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Nitella [24]
3 years ago
11

On January 1, a machine with a useful life of five years and a residual value of $5,000 was purchased for $25,000. What is the d

epreciation expense for year 2 under straight-line depreciation?a. $5,000b. $15,000c. $4,000d. $12,000
Business
1 answer:
emmasim [6.3K]3 years ago
7 0

Answer:

c. $4,000

Explanation:

The computation of the depreciation expense for year 2 under straight-line method is shown below:

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

= ($25,000 - $5,000) ÷ (5 years)

= ($20,000) ÷ (5 years)  

= $4,000

In this method, the depreciation is same for all the remaining useful life i.e $4,000 is charged for remaining three years

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You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the e
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Answer:

Ans. a) $769.27 is the amount of money that you can withdraw every month for 120 months at a rate of 3.2% compounded monthly if you deposit $235.15 every month, for 20 years.

Explanation:

Hi, first we have to turn this compounded rate into an effective rate, in this case, effective monthly, that is by doing the following.

r(monthly)=\frac{0.032}{12} =0,00267

that is 0.267% effective monthly.

Now, we need to take all this annuities to 20 years in the future, which is going to be the present value to use in order to find the amount of moneuy that you can withdraw every month, for 120 months (10 years).

FutureValue=\frac{A((1+r)^{n} -1)}{r}

For A = 235.15; r =0,00267; n=240

FutureValue=\frac{235.15((1+0.00267)^{240} -1)}{0.00267}=78,910.41

Now, in order to find the amount of money to withdraw for 10 years, every month, we have to use the following equation.

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Since the future value 20 years from now is the present value of the annuity we are looking for, all should look like this.

78,910.41=\frac{A((1+0.00267)^{120}-1) }{0.00267(1+0.00267)^{120} }

78,910.41=A(102.5781087)

A=\frac{78,910.41}{102.5781087} =769.27

So the answer is a) $769.27

Best of luck.

8 0
3 years ago
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Answer:

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I. P = $80, VC = $180,000, and Q = 2,000

III. P = $11.55, ATC = $15, and AFC = $2

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In a perfectly competitive market, businesses will shut down in the short run if the unit price of their products is smaller than the variable cost of producing that product.

I: price is $80 which is less than the variable unit cost $90

II: price $535 which is larger than the variable unit cost $500

III: price $11.55 which is less than the variable unit cost $13 (= $15 - $2)

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