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nata0808 [166]
3 years ago
11

A truck costs $ 303 comma 000 and is expected to be driven 114 comma 000 miles during its fiveminusyear life. Residual value is

expected to be zero. If the truck is driven 34 comma 000 miles during the first​ year, how much depreciation should the business record under the unitsminusofminusproduction ​method? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)
Business
1 answer:
Anika [276]3 years ago
7 0

Answer:

$90,900

Explanation:

Cost of truck = $303,000

Expected millage = 114,000 miles

Residual value = 0

Millage cover in first year = 34,000 miles

Depreciation is the systematic allocation of cost to an asset based on usage.

The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year

=  (34,000/114,000) × 303,000

= 0.30 × 303,000 (intermediate calculations rounded to two decimal​ places)

= $90,900 (to the nearest dollar)

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Answer:

The number of new clients will increase by

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Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

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MariettaO [177]

Answer:

a. $180

Explanation:

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From the question it is evident that the write offs during the period were $180 and hence the expense recorded in the Income statement as bad debt expense would be $180 because they are unrecoverable for the current period.

Hope this helps.

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The operating budget also includes overhead and administration costs that are directly related to manufacturing goods and providing services. However, capital expenditures and long-term loans will not be included in the operating budget. Budgets for sales, production process or manufacturing, labor, overhead, and administration are a few examples of frequently utilized operating budgets.

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