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
olga2289 [7]
3 years ago
13

Dexter Industries purchased packaging equipment on January 8 for $98,000. The equipment was expected to have a useful life of th

ree years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,980 hours during Year 1, 6,930 hours in Year 2, and 4,090 hours in Year 3.
Required: 1. Determine the amount of depreciation expense for the three years ended December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. (Note: For STRAIGHT-LINE ONLY, round the first two years to the nearest whole dollar, then round the third year as necessary. For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.)
Business
1 answer:
Shkiper50 [21]3 years ago
3 0

Answer:

a) 30,667 per year

b) year 1 : 41,308

  year 2 :  31,878

  year 3 :  18,814

c)

year 1 $65,333.33  

year 2 $21,777.78  

year 3 $4,888.89  

Explanation:

a)

\frac{Adquisition \: Value- \: Salvage \: Value}{useful \: life}= Depreciation \: coplete \: year

(98,000 - 6,000) / 3 = 30,667

b)

\frac{Adquisition \: Value- \: Salvage \: Value}{cost \: driver}= Depreciation \: rate

(98,000-6,000)/ 20,000 = 4.6

year 1  8,980 x 4.6  =  41,308

year 2 6,930 x 4.6  =  31,878

year 3 4,090 x 4.6  =  18,814

c) double declining rate:

2/useful life = 2/3

then we apply this rate to the carrying value

Year  Beginning Dep-Expense Acc. \: Dep Ending

-    - - -                                                  $98,000.00  

1   $98,000.00   $65,333.33   $65,333.33   $32,666.67  

2   $32,666.67   $21,777.78   $87,111.11   $10,888.89  

3   $10,888.89   $4,888.89   $92,000.00   $6,000.00  

You might be interested in
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 32.50 Total fixe
Neporo4naja [7]

Answer: 26.5% increase

Explanation:

Current profit = Sales - Variable costs - fixed costs

= ((32.50 - 16.50) * 360 bears) - 1,420

= $4,340

Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears

New profit;

= ((32.50 - 16.50) * 432 bears) - 1,420

= $5,492

Effect of sales increase = ( 5,492 - 4,340) / 4,340

= 26.5% increase

8 0
3 years ago
MNCs can use their global presence toa. take advantage of underpriced labor services available in certain developing countries.
denis23 [38]

Answer:

a. take advantage of underpriced labor services available in certain developing countries.

b. gain access to special R&D capabilities residing in advanced foreign counties.

c. boost profit margins and create shareholder value.

d. avoid regulations and lower tax burdern

Explanation:

Multinational corporation is a company that operates locally in its home country and also aborad. It usually maintains a central office that coordinates business activities.

MNCs have various advantages which includes:

- taking advantage of lower priced labour in developing countries, for example some companies take advantage of cheap labour in China to produce their goods.

- when a company operates in an advanced economy it will take advantage of research and development there.

- regulations and tax burdens can be avoided by setting up manufacturing plants in countries with low regulatory policies.

- MNCs boost shareholder profits by taking advantage of their multiple locations to gain more profits.

7 0
2 years ago
Read 2 more answers
On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at
OLEGan [10]

Answer:

a. Debit Depreciation expense $6,400

   Credit Accumulated depreciation $6,400

b. $33,600

Explanation:

Depreciation is the systematic allocation of cost to an asset. It is given as

Depreciation =  (Cost - salvage value)/estimated life

When accumulated over time, it is known as accumulated depreciation which is deducted from the cost to get the carrying amount of the asset.

Depreciation

= (100000 - 10000)/6

=$15,000

Between 2015 and start of 2019 is 4 years hence

accumulated depreciation at start of 2019

= $15,000 × 4

= $60,000

Net book value  = $100,000 - $60,000

= $40,000

If the asset life is to be extended by 3 years, the remaining useful life changes from 2 to 5 years.

New depreciation rate

= (40,000 - 8000)/5

= $6,400

To record this for 2019,

Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

The book value of the equipment at the end of 2019

= $40,000 -  $6,400

= $33,600

4 0
3 years ago
Why​ wouldn't investors invest all of their money in software companies instead of in less profitable​ companies? (Focus on risk
Tamiku [17]

Answer and Explanation:

Risk and return are equal companions if we invest in a market with a higher risk that's mean this type of market provides a higher return.

If Investors invest their whole money in the high-risk market for there high return, may they get a huge loss.

So, The exposure must be balanced by investments in diversified markets with different risk weights.

7 0
3 years ago
__________ begins with new-product purchases first by innovators and then by early adopters.
elena-s [515]

Diffusion of innovation

4 0
3 years ago
Other questions:
  • School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others
    6·2 answers
  • Nichols Enterprises has an investment in 26,000 bonds of Elliott Electronics that Nichols accounts for as a security available f
    8·1 answer
  • Which describes a type of tax that funds city programs?
    7·1 answer
  • Foxx Corp.'s comparative balance sheet at December 31, 2018 and 2017 reported accumulated depreciation balances of $1,245,000 an
    6·1 answer
  • Which of the following is true of the capital requirement? Check all that apply.
    13·2 answers
  • Identify and explainthe benefits and problems associated with high economic growth
    6·1 answer
  • A company purchased equipment valued at $66000. It traded in old equipment for a $9000 trade in allowance. The old equipment cos
    5·1 answer
  • How should a loss contingency that is reasonably possible and for which the amount can be reasonably estimated be reported
    12·1 answer
  • Have you ever financed anything on a short term or long term arrangement? ​
    5·1 answer
  • Take it and go................................
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!