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spin [16.1K]
4 years ago
8

a tractor at a cost of "$540,000". The tractor has an estimated salvage value of $60,000 and an estimated life of 8 years, or 12

,000 hours of operation. The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,200 hours in 2020. What amount will Spencer Company report as depreciation expense over the 8-year life of the equipment using straight-line depreciation
Business
1 answer:
natulia [17]4 years ago
8 0

Answer:

$60,000

Explanation:

The computation of the depreciation expense using the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($540,000 - $60,000) ÷ (8 years)

= ($480,000) ÷ (8 years)  

= $60,000

In this method, the depreciation is the same for all the remaining useful life

We simply used the above formula

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Aggressive growth fund is the correct answer.

Explanation:

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3 years ago
Dividend Company is a are company that as been profitable and growing for a long time. In the most recent shareholders report, t
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Dividends= $ that people who bought stock in a company receive. Generally, these increase when the company is doing well.
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4 0
4 years ago
Carper Company is considering a capital investment of $390,000 in additional productive facilities. The new machinery is expecte
VARVARA [1.3K]

Answer:

(1) Payback period is 4.588 years or 4 years and 215 days

(2) 5.13%

Explanation:

(1)

Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.

Payback period = Initial Investment / Annual net cash flow

Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days

(2)

As per given data

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Initial Investment = $390,000

Annual rate of return is the ration of net income to the investment made in the project.

Annual rate of return = Annual net Income / Initial Investment  

Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%

8 0
3 years ago
Read 2 more answers
The capital-to-labor ratio is:Question 40 options:a) a key element in decreasing real wages.b) high in rich countries.c) the rat
andrezito [222]

Answer:

b) high in rich countries.

Explanation:

Capital-to- labour ratio measure the degree of capitalisation of an economy.

Labour is the service that is given by workers in exchange for salaries in the production process.

Capital is the long term input that is put into the manufacturing process, usually in the form of machinery or systems that automate production.

Capital-to-labour ratio= Total capital/ Total labour

Rich countries have a high level of capitalisation of their production process, where a lot of activity is automated. So capital is high and labour input is low. This results in a high capital-to-labour ratio.

On the other hand poor countries are more labour inensive, so their capital-to-labour ratio is low.

7 0
3 years ago
Read 2 more answers
1. Suppose the amount of premium leather decreases from 180 to 150 a. Does the shadow price change? Why or why not? b. If possib
kkurt [141]

Answer:

Explanation: A. Shadow price has not changed because Shadow price show value of a commodity without considering final cost.

B. Change in value 180 - 150/180 X 100 = 16.7

C. The optimal solution didn't change because the product price went from it highest profit 180 to it's least cost 150

5 0
3 years ago
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