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
Bess [88]
3 years ago
15

B Company switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2018. The change affect

s machinery purchased at the beginning of 2016 at a cost of $83,700. The machinery has an estimated life of five years and an estimated residual value of $4,185. What is B's 2018 depreciation expense?
a. $15,903
b. $21.204.
c. $22.320
d. $10,602.
Business
1 answer:
ad-work [718]3 years ago
6 0

Answer:

correct option is d. $10,602.

Explanation:

given data

beginning of 2016  cost = $83,700

time period = 5 year

estimated residual value = $4,185

solution

we use here  sum of years digit that will be

sum of years = 5+4+3+2+1

sum of years = 15

so here

Year  2016

Depreciation = $83,700 - $4,185

base remaining   = $79515

Life  = 5

depreciation before change of accounting  = \frac{5}{15} \times 79515  

depreciation before change of accounting  = $26505

and

Year  2017

Depreciation = $83,700 - $4,185

base remaining   = $79515

Life  = 4

depreciation before change of accounting  = \frac{4}{15} \times 79515  

depreciation before change of accounting  = $21204

so here total depreciation before change of accounting policy is

total depreciation =  $26505 + $21204

total depreciation =  $47709

and

so Net value of asset at start of 2018 = $79515 - $47709

Net value of asset at start of 2018  = $31806

and

Straight line depreciation for 2018 = $31806 ÷ 3

Straight line depreciation for 2018 = $10602

so correct option is d. $10,602.

You might be interested in
Housing subsidies for low-income households:__________.
Trava [24]

Answer:

D. represent a non-cash transfer.

Explanation:

Subsidized Housing is simply a form of housing where financial incentive is somehow given or provided in the form of a direct payment or tax relief to the housing developer, individual renter e.t.c.

Subsidy is said to be an incentive financial) give in the form of a direct payment or tax relief to the housing developer, property owner, or individual renter.

Low-Income Households are usually a households whose incomes do not surpass 80% of the median income for the area as stated by the department of housing and urban development.

8 0
3 years ago
On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d
aleksandrvk [35]

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

6 0
2 years ago
XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp
Verizon [17]

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

                    = $40

6 0
3 years ago
Wha Companies use relationship marketing to build and maintain relationships with their _______________. *
Elena-2011 [213]

Answer:

customers.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

One of the importance associated with good marketing communication (relationship marketing) is that, it improves the image of a business firm. A business firm with a good company reputation or prestige for the sales and production of quality products with an excellent customer relationship can easily introduce new products into the market at a high price without limitations.

Hence, companies use relationship marketing to build and maintain relationships with their customers.

8 0
2 years ago
Customers are likely to be less price sensitive when:A. it is easy to compare prices.B. someone else pays the bill.C. the total
My name is Ann [436]

Answer:

Letter E is correct. <em>Their share of the cost is hig</em>h.

Explanation:

Price sensitivity is characterized by consumer behavior in relation to the price of a product or service.

The degree of price sensitivity can be measured using the price elasticity of demand, which is the study of the percentage change in the amount of demand for a good or service divided by the percentage change in price.

Some variables may affect consumer behavior, price sensitivity may be higher when there are many substitute products and lower when the consumer values ​​a higher quality good and <u>when its profitability is higher compared to the total cost of the product. </u>

3 0
2 years ago
Other questions:
  • Complete the sentence. Entrepreneurs are visionaries who __________. A. anticipates future consumer demands B. wear vision-corre
    13·1 answer
  • On April 1, the price of gas at Bob’s Corner Station was $3.50 per gallon. On May 1, the price was $4.00 per gallon. On June 1,
    13·1 answer
  • Marvel Company uses a predetermined overhead rate in applying overhead to production orders on a labor-cost basis in Department
    8·1 answer
  • On January 1, Avers Co. borrowed $10,000 cash from Main St. Bank by signing a 60-day, 8% interest-bearing note. On March 1, Aver
    5·1 answer
  • Suppose that a mortgage bank locked in an interest rate for a prospective borrower at 8.5%. However, prior to the loan closing,
    9·1 answer
  • The distribution of the amount of a customer’s purchase at a convenience store is approximately normal, with mean $15.50 and sta
    9·1 answer
  • The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investm
    8·1 answer
  • Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a n
    13·1 answer
  • What bankruptcy provision has the bank chosen?<br><br> 45 POINTS
    12·1 answer
  • the amount of federal income taxes withheld from an employee's gross pay is recorded as a(n) Opayroll expense Oliability O contr
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!