What might explain why the restaurant isn't named in the lawsuit?

On January 1, Year 1 Missouri Co. purchased a truck that cost $49,000. The truck had an expected useful life of 10 years and a $

serg [7]

Answer:

The amount of depreciation expense recognized in Year 2= $7,800.

Explanation:

Determine the depreciation base

The depreciation base = Acquisition cost - Residual/Salvage value.

The depreciation base = 49,000 - 5,000

The depreciation base = $44,000.

Determining the depreciation rate

The depreciation rate = depreciation base / Useful life

The depreciation rate = 44,000/10

The depreciation rate = $ 4,400.

To determine depreciation % rate

Depreciation % rate = (The depreciation rate / depreciation base) × 100

Depreciation % rate = (4,400 / 44,000) × 100

Depreciation % rate = 10 %

But since Missouri Co. uses double declining balance method of depreciation, the correct depreciation % rate is 10 × 2 = 20%

Determining the depreciation expense for year 2

Year 2 depreciation expense is computed as follows:

(Acquisition cost - year 1 depreciation expense) × Depreciation % rate

Depreciation expense for year 2 is computed as:

Acquisition cost × Depreciation % rate = 49,000 × 20%

Year 1 depreciation expense = $9,800.

Therefore year 2 depreciation expense = (49,000 - 9,800.) × 20%

Therefore year 2 depreciation expense = $ 7,800.

8 0

4 years ago

Select the correct statement regarding managerial and financial accounting. Multiple Choice Timeliness is more important in fina

rusak2 [61]

Answer:

Financial accounting is more highly regulated than managerial accounting.

Explanation:

Financial accounting is highly regulated and follows laid down principles that must be followed. International Financial Reporting Standard (IFRS) and Generally Accepted Accounting Principles (GAAP) are two examples of regulatory guidelines for financial accounting.

On the other hand managerial accounting is flexible and tailored to the manager's needs.

It must not follow the strict guidelines of financial accounting. This is because managerial accounting is used internally by a company and is not subject to public scrutiny.

5 0

4 years ago

Read 2 more answers

If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that e

ale4655 [162]

Answer:

A)equity theory.

Explanation:

From the question, we were informed that, if I'm a manager who made sure that rewards were distributed to my employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, In this case, I would be using equity theory. Equity theory, which is also known as Adams equity theory explained that a fair balance should exist between the input of an employee and the output, the input in this sense could be employee's skills, hardwork, the output as well could be the salaries, recognition given to employees. It should be noted that Equity theory allows to know how fair is the distribution of resources to relational partners.

6 0

3 years ago

Kingbird Corporation (a calendar year C corporation) reports the following income and expenses this year: Income from operations

Artyom0805 [142]

Answer:

$7,500

Explanation:

Taxable income:

= Income from operations + Dividends received - Expenses from operations

= $200,000 + $15,000 - 140,000

= $75,000

Deductions is allowed only to the maximum extent of 10% of the taxable income of the corporation.

Therefore,

Kingbird's charitable contribution deduction:

= 10% of Taxable income

= 0.1 × $75,000

= $7,500

8 0

4 years ago

Suppose the price of tomatoes falls, ceteris paribus. Describe the impact the substitution effect and the real income effect wou

mamaluj [8]

Answer:

Ceteris paribus assumption: Demand curves relate the prices and quantities demanded assuming no other factors change

Explanation:

Ceteris paribus is a Latin phrase meaning “other things being equal”. If all else is not held equal, then the laws of supply and demand will not necessarily hold.

Demand is the amount of some product a consumer is willing and able to purchase at each price.

IMPACT THE SUBSTITUTION EFFECT AND THE REAL INCOME

A substitute is a good or service that can be used in place of another good or service. A lower price for a substitute decreases demand for the other product and increases the quantity demanded for tomatoes

A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.

3 0

3 years ago