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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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Seabuds Corp., a company that sells canned fish, was banned from selling its products after the Food and Drug Administration (FD
Luba_88 [7]

Answer:

Administrative Law

Explanation:

Administrative Law are the norms and rules that the government agencies and companies that interact with them  must follow

3 0
3 years ago
You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate
Luden [163]

Answer:

Debt Ratio = Total Debt Total/ Assets

Equity Multiplier = Assets/Equity

<h2>Lots of Debt</h2>

Debt Ratio

= 32.5/34.25

= 0.95

Equity Multiplier

= 34.25/2

= 17.13

<h2>Lots of Equity </h2>

Debt Ratio

= 2/34.25

= 0.06

Equity Multiplier

= 34.25/32.25

= 1.06

6 0
3 years ago
NOVA Chemicals is a plastics and chemical company whose products are used in a wide variety of applications, including food and
yaroslaw [1]

Answer:

Targeting.

Explanation:

In marketing, Targeting refers to dividing your whole market into specific groups, and focus all your marketing effort to the group that is most likely would find your product relevant and appealing.

In the example above, we now that NOVA only markets its plastic chemical products to food and electronics industry because these industries have a lot more application for NOVA's product compared to other industries.

(For example, the food industries could use the plastic products for their packaging and utensils. The electronic industries could use NOVA's product for its product's structure.)

4 0
3 years ago
In a deferral adjustment for revenues collected in advance that are now earned, ______. a) the liability recorded when cash was
frosja888 [35]

Answer:

a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned

Explanation:

When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).

Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.

8 0
3 years ago
1.6 Harper Travel Agency purchased land for $85,000 cash on December 10, 2015. At December 31, 2015, the land's value has increa
noname [10]

Answer:

$85,000

Explanation:

In the balance sheet, a company records the value of assets at their historical cost. Assets are recorded in the balance sheet at the price that they were acquired.  Even if a company has strong reasons to believe that the value of an asset has increased, It cannot adjust its value in the books.

Harper will record the value of the land at $85,000.  $93,000 represents the fair value of the property. Harper cannot record the fair value in the balance sheet. The fair value is only used when disposing of the property. The only way of verifying the fair value is by selling the property.

4 0
3 years ago
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