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Marianna [84]
3 years ago
13

A company purchased a computer system at a cost of $34,000. The estimated useful life is 8 years, and the estimated residual val

ue is $9,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year
Business
1 answer:
Iteru [2.4K]3 years ago
3 0

Answer:

Year 2= $4,687.5

Explanation:

Giving the following information:

Purchase price= $34,000

Useful life= 8 years

Salvage value= $9,000

<u>To calculate the depreciation expense under the double-declining-balance, we need to use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= [(34,000 - 9,000)/8]*2= $6,250

Year 2= [(25,000 - 6,250)/8]*2= $4,687.5

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Steven's Auto is trying to decide whether to lease or buy some new equipment costing $23,000 that has a life of three years, aft
jolli1 [7]

Answer:

$1,241

Explanation:

For computing the net advantage to leasing first we have to determine the total cash flow from leasing and total cash flow from buying which is shown below:

For leasing:

Year       Lease payment      PVF at 5.8%    Present value

1              $6,500                   0.9452             $6,144

2             $6,500                   0.8934             $5,807

3              $6,500                  0.8444              $5,489

Total outflow                                                   $17,440

For buy:

Year      Outflow or inflow     PVF at 5.8%    Present value

0            ($23,000)                    1                      ($23,000)

1              $1,610                       0.9452             $1,522

2             $1,610                        0.8934             $1,438

3              $1,610                       0.8444              $1,359

Total outflow                                                   $18,681

Now the net advantage to leasing is

= Buy outflow - leasing outflow

= $18,681 - $17,440

= $1,241

7 0
3 years ago
There are a number of toothpastes marketed under the Crest brand, including Cavity Protection Crest, Pro-Health Sensitive Shield
SashulF [63]

Answer:

B. product line

Explanation:

The large variety of toothpastes under the Crest brand is an example of a product line

7 0
3 years ago
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa
valina [46]

Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

                                                                     $

Operating cash flow                               $58,500

Working capital recouped                     4,950

Scrap value                                            6,090    

Tax payable (40%*58500)                      <u>(23400 )</u>

  Net   Cash flow                            <u>      46,140 </u>

3 0
3 years ago
Which of the following provides the best explanation for how consumer credit can exacerbate inequality?
Flura [38]

Answer:

people with lower wealth and income may have less access to credit and pay higher interest rates when they are approved

Explanation:

8 0
2 years ago
Six-membered cyclic hemiacetals and five-membered cyclic hemiacetals are called, respectively, ________. six-membered cyclic hem
cestrela7 [59]

Six-membered cyclic hemiacetals and five-membered cyclic hemiacetals are called, respectively, <u>none of the above</u>.

<u>Explanation:</u>

Pyranoses and furanoses are the terms used to mention the six-membered cyclic hemiacetals and five-membered cyclic hemiacetals respectively.

Pyranose is a saccharide having a chemical structure that includes a six-membered ring. One oxygen atom and five carbon atoms are present in the six-membered ring. The external part of the ring may have some carbons.

The carbohydrates having a chemical structure with a five-membered ring system is known as furanoses. One oxygen atom and four carbon atoms and are present in the five-membered ring system. There is no chance of double bonds in the furanose ring.

5 0
3 years ago
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