 years ago
7 0

Answer:

The book value of the machine at the end of year 2 is $35,000

Explanation:

Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.

Depreciation per year = ( Cost of Machine - Residual Value ) / Useful life

Depreciation per year = ( $42,000 - $7,000 ) / 10 years

Depreciation per year = $3,500 per year

Book value of machine at the end of year 2 = $42,000 - ( $3,500 x 2 )

Book value of machine at the end of year 2 = $42,000 - $7,000

Book value of machine at the end of year 2 = $35,000

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The main function of the federal reserve system is to.
Anettt [7]
Supervising and regulating banks and other important financial institutions to ensure the safety of banking. It also protects the the credit of the consumers.
7 0
2 years ago
On January 1, 20X2, X Company made modifications to an asset used in its manufacturing operations in order to extend its useful
qwelly [4]

Answer:

Will capitalize the cost of the modification and will recognize depreciation expense of $3,000.

Explanation:

Provided information, we have the following details.

Original value of asset = $30,000

Accumulated depreciation = $12,000

Therefore carrying value of asset = $30,000 - $12,000 = $18,000

Remaining life of asset = 5 years

When an additional modification is done, cost of modification = $6,000

Revised life of machine due to modification = 8 years

Thus, the modification cost will also be capitalized.

Depreciation each year = ($18,000 + $6,000)/8 = $3,000 each year.

Therefore, correct option is

c. Will capitalize cost of repairs and will charge depreciation of $3,000 each year

7 0
3 years ago
_____ refer(s) to the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it
spin [16.1K]

Answer:

<u>Crowd-sourcing</u>

Explanation:

Like the term "outsourcing" conveys assigning task performed by own workforce to outside specialized firms, "crowd-sourcing" refers to breaking down a huge project which was initially performed by a single individual, and assigning the small parts to a large group.

Such an activity speeds up the performance of the project as a whole i.e the project gets completed lot more efficiently.

Crowd-sourcing helps a company utilize the skill sets unavailable to it within it's own workforce. Secondly such an activity speeds up the tasks and reduces operational costs.

6 0
3 years ago
Fabio Corporation is considering eliminating a department that has a contribution margin of $39,000 and $78,000 in fixed costs.
OleMash [197]

Answer:

a decrease of $39,000.

an increase of $39,000.

a decrease of $19,500.

an increase of $19,500.

The correct option is the last one,an increase of $19,500

Explanation:

The impact on net operating income when the department is eliminated in Fabio Corporation is the company would lose the contribution margin of $39,000 and avoidable fixed cost,hence overall effect of the elimination is the difference between the contribution margin lost and the avoidable fixed costs which is computed thus:

Lost contribution margin   $39000

Unavoidable fixed cost   $19,500

Total fixed costs

avoidable fixed cost=$78,000-$19,500=$58,500

decrease in overall  net operating income=$58,500-$39,000=$19,500

7 0
3 years ago
Betty, an American, works for an automobile manufacturer in New Jersey. Her manager, Ruth, sends her on an overseas assignment t
ValentinkaMS [17]

Answer: Betty possesses the motivation to succeed and is achievement-oriented.

Explanation:

Betty's manager believes in her ability to succeed in any environment due to her high motivation drive.

Betty most likely has a tendency to succeed at any project she is involved, therefore her manager believes she would be the best person to grow their new branch in Japan.

6 0
3 years ago
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