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Vadim26 [7]
3 years ago
13

A company purchased a tractor on January 1, 2021, for $65,000. The tractor's useful life is estimated to be 30,000 miles with an

expected residual value of $5,000. If the company used the tractor 5,000 miles in 2021 and 3,000 miles in 2022, what is the balance for accumulated depreciation at the end of 2022 using the activity-based method
Business
1 answer:
Dvinal [7]3 years ago
7 0

Answer:

Accumulated depreciation at the end of year 2022 : $16,000

Explanation:

Activity based depreciation is whereby an asset is depreciated based on the asset’s activity such as the number of hours worked or the number of units produced, during a particular period of time. Activity based depreciation per year is calculated as:

[(Cost - Salvage value) x activity performed during the period] / Total estimated life activity of the asset

In 2021, the asset had an activity of 5000 miles. Depreciation for this year = [(65000 - 5000) x 5000] / 30,000

= $10,000

In 2022, the asset had an activity of 3000 miles. Depreciation for this year = [(65000 - 5000) x 3000] / 30000

= $6000

Accumulated depreciation at the end of year 22 : $10,000 + $6,000 = $16,000

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The United Kingdom started regulating the size of grocery stores in the early​ 1990s, and​ today, the average size of a typical
Svetradugi [14.3K]

Answer:

C. The​ long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

Explanation:

The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

Since the size of the grocery stores decreases, the average costs decreases. So, The​ long-run average cost of production is lower when there are diseconomics of scale.

Hope this helps.

0 0
3 years ago
Kelly Company issued $100,000 of 5%, 10-year bonds at 102 to a single investor. Each of the $1,000 bonds was convertible into 10
Angelina_Jolie [31]

Answer:

The amount credited to common stock upon conversion of the bonds is $101000

Explanation:

When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.

However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.

The amount credited to common stock=$102000-$1000=$101000

This can be shown with entries below:

Dr Bond payable     $100000

Dr Bond premium    $1000

Cr Common stock                      $101000

3 0
3 years ago
Sheaves, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000.
Dominik [7]

Answer:

$21,767.50

Explanation:

<u>Computation table:</u>

<u>Particular                      Amount</u>

Sales                             $50,000

Less: Costs                   $23,000

<u>Less: Depreciation       $2,250</u>

<u>EBIT                              $24,750</u>

<u>Less: Interest               $2,000. </u>

<u>EBT                              $22,750</u>

<u>Less: Tax (23%)           $5,232.50 </u>

<u>Net Income              $17,517.50</u>

$24,750 + 2,250 -5,232.50

$21,767.50

6 0
3 years ago
_____ power is a function of the amount of knowledge one possesses relative to the rest of the members of a group
shutvik [7]
Expert power is a function of the amount of knowledge one possesses relative to the rest of the members of a group.
7 0
3 years ago
Swifty Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each produc
Katen [24]

Answer:

$10.60 per direct labor hour

Explanation:

Calculation for the overhead rate

First step is to calculate the Direct labor hours for car wheels using this formula

Direct labor hours for car wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for car wheels= 40,000 * 1

Direct labor hours for car wheels= 40,000 hours

Second step is to calculate Direct labor hours for Truck wheels using this formula

Direct labor hours for Truck wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for Truck wheels= 10,000 * 3

Direct labor hours for Truck wheels= 30,000 hours

Third step is to calculate the Total direct labor hours

Total direct labor hours = 40,000 + 30,000

Total direct labor hours=70,000 hours

Now let calculate the Overhead rate using this formula

Overhead rate = Total estimated overhead costs / Total direct labor hours

Overhead rate= $742,000 / 70,000 hours

Overhead rate= $10.60 per direct labor hour

Therefore Overhead rate is $10.60 per direct labor hour

8 0
3 years ago
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