1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Schach [20]
3 years ago
11

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be

zero. If the truck is driven​ 27,000 miles during the first​ year, how much depreciation should the business record under the​ units-of-production method?

Business
2 answers:
mel-nik [20]3 years ago
8 0

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. The residual value is expected to be zero. The truck is driven​ 27,000 miles during the first​ year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

Serga [27]3 years ago
3 0

Answer:

$80,040

Explanation:

Please see attachment

You might be interested in
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (U
scZoUnD [109]

Answer:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

                               Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

3 0
3 years ago
Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 4.10%. What rate of retu
Yakvenalex [24]

Answer: 6.6%

Explanation:

The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.

In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.

The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.

Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate

= 2.5% + 4.1%

= 6.6%

5 0
3 years ago
The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and
DerKrebs [107]

Answer:

1. Going concern

2. Economic entity

3. Monetary unit

4. Periodicitys

Explanation:

1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.

2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.

3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.

4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.

6 0
3 years ago
Furs unlimited is using a combination of advertising and personal selling to increase the sales of its fur coats. this activity
My name is Ann [436]

Answer: C. Promotion

Explanation:

Furs unlimited needs to use the technique of marketing mix called promotion, to give more exposure to their products then get more popular that should result in a incrementation of their sales. The purpose of the promotion is also to capture the customer to obtain brand loyalty.

7 0
3 years ago
Look at the picture, which one is the correct answer?
Vinil7 [7]
I think it “A law of demand”?
4 0
3 years ago
Other questions:
  • Where to find your social security number?
    13·1 answer
  • Mailing cash to pay bills is encouraged by the United States Post Office officials.
    13·1 answer
  • You are a manager of a soft drinks company that is planning to go head to head with Coca-Cola to increase market share. Your str
    10·1 answer
  • At the beginning of the recent period, there were 900 units of product in a department, 35% completed. These units were finished
    14·1 answer
  • name something you have purchased in the past year and describe in as much detail as posible how much this good or service incre
    15·1 answer
  • Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space an
    8·1 answer
  • Suppose, you have $20,000 in your account. You receive a monthly
    5·1 answer
  • Wilson Wonders's bonds have 12 years remaining to maturity. Interest is paid annu- ally, the bonds have a S1,000 par value, and
    5·1 answer
  • Robert owns a $214,000 town house and still has an unpaid mortgage of $150,000. In addition to his mortgage, he has the followin
    10·1 answer
  • What is the difference between an absorption spectrum and a standard curve?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!