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klemol [59]
2 years ago
8

A truck acquired at a cost of $80,000 has an estimated residual value of $8,000, has an estimated useful life of 200,000 miles,

and was driven 18,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. (a) The depreciable cost (b) The depreciation rate (c) The units-of-activity depreciation for the year per mile
Business
1 answer:
laila [671]2 years ago
6 0

Answer:

a. The depreciable cost is $72000.

b. The depreciation rate is $0.36 per mile.

c. The depreciation expense for the year is $6480.

Explanation:

a.

The depreciable cost is the cost that is eligible for depreciation. It is calculated by deducting the residual value from the cost of the asset.

Depreciable cost = Cost - residual value

Depreciable cost = 80000 - 8000 = $72000

b.

The depreciation rate can be calculated by dividing the depreciable cost by the total estimated useful life of the asset.

The depreciable rate = 72000 / 200000 = $0.36 per mile driven

c.

The units of activity depreciation for the year is,

Depreciation expense = 0.36 * 18000 = $6480

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Formaggio Vecchio announced its regular quarterly cash dividend of $0.20 per share. Currently there are one million shares outst
aleksandr82 [10.1K]

Answer:

A.On Ex-dividend date: November 20, 2006

B.1%

C.$0.19

D. $1.82

Explanation:

1.On Ex-dividend date: November 20, 2006

will the stock price change to reflect the value of the dividend

b. Calculation for Formaggio’s dividend yield

Using this formula

Dividend yield = dividend/share price

Let plug in the formula

= .20/20 = 1%

c. Calculation of how much the stock price is likely to fall

0.20*(1 – 15%) = P*(1 – 10%)

Solve for P = $0.19

d. Calculation of How much is the stock price likely to fall Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend.

$1,000,000 + (1,000,000 * 10%)

$1,000,00+$100,000

= 1,100,000 total shares

Hence,

$20,000,000 / 1,100,000 = $18.18 per share

$20 – 18.18 = $1.82 fall

5 0
3 years ago
If the borrower has a previous foreclosure, can he use FHA to purchase a new home?
snow_tiger [21]

Answer:

Yes he can use FHA

Explanation:

Because FHA Loans are the most forgiving of foreclosures. To qualify for an FHA mortgage loan, you must wait at least three years after the foreclosure. The three year clock starts ticking from the time that the foreclosure case has ended, usually from the date that you prior home was sold in the foreclosure preceeding. If the foreclosure also involved an FHA loan, the three year waiting periods starts from the date that FHA paid the prior lender on its claim

6 0
3 years ago
In July, Lane Co. sells merchandise to Avery Co. on account. In August, Avery pays the balance in full. The entry that Lane will
grandymaker [24]

The entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

<h3>What is Accounts Receivable?</h3>

Accounts Receivable can be defined as the amount a company is expected to receive from their clients or customers for the goods and service they rendered to their clients.

Based on the information given the appropriate journal entry to record the transactions is:

Debit Cash

Credit Account receivable

(To record the receipt of cash)

Inconclusion the entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

Learn more about account receivable here:brainly.com/question/24848903

7 0
1 year ago
John works part-time for a moving company and earns a total of $116 each weekend. A friend invites him to go on a cruise next we
adell [148]

Answer: $116

Explanation: Opportunity cost refers to the loss of profit by an individual or a firm when one chooses to go for best alternative instead of the second best alternative.

In the given case, John has two alternatives and if he chooses to go on the trip it would cost him the loss of $116 salary that he receives.

Thus the opportunity cost of going on the trip would be $116.

5 0
2 years ago
An individual who works at a bookstore routinely takes home ballpoint pens and post-it notes, uses the copy machine to make pers
Papessa [141]

This attitude is called cash register honesty.

The book store worker knows very well that ball point pens, post-its, copies on the copier machine and long-distance phone calls are office resources and should, in principle, be used only for office purposes.

He is also aware that the he is responsible for his own needs - be it post-its or long-distance phone calls.

By taking some small supplies home or using the office equipment for personal use (e.g. making personal copies or making personal long-distance phone calls), he increases the cost to the company.

Yet, he continues to indulge in the activities described in the question, because he believes, at a personal level, that he can get away with it . (It's okay with him at a personal level.)

However, since stealing from the cash register is not ok with him on a personal level, he doesn't do it even though he knows he can get away with it. This attitude is called cash register honesty.

7 0
3 years ago
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