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iogann1982 [59]
4 years ago
9

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will p

roduce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000.
What is the depreciation cost per unit?

a) $4.40 b) $4.80 c) $0.44 d) $0.48
Business
1 answer:
Roman55 [17]4 years ago
6 0

Answer:

c) $0.44

Explanation:

In order to calculate per unit depreciation, we first calculate total depreciable amount.

Depreciable amount = Cost - salvage value

Depreciale amount = 48,000 - 4000 =$44,000

Depreciation per unit = 44,000/ 100,000 = $0.44/ unit

This is the amount chargeable multiplied by the activity in the appropriate period.

Hope that helps.

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<h3>What is mundane realism?</h3>

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3 0
2 years ago
merchandise is sold for cash. the selling price of the merchandise is $2,600, and the sale is subject to a 6% state sales tax. t
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The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.

As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.

Sales tax = 6% of 2600

Sales tax = 6/100 × 2600

Sales tax = 0.06 × 2600

Sales tax = $156

Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

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8 0
1 year ago
Which statements best describe how governments respond to changes in the business cycle? Check all that apply.
Harman [31]

The correct answer is 2 and 5.

(i) Government refuses to pass budget.

(ii) Government manipulates interest rates.

Another name for business cycle is economic  cycle. The upward and downward movement which is of gross domestic product.

We measure business cycle by way of considering growth rate of real gross which is of domestic product.

7 0
3 years ago
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Pepsi has a strong brand equity. Over the years, Pepsi has introduced Vanilla Pepsi, Lemon Pepsi, Pepsi One, Pepsi Blue, and Pep
antoniya [11.8K]

Answer: These expansions of the Pepsi brand are termed: <u>"(D) Line Extensions".</u>

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3 years ago
An increase in government spending by $100 would, if the mpc = 0. 90, result in an increase in real gdp by?
bixtya [17]

The answer is $1000

As Change in real GDP= Change in gov. spending/(1-MPC)

So

100/(1-0.90)=1000

Gross domestic product is the monetary fee of all finished goods and services made inside a country during a selected duration. GDP affords an economic snapshot of a rustic, used to estimate the scale of a financial system and growth charge. GDP can be calculated in 3 methods, the use of fees, production, or earning.

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5 0
2 years ago
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