1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
7

Mellow Co. depreciates a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning o

f the fifth year, it is determined that the asset will last another four years. What amount should Mellow report as depreciation expense for year five?
Business
1 answer:
vaieri [72.5K]3 years ago
6 0

Answer:

$600

Explanation:

Using the straight-line depreciation method:

Cost amount $12,000:

useful life five years

depreciation per year: =$ 12000/ 5

       =$ 2,400.00

Book value at the beginning of year five:

=cost price minus four years of depreciation

=$12,000-($2400 x 4)= $ 12,000- $ 9,600

=$2, 400.00

Another four years of useful life:

Depreciation = Book value /4

   =$2400/4

   = $600

   

You might be interested in
What would be the best time for a person to buy a franchise?
VashaNatasha [74]
When your financially comfortable
3 0
3 years ago
Read 2 more answers
Compare the yield to maturity and the current yield. How do you explain this​ relationship?  ​(Select the best​ response.)A.If a
mamaluj [8]

Answer:

A - If a bond sells at a​ discount, the yield to maturity is greater than the current yield

Explanation:

Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.  

“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).

According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.  

7 0
3 years ago
2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few
Firlakuza [10]

Answer:

Answer is explained in the explanation section below.

Explanation:

Data Given:

Material Cost Per Trailer = $500

Material Cost plus Profit Per Trailer (15%)  = $500 + 75 = $575

Selling Price = $1000

Labor Cost Remaining Per Trailer = $425

Formula to Calculate the number of Trailers:

X = X1 (N^{S})

Where,

N = number of Trailers

S = Slope Parameter

X = $425

X1 = $700

So, First we need to find the slope parameter, in order to calculate the number of trailers to be built.

S = \frac{log \alpha }{log 2}

where, α = 0.85 rate of improvement.

Plugging in the values into the formula, we get:

S = \frac{log (0.85) }{log 2}

S = -0.234

Now, we can easily find the number of trailers.

X = X1 (N^{S})

Plugging in the values,

425 = 700 x (N^{-0.234})

Solving For N, we get:

N = 8.4 Trailers

N = 9 Trailers.

Hence, 9 Trailers must be built in order to realize this rate of profit.

8 0
2 years ago
Brick Oven Corporation made the following expenditures during the first month of operations: Attorneys' fees to organize the cor
damaskus [11]

Answer:

The answer is given below;

Explanation:

Legal Expenses  Dr.$9,000

Patent (40,000+2,500) Dr.$42,500

Advertising Expense    Dr.$80,000        

Cash                             Cr.$131,500  

Please note that legal and other fees for transfer of patent is capitalized in patent cost.

The compound entry is made to simplify the T-Account of cash as the second impact of every debit entry is cash.          

5 0
3 years ago
Calculate the cost of goods sold using the following information: Direct materials $ 298,500 Direct labor 132,000 Factory overhe
Virty [35]

Answer:

COGS= $680500

Explanation:

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Cost of manufactured period= 118,500+ 298,500 + 132,000  + 264,000 - 125,900 =$687,100

COGS= 232,100 + 687,100 - 238,700=$680500

5 0
2 years ago
Read 2 more answers
Other questions:
  • Which best explains how the invention of money affected the barter system?
    5·2 answers
  • when choosing over the next best alternative due to trade offs faced, what is given up is called the​
    15·1 answer
  • operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the m
    12·2 answers
  • You and two partners start a company. However, your partners play no role in running the company. You spend all your time managi
    14·1 answer
  • The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 14,000 A
    9·1 answer
  • Sound Financials Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. I
    11·1 answer
  • Which of the following is an example of a non-profit organization?
    13·1 answer
  • What is erikson's term for the period during which toddlers (aged 18 months to 3 years) develop independence and autonomy if the
    5·1 answer
  • Good salespeople:_______. A. Help customers buy.B. Are never the only link between the firm and its customers.C. Are not part of
    14·1 answer
  • If I have an F and have nothing to do. what should I do
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!