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adelina 88 [10]
3 years ago
10

Machinery was purchased for $85,000. Freight charges amounted to $3,500 and there was a cost of $10,000 for building a foundatio

n and installing the machinery. It is estimated that the machinery will have a $15,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will bea. $19,700b. $16,700c. $14,300d. $14,000
Business
1 answer:
tia_tia [17]3 years ago
7 0

Answer:

b. $16,700

Explanation:

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

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

= ($98,500 - $15,000) ÷ (5 years)

= ($83,500) ÷ (5 years)  

= $16,700

The original cost is computed below:

= Original cost  of machinery + freight charges + cost of building a foundation and  installing the machinery

= $85,000 + $3,500 + $10,000

= $98,500

In this method, the depreciation is same for all the remaining useful life

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The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entri
zvonat [6]

Answer:

e. $104,000.

Explanation:

The computation of the ending capital balance is shown below:

As we know that

Ending capital balance = Opening capital balance + net income - withdrawn amount

where,

Opening capital balance = $64,000

Net income is

= Revenues - expenses

= $100,000 - $48,000

= $52,000

And, the withdrawn amount is $12,000

So, the ending capital balance i s

= $64,000 + $52,000 - $12,000

= $104,000

8 0
3 years ago
MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company expect
Black_prince [1.1K]

Answer:

$21.859

Explanation:

According to the scenario, computation of the given data are as follow:-

Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period

1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1

                  = 1.20 ÷ 1.12

                 = 1.071

2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2

                   = $1 × (1.44) ÷ 1.254

                  = $1.148

3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3

                    = $1 × (1.44) × (1.10) ÷ 1.405

                     = $1.127

4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4

                    = $1 × (1.44) × (1.21) ÷ 1.574

                     = $1.107

5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5

                     = $1 × (1.44) × (1.331) ÷ 1.762

                     = $1.088

6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]

= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) ×  (1.762)

= $2.012 ÷ 0.1233

= $16.318

Now

Share’s Current Value is

= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318

= $21.859

We simply applied the above formula

5 0
3 years ago
kala and leah partners in best designs have capital balances of $40,000 and $60,000 respectively. adam joins the partnership by
inna [77]

Answer:

The solution to the following problem is done below.

Explanation:

a) Journalize the entries to record the admission of adam to the partnership.

Account Title                                                                          Dr            Cr

Kala, Capital                                                                         20,000

Adam, Capital                                                                                       20,000

Cash                                                                                      10,000

Kala, Capital                                                                                           8,000

Leah, Capital                                                                         6,000

Adam, Capital                                                                                        24,000

b) Immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.

Account Title                                                                          Dr            Cr

Leah, Capital                                                                        13,500

Denton, Capital                                                                                    13,500

6 0
3 years ago
Read 2 more answers
If most cartel members keep their agreement to cut back production: a. it's not profitable in the short run for another member t
Stells [14]

Answer: b. it's profitable in the short run for another member to increase production.

Explanation:

This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.

If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.

The other members would however respond by increasing production as well so those profits would stop towards the long run.

4 0
3 years ago
Determine the finance charge using the previous balance method. The account balance on April 1st is $50.51. On April 15th, a pay
Sedbober [7]

Answer:

$0.7577

Explanation:

The computation of the finance charge is shown below:

Finance charge =  The account balance × monthly rate

where,

The account balance = $50.51

Monthly rate = 18% ÷ 12 months = 0.015

So, the finance charge is

= $50.51 × 0.015

= $0.7577

We simply multiplied the account balance with the monthly rate so that the finance charge could come

All other information is not relevant. Hence, ignored it

5 0
3 years ago
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