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Nonamiya [84]
3 years ago
11

A factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at th

e end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018. if the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be
Business
1 answer:
natima [27]3 years ago
4 0
Given that a<span> factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at the end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018.

If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be

\frac{375000-75000}{40000} \times4000= \frac{300000}{10} =\$30,000</span>
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3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

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The correct answer is letter "B": 180.

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During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
During 2014, carlita's competitor farside had double the sales of carlita, but it also earned a gross margin of $30,000. what wa
Olegator [25]

The gross margin percentage is 12.5%.

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6 0
2 years ago
If the money supply is growing at a rate of 1010 percent per​ year, real GDP​ (real output) is growing at a rate of 11 percent p
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Answer:

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The Quantity Theory of Money equation is equal to:

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According to this theory, inflation is equal to:

ΔP = ΔM + V - ΔY

Replacing...

ΔP = 1010% + 0 - 11%

ΔP = 999%

So the price change, or inflation rate is 999%.

8 0
3 years ago
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