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Georgia [21]
4 years ago
11

On January 1, a machine with a useful life of five years and a residual value of $5,000 was purchased for $25,000. What is the d

epreciation expense for year 2 under straight-line depreciation?
a. $5,000
b. $15,000
c. $4,000
d. $12,000
Business
1 answer:
disa [49]4 years ago
6 0

Answer:

c. $4,000

Explanation:

Depreciation expense is the appropriate portion of a company's fixed asset's cost that is being used up during accounting period. Under straight-line method, depreciation expense is calculated by formula:

Straight-Line Depreciation Expense = (Cost − Residual Value) /Useful Life of the Asset

For year 2, depreciation expense = ($25,000-$5,000)/5 = $4,000

Noted:

Depreciation Expense is different from Accumulated depreciation.  Accumulated depreciation is the total amount of depreciation expense for an fixed asset that is recorded on the balance sheet. In this situation, the Accumulated depreciation after 2 years is:

Depreciation expense in year 1 + Depreciation expense in year 2 = $8,000

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A project is expected to generate annual revenues of $129,300, with variable costs of $72,400, and fixed costs of $18,900. The a
Talja [164]

Answer:

$42,950

Explanation:

Data and Calculations

Revenue                                            $129,300

Less variable costs                          ($72,400)

Less  fixed costs                               ($18,900)

add depreciation                                $4,950

Operating Cash flow                         $42,950

Thus

The annual operating cash flow $42,950.

4 0
3 years ago
Goodlife inc. is a luxury condominium-building company that is based in the country of el verdad. it sells highly priced homes t
Elena-2011 [213]

Transnational Strategy

Venture to achieve low-cost, mark up products across markets and to foster a flow of skills between different subsidiaries. High cost pressures, high local responsiveness pressures. Actually there are a four kinds of strategy; Global Standardization Strategy, Transnational Strategy, International Strategy, Localization Strategy. 

3 0
3 years ago
The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for
zhuklara [117]

Answer:

$6.00 per machine-hour

Explanation:

Total estimated manufacturing overhead = $300,000

Estimated machine hours = 50,000 hours

Predetermined overhead rate = Total estimated manufacturing overhead /  Estimated machine hours

Predetermined overhead rate = $300,000 / 50,000 machine hours

Predetermined overhead rate = $6 per machine hour

So, The correct asnwer is $6.00 per machine-hour.

8 0
3 years ago
astrid is starting a new job that involves a lot a driving, and she wants to have a comfortable new car with the latest gadgets.
Mama L [17]

Answer:

She better lease a car for work.

Explanation:

The most significant distinction between a lease and a rental agreement is the length of time they are valid for. In most cases, a rental agreement is for a short length of time (typically 30 days), but a lease contract is for a longer amount of time (generally 12 months, although 6 and 18-month leases are also frequent). So it's better to lease a car because you can use it longer.

4 0
2 years ago
Suppose the japanese yen exchange rate is ¥73.47 = $1, and the british pound exchange rate is £1 = $1.53.
sineoko [7]

Answer: Cross-rate can be found by using the given formula ,

¥73.47 = $1\\£1 = $1.53

So,

£1 = $1.53 $1 = \frac{£1}{1.53}  $1= £0.6536

Substituting this into the exchange rate for Yen and dollars, we get

¥73.47 = $1 ¥73.47 = £0.6536

¥73.47/0.6536 = £1 ¥112.4082=£1

Cross-rate in terms of Yen per Pound is 112.41

b. If cross-rate is ¥115=£1, this means that Yen is quoted high relative to pound. So, the arbitrage profit per dollar will be,

Suppose we take a a loan for $1 and buy £0.6536. Then we use the pounds to purchase yen at the cross-rate, so we have

£0.6536 (¥115/£1) = ¥75.164

Now, we replay the loan in dollars by exchanging Yen back to dollars. The cost to repay will be:

¥75.164($1/¥73.47) = $1.02305

Your arbitrage profit is $0.02305 per $1 used.

5 0
3 years ago
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