1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Aliun [14]

To create market stability.

6 0
3 years ago
Understanding a target customer base allows a company to
Sever21 [200]
B is the answer.

Hope this helps.
6 0
3 years ago
Read 2 more answers
The following data have been provided by Letze Corporation from its activity-based costing accounting system: Factory supervisio
Alex Ar [27]

Answer:

Letze Corporation

Overhead allocation to Batch Set-Up:

Factory supervision = 55% of $460,000 = $253,000

Indirect factory labor = 60% of $220,000     132,000

Total overhead assigned                             $385,000

Explanation:

a) Data and Calculations:

Factory supervision $ 460,000

Indirect factory labor $ 220,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

                                 Batch Set-Up     Expediting        Other     Total

Factory supervision      55%                    35%                10%      100%

Indirect factory labor    60%                   20%                20%      100%

b) Letze Corporation can use Activity-Based Costing as a system of cost accumulation and allocation based on activity cost pools so that overhead costs are assigned based on the level of activity which each cost pool generates.  It tries to tie costs to the activities that generate them.

3 0
3 years ago
A conversion strategy whereby an organization uses the new system with select users/parts of the organization until issues are r
hoa [83]

Answer:

A) Pilot strategy

Explanation:

Under a pilot strategy, before a new system is fully implemented, it is first subjected to testing under a given situation by using it in selective parts of the organization , to assess it's compatibility with the situation or if the system requires necessary changes.

This could also be a kind of experimentation to evaluate the feasibility of a system before deciding upon it's final implementation.

If the system under consideration matches the desired results, the organization proceeds with it's full implementation in the entire organization.

If not, necessary changes need to be incorporated in the system.

5 0
3 years ago
Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100
mestny [16]

Answer:

A. 90

Explanation:

nominal GDP = 50*20 + 100*8 = 1800

real GDP = 50*10 + 100*15 = 2000

GDP deflator = (nominal GDP/ real GDP)*100 = (1800/2000)*100 = 90

5 0
3 years ago
Read 2 more answers
Other questions:
  • N article published in the washington post claims that 45 percent of all americans have brown eyes. a random sample of n=78 coll
    15·1 answer
  • Why do executives and managers spend more time listening than do workers?
    7·2 answers
  • The Treasury bill rate is 4% and the market risk premium is 7%. Project Beta Internal Rate of Return, % P 0.85 18 Q 0.00 14 R 2.
    6·1 answer
  • Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. SSC is considering the development of a new line of hig
    9·1 answer
  • Manta Ray Company manufactures diving masks with a variable cost of $25. The masks sell for $34. Budgeted fixed manufacturing ov
    14·1 answer
  • Recently, Curtis Gibson had an interview for the position of a senior manager at a transit service. At the interview, the interv
    10·1 answer
  • A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that fa
    9·1 answer
  • Comparative advantage is the ability to convince others of the best choices to make in their own self-interest. perform an activ
    9·1 answer
  • On December 1, 2015, Logan Co. purchased a tract of land as a factory site for $800,000. The old building on the property was ra
    15·1 answer
  • Your body uses minerals for many different jobs, including __________. (select all that apply.)
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!