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Mrac [35]
4 years ago
7

A company purchased factory equipment on June 1, 2021, for $160,000. It is estimated that the equipment will have a $10,000 salv

age value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is
Business
1 answer:
likoan [24]4 years ago
7 0

Answer:

$8,750

Explanation:

The computation of the depreciation expense under the straight-line method  is shown below:

= (Original cost - salvage value) ÷ (useful life)

= ($160,000 - $10,000) ÷ (10 years)

= ($150,000) ÷ (10 years)  

= $15,000

In this method, the depreciation is same for all the remaining useful life\

Now for the 7 months, the depreciation expense would be

= $15,000 × 7 months÷ 12 months

= $8,750

The 7 months is computed from July 1 to December 31

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Which of the following is a dimension of national culture?
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(B) Uncertainty avoidance.

Explanation:

Uncertainty avoidance is one of the dimensions of national culture.

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People in cultures with high uncertainty avoidance try to reduce the occurrence by implementing rules and regulations while those in cultures of low uncertainty avoidance feel more comfortable and have no need to implement many rules.

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Bennett Co. has a potential new project that is expected to generate annual revenues of $253,100, with variable costs of $140,00
Vlad [161]

Answer:

Hence, the annual operating cash flow is:  $44860

Explanation:

                                 Year 0    Year 1

Initital investment    

Inflows                                $253,100  

variable costs                       ($140,000)

fixed cost                             (53800)

Depreciton                         ($23,200)

Interest expense                 ($19,500)

Net cash inflows                   $16600 

Tax at 40%                           ($6640)

Net Cashinflows after tax      $9960

Add Depreciation                   $23,200  

Interest net of tax                   $11.700

Operating cashflows              $44860

Hence, the annual operating cash flow is: $44860

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4 years ago
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Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materia
Wewaii [24]

Answer:

<u>Production budget for October and November</u>

                                                                October            November

                                                                 cushions             cushions

Budgeted Sales                                         13,000                15,000

Add Budgeted Closing Inventory              3,000                  3,600

Total Production needed                          16,000                18,600

Less Budgeted Opening Inventory          (2,600)                (3,000)

Production Budget                                    13,400                15,600

Explanation:

A Production Budget shows the quantities of finished goods that must be produced to meet <em>expected sales</em> <u>plus</u> any <em>increase in inventory</em> levels that might be required.

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