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allsm [11]
3 years ago
14

On January 1, 2019, Richard Corporation acquired machinery at a cost of $750,000. The corporation adopted the double-declining b

alance method of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for the machinery. What will be the depreciation expense for 2022?
Business
1 answer:
butalik [34]3 years ago
5 0

Answer:

The depreciation for the year 4 is $54,857.

Explanation:

The double declining depreciation method would be used which is as under:

Double Declining depreciation = (Cost - Acc. Depreciation) * 2 / Useful life

Now by putting values, we have:

Y1 Depreciation = ($750,000 - 0) * 2 / 10 years = $150,000

Y2 Depreciation = ($750,000 - 150,000) * 2 / 10 years = $120,000

Y3 Depreciation = ($750000 - $150,000 - $120,000) * 2 / 10 years

= $96,000

Now from year 3 onward, the depreciation method was straight-line and which can be calculated as under:

Straight-line Depreciation = (Cost - Salvage value) / Useful Life

Here

Cost = $750000 - $150,000 - $120,000 - $96,000= $384,000

Remainder life is 7 years

Now by putting values, we have:

Y4 Depreciation = ($384,000 - 0) / 7 years = $54,857

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True or False : When you are thinking of something you want to predict, measure, or change in your business, you are probably th
Ad libitum [116K]

Answer:

True

Explanation:

Dependent variables are variables which are altered by the changes to the independent factors or variables.

The following are instances of dependent and independent variables:

       

Dependent Variable (DV): Profit, Product Quality, Staff Attrition during a recession.

Profit (DV) depends on sales, expenses, the economy, the proficiency of the sales staff, the quality of the product.

The Quality of the Product (DV) depends on the production process, product design, quality of raw materials etc

So, many of the factors highlighted above, which affect the dependent variables are called Independent variable.

Profit, for instance, can be forecasted or changed IF changes are made to sales.

It is possible to measure the quality of a product or service. It can also be altered by increasing or decreasing the quality of raw material input.

Cheers!

8 0
2 years ago
Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Item 5 Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Crich Corporation u
emmasim [6.3K]

Answer:

under-applied overheads is $1,340

Explanation:

Note : I have attached the full question/similar as an image below.

Actual Overheads   = $594,960

Applied Overheads = $594,960 / 22,200 x 22,150 = $593,620

Since,

Actual Overheads  > Applied Overheads, overheads have been under-applied.

Amount of under-applied overheads is $1,340 ($594,960 - $593,620).

5 0
2 years ago
Consider the following restaurants: Pizza Hut, Popeyes, and Taco Bell. When conducting a review on any business, the first thing
alisha [4.7K]

Answer:

Strengths:

- Name recognition is the biggest strength.  

- they offer variety of products than its competitors  and the products    are of good quality at an affordable price.

Weaknesses:

- As it is being run as full-fledged restaurant overhead cost is high.  this means their overhead cost is higher.

- They mostly cover urban areas with a considerable population and customer segment.

Opportunities:

- They have further scope to increase their product line according to the location and increase the revenue.  

- Their facilities can be made more attractive and innovative to engage more customers.

- the business can lend and promote discounts to increase the satisfaction level of the customer.

Threats:

- increasing competition.

- Raising raw material price, especially dairy products that costomers want/need.

the business should work on:

The company has to focus more on new product development. Further, it is recommended to customize the taste of the product according to the local needs. Also, if the overhead cost is reduced by implementing modern and more economical infrastructure facility. The company has to make sure that, the facility also attract more customers. This would be added advantage to provide more offers and discounts to the customer. Hence this would increase customer satisfaction and bring more loyal customers.

Explanation:

6 0
2 years ago
Type the correct answer in the box. Which marketing-related concept is described in the following scenario? The booming Industri
DanielleElmas [232]

<u>Answer: </u>Production concept

<u>Explanation:</u>

Production concept is based on concentrating on the efficiency of the production and manufacturing. The basis of production concept is to make the goods available to the consumer at affordable prices. By producing in mass quantities the companies believed they can reduce the cost of production.

Also that supply can be increased when the cost of production is lower. Economies of scale can be achieved by the company when they reduce cost of production they can increase their profit earning capacity.

4 0
3 years ago
A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement.
Scilla [17]

Answer:

Account Balance in margin account:

Investment = $6,000 (100 x $60)

The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day.  It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after.  This cancels the earlier unrealized gain.

Explanation:

The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account.  According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.  The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."

5 0
2 years ago
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