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olga2289 [7]
3 years ago
9

A company uses the declining-balance method of calculating depreciation expense.On January 1, the company buys machinery for $75

0,000. The machinery has a salvage value of $100,000 and an estimated service life of 10 years.What is the book value in Year 3?
Business
1 answer:
elixir [45]3 years ago
5 0

Answer:

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

Explanation:

Straight line rate= 100 % ÷ Useful Life = 100 ÷ 10= 10 %

Double Declining rate = 2 * Straight Line rate= 2 * 10= 20 %

Depreciation expense= Double  declining balance rate * Beginning period book value

Depreciation expense for the first year =    20 % $ 750,000= $ 150,000

Book value for the first year = $ 750,000 - $ 150,000= $ 600,000

Depreciation expense for the 2nd year =    20 % $ 600,000= $ 120,000

Book value for the 2nd year = $ 750,000 - $ 270,000= $ 480,000

Depreciation expense for the 3rd year =    20 % $ 480,000= $ 96,000

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

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Answer:

The answer is: Enabling shipment of customer orders to be initiated as soon as the orders are received.

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Imagine you want to buy a set of chairs and the salesman takes your order at 9 AM. If the salesman uses a batch sales ordering process, he might have to wait until midday to place your sales order along with all the other sales he did in the morning. If he was using an online sales order processing system, your sale would have been processed immediately without any other delay. That obviously saves time.    

4 0
3 years ago
Rice company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. compute the break-e
larisa [96]
Selling price = p = 520
variable cost per unit = vc = 286
fixed cost = fc = 163,800.
unit sold = x

520 * x = 286 * x + 163,800
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x = 163,800 / 234 = 700 units to reach break even point.
unit contribution margin = p - vc = 520 - 286 = 234 per unit.

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2 years ago
Fenton Manufacturing Company at June 30: Cash in bank account $ 6,455 Inventory of postage stamps $ 74 Money market fund balance
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Answer:

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Explanation:

The computation of the cash and cash equivalent is shown below:

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All other information which is given is not relevant. Hence, ignored it

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