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stiv31 [10]
3 years ago
10

Schager Company purchased a computer system at a cost of $60,000 on 1/1/2019. The estimated useful life is 8 years, and the esti

mated residual value is $5,000. Assuming the company will use the double-declining-balance method, what is the depreciation expense for the second year (2020)
Business
1 answer:
MaRussiya [10]3 years ago
3 0

Answer:

$11,250

Explanation:

The computation of depreciation expense for the second year is given below:-

Double declining rate = 1 ÷ 8 × 2

= 25%

Here, for computing the depreciation for 2nd year we need to first calculate the 1st year of depreciation.

Depreciation for the 1st year = Purchase cost × Double declining rate

= $60,000 × 25%

= $15,000

Depreciation for the 2nd year = (Purchase cost - Depreciation for the 1st year) × Double declining rate

= ($60,000 - $15,000) × 25%

= $45,000 × 25%

= $11,250

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According to the text, there are four different aspects of a decision that a business should evaluate in order to___ maximize pr
inna [77]

Answer: Legal, public relation, safety risk, financial.

Explanation:

The above are different aspects of a decision in order to maximize profit and be a good corporate citizen.

Financial decision taking with respect to capital structure.

Legal- legal rights and responsibilities.

Safety risk assessment and mitigation of safety risk.

Public relation communication that are strategic that builds mutually beneficial relationships.

3 0
3 years ago
Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Opera
elena-s [515]

Answer:

The Net Cash Flow is $9,300,000.

Explanation:

A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:

                             Ruston Company

                       Statement of Cash Flows

                              For the Year 2020

<u>Details                                                                    $'000    </u>

Net Income                                                            9,100

Adjustments from Operating Activities            <u>    1,100  </u>

Net Cash Flow from Operating Activities         10,200

Net Cash Flow from Investing Activities           (4,300)

Net Cash Flow from Financing Activities of   <u>    3,400  </u>

Net Cash Flow                                                <u>     9,300  </u>

Since the amount is in thousands, that implies that  the Net Cash Flow is $9,300,000.

7 0
3 years ago
Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?
arlik [135]
The reason why the demand is extremely time-and-place dependent would be: <span>Because customers must be present for service to be delivered
</span>customers must be present for services businesses because Unlike merchandising business, service business focused on the enhance Customer's experience rather than focus on selling the product.
8 0
3 years ago
Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%
kozerog [31]

Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

Explanation:

The 72 rule stipulates that the number of years it would take an investment to achieve accumulate a certain amount- future value, can be computed by dividing 72 by the interest rate earns by the investment

N, the number of years=72/9.6

                                      =7.5 years

Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

7 0
3 years ago
Read 2 more answers
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc
ziro4ka [17]

Answer:

Total= 45,684 feet

Explanation:

Giving the following information:

Production budget:

February= 10,993

March= 8,559

Each chair produced uses 5 board feet of wood.

Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

Direct material budget:

Production= 10,993*5= 54,965

Desired ending inventroy= (8,559*5)*0.2= 1,712

Beginning inventory= (10,993*5)*0.2= (10,993)

Total= 45,684 feet

6 0
3 years ago
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