Answer:
$7,326
Explanation:
Double Decline Balance = 2 x SLDP x SLDBV
where,
SLDP = Straight Line Depreciation Percentage
= 100 ÷ useful life
= 100 ÷ 20
= 5 %
and
SLDBV = Straight Line Percentage Book Value
Year 1
Double Decline Balance = 2 x 5% x $81,400
= $8,140
Year 2
Double Decline Balance = 2 x 5% x ($81,400 - $8,140)
= $7,326
Therefore
The machine's second-year depreciation using the double-declining balance method is $7,326.
Answer: If the material is reworked and sold, Hodge Inc. has a financial disadvantage of (- 4500).
Let's see why:
1) If we sell the material at its disposal value: We have a cost of $ 74600 and the income from sale would be $ 57400 =
57400 - 74600 = (-17200). We have a loss of $17200.
2) If we rework the material we will have an original cost of $ 74600, an additional cost for reworking of $ 1500 and the income from its sale would be $ 54400 =
54400 - (74600 + 1500) = (-21700) We have a loss of $ 21700.
Then comparing the 2 situations =
(-21700) - (-17200) = -4500. There is a financial disadvantage of $4,500 if the material is reworked instead of selling it as scrap.
Answer:
The correct answer to the following question will be Option C.
Explanation:
- Constant cost industries seem to be a sector wherein the proportion of units produced as well as manufacturing costs every unit maintains the very same irrespective including its amount of manufacturing or rise in population. Which doesn't use input data in the appropriate amount to influence the rates of that same components by a shift in industry revenue.
- This doesn't even use inputs in such amounts that perhaps the costs of that same inputs will be influenced by a change in business production.
The other choices are not linked to an industry of this kind. Therefore the clarification above is correct.
Answer:
an overall low-cost provider strategy.
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.
This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.
Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.
Answer: Gwen should report a $3,000 long-term capital gain in her income tax return.
In this question the price paid by Gwen’s mother for the shares is irrelevant because of her death.
The stock’s fair market value ($20) when Gwen inherited the shares (21st October 2015) is Gwen stepped up value.
Gwen’s gain from selling the shares is:
Gwen inherited the shares on (21st October 2015) and held the shares until (3rd july 2017), so she held the shares for more than one year after inheriting it. So, she will report a long-term capital gain on her income tax return.
