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vitfil [10]
3 years ago
11

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost i

s $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Compute the total machine maintenance cost for last year. a.$550,000 b.$420,000 c.$20,000 d.$570,000

Business
1 answer:
NISA [10]3 years ago
5 0

Answer:

d.$570,000

Explanation:

Please see attachment

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(a)  Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million i
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Here, we are going to prepare the balance sheet of Bank of Marienfield using the information given in the question..

  • Formula for Total liabilities is <em>Capital + Checkable deposit + Loan from bank</em>

<u>Given Information</u>

Capital = $150 Million

Checkable deposit = $100 Million

Loan from bank= $50 Million

Total liabilities = $150 Million + $100 Million + $50 Million

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<u>Additional given Information</u>

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Investment in Treasury bonds = $20 Million

Required reserve = Checkable deposit * Required reserve rate

Required reserve = $100 Million * 10%

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Excess reserve = Total liabilities - (Commercial loan + Investment in shares + Investment in Treasury bonds + Required reserve)

Excess reserve = $300 Million - ($150 Million + $120 Million + $20 Million + $10 Million)

Excess reserve = $300 Million - $300 Million

Excess reserve = $0 Million

                                  Balance sheet of Bank of Marienfield.

Assets                           Amount        Liability                        Amount

Required reserves       $10 million     Bank capital              $150 million

Excess Reserve            $0                  Checkable deposit  $100 million

Commercial loan          $150 million   Loan from bank        $50 million

Investment in shares    $120 million

Invest. Treasury bond  <u>$20 million </u>                                      <u>                       </u>

Total                              <u>$300 million</u>  Total                          <u>$300 million</u>  

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