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netineya [11]
3 years ago
13

Hunt Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight costs, $1,100; inst

allation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment, $500; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life. Compute the acquisition cost of the equipment. Acquisition cost of the equipment $ If the double-declining-balance method of depreciation was used, the constant percentage applied to a declining book value would be
Business
1 answer:
saul85 [17]3 years ago
8 0

Answer:

Acquisition cost of the Equipment = $94,000

Double declining depreciation rate = 25%

Explanation:

a. The computation of the acquisition cost of the equipment is shown below:-

Acquisition cost of the Equipment = Invoice cost + Freight costs + Installation wiring and foundation + Material and labor costs used in testing

= $90,000 + $1,100 + $2,200 + $700

= $94,000

b. The computation of double declining depreciation rate is  here below:-

Double declining depreciation rate = 1 ÷ Depreciation life × Times

= 1 ÷ 8 × 2

= 0.125 × 2

= 0.25

or

= 25%

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Katherine, Alliah, and Paulina form a partnership. Katherine contributes $150,000. Alliah contributes $150,000, and Paulina cont
ryzh [129]

Answer:

$33,750

Explanation:

The computation of the amount of income which is credited to Katherine's capital account is shown below:

= (Katherine contribution ÷ total contribution) × partnership income

= ($150,000 ÷ $400,000) × $90,000

= $33,750

The total contribution equals to

= Katherine contribution + Alliah contribution + Paulina contribution

= $150,000 + $150,000 + $100,000

= $400,000

8 0
4 years ago
Sorter Company purchased equipment for $330,000 on January 2, 2019. The equipment has an estimated service life of 8 years and a
Makovka662 [10]

Answer:

1. Depreciation expense for 2019(Straight-line)= (Cost of the assets - Salvage value) / life of the assets

= ($330000 - $33000)/8

= $37,125

2. Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8 = 36

Depreciation Expense for 2019(Sum-of-the-years'-digits method)

= ($330000 - $33000)*8/36

= $66,000

3. Double-declining-balance depreciation rate = (100/8 years)*2 = 25%

Depreciation Expense for 2019 = 330000*25% = $82,500

5 0
3 years ago
Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital. The firm now has 1,000,000 shares of co
mixer [17]

Options:

A. $18,500,000

B. $19,000,000

C. $19,500,000

D. $20,000,000

E. $20,500,000

Answer: C. $19,500,000.

Explanation:MVA(MARKET VALUE ADDED) is a measurement that is used to describe the difference between the market value to a company and the capital contributed by both the shareholders and the bondholders.

WHEN THE MARKET VALUE ADDED IS HIGH IT SIGNIFIES THAT THE COMPANY IS GENERATING ENOUGH MONEY TO COVER THE COST OF CAPITAL.

MVA= (market value-stockholders contribution).

Market value =$39.5*1000000shares

= $39,500,000

MVA= $39,500,000-$20,000000

MVA=$19,500,000.

8 0
3 years ago
In a(n) __________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize thei
Alina [70]

In an independent marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.

<h3>What is marketing channel ?</h3>

A marketing channel can be described as the channel that consist people, organizations, and activities necessary to transfer the ownership of goods from the point of production to consumption.

It shoul;d be noted that this can be seen as the way products get to the end-user, the consumer; and is also known as a distribution channel.

Therefore, option B is correct.

Learn more about marketing at:

brainly.com/question/14457086

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6 0
1 year ago
JTL has 148,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurcha
MrRissso [65]

Answer:

A tender offer.

Explanation:

This is simple explained to be the offer put to place to execute a work or even services for a said/given price. These offers are typically said to be done publicly; shareholders in some cases a been put to place to sell their shares for a specified price and within a particular window of time. Target sales orders which are been tabled/offered are been usually placed at certain premium value which are effective in market price and is often contingent upon a minimum or a maximum number of shares sold. In many other cases, tender are seen to be in security forms or other non-cash alternatives are offered in exchange for shares.

3 0
3 years ago
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