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erik [133]
3 years ago
12

The asset's book value is $70,000 on July 1, Year 3. On that date, management determines that the asset's salvage value should b

e $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:
a. $8,125.00
b. $7,375.00
c. $4,062.50
d. $3,750.00
e. $7,812.50

Business
1 answer:
Luden [163]3 years ago
8 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Asset's book value as on July 1, Year 3 = $70,000

Asset's salvage value = $5,000

Original estimate = $10,000

Depreciation for remaining year 3 (6 months) :

= [( Book value - Salvage value) ÷ (useful life - years passed)] × (6÷12)

= [($70,000 - $5,000) ÷ (10 - 2)] × (6÷12)

= ($65,000 ÷ 8) × (6 ÷ 12)

= $8,125 × 0.5

= $4062.5

Workings:

Years passed: as 2 years already passed.

One table is missing from this question, so I attached that table with the answer.

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Ierofanga [76]

Answer:

The correct answer is: shortage; elastic; same number of.

Explanation:

Suppose the price ceiling is fixed at $50. The market equilibrium price is more than $50. This means that the price ceiling is binding.

Fixing the price ceiling below the equilibrium price level will create a shortage of tickets. There is an inverse relationship between price and quantity demanded. So the quantity demanded will be higher at a lower price. The quantity supplied on the other hand will be lower. This is because the quantity supplied is positively related to the price.

So at the ceiling price the quantity demanded will be higher than the quantity supplied. This shortage will be more if the demand is elastic. An elastic demand implies that a decrease in price will cause the quantity demanded to increase to a greater extent.

5 0
3 years ago
At the annual holiday party, ABC Airlines gives awards to employees to recognize examples of "going above and beyond" to serve c
IgorLugansk [536]

Answer: rip kobe

Explanrioation:

6 0
3 years ago
Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of
11Alexandr11 [23.1K]

Answer: See explanation

Explanation:

a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?

The amount of cash required for the payment will be:

Purchases: = $12,900

Less: Returns = $2500

Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104

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b. What account is credited by Barans Company to record the return?

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3 0
3 years ago
BatCo makes metal baseball bats. Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. O
aalyn [17]

Answer:

Cost variance= 7 unfavorable

Explanation:

Giving the following information:

Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. Assume the actual cost to manufacture one metal bat was $40.

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3 years ago
David, an Alabama resident, files suit in an Alabama court against QuickAds, an internet company based in Georgia that provides
Wewaii [24]

Answer:

B) not likely to have jurisdiction over the case because QuickAds is based in Georgia.

Explanation:

US laws do not recognize the legal existence of foreign or out of state companies, a company only exists in the state at which it was chartered. Although the internet has complicated things, since boundaries have faded, but some conditions must be met before a state court can serve a foreign company.  

For a foreign company to be served by a state court, it must carry on “continuous and systematic” affiliations with residents of the state which makes them “essentially at home”. The company's operations must be substantial enough to make the company at home, i.e. it must carry a significant amount of business within the states boundaries.

Apparently this is not the case with QuickAds, so Alabama state courts will not have jurisdiction over it.

4 0
3 years ago
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