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hodyreva [135]
3 years ago
14

Olivia Company, whose reporting year ends on December 31st, purchased a vehicle for $50,000 on March 12th, 2018. The vehicle’s e

stimated useful life is five years, and it is expected to be driven 250,000 miles (70,000 miles in 2018 and 45,000 for each of the remaining four years). Olivia estimated the salvage value at $5,000. Using the units-of-activity method, what amount of depreciation expense should Olivia record in year 2018?
Business
2 answers:
Sati [7]3 years ago
8 0

The correct answer is $12,600

The unit of production depreciation method is to determine the level at which value of assets has depreciated over time. The units of production depreciation enable company to determine the value of assets upon usage.

<h2> Further Explanation</h2>

The depreciation cost per miles can be calculated by subtracting the purchased cost from the salvage value and divide the quotient by the total miles.  

This can be expressed as:

Depreciation cost per miles = (purchase cost - salvage value) / total miles driven

From the given question:

  • The purchase cost = $50,000
  • The salvage value = $5,000
  • The total miles = 250,000 miles

Substituting the value, then we have:

Depreciation cost = ($50,000 - $5,000) / 250,000 miles

= $45,000 / 250,000 miles

=$0.18 per miles

Recall the total miles driven in first year (2008) is 7000 miles; therefore, you have to multiply the value derived and the total mines driven in first year.

Therefore, you have:

7000 x 0.18  

= $12,600

LEARN MORE:

  • A factory machine was purchased for $375000 on january 1, 2018 brainly.com/question/7057945
  • El tapitio purchased restaurant furniture on september 1, 2018, for $45,000 brainly.com/question/6453940

KEYWORDS:

  • olivia company
  • salvage value
  • amount of depreciation expenses
  • purchase cost
  • total miles
Trava [24]3 years ago
5 0

Answer:

$12,600

Explanation:

If Olivia Company uses the units of production depreciation method, we must calculate the depreciation cost per mile:

depreciation cost per mile = (purchase cost - salvage value) / total miles driven

depreciation cost per mile = ($50,000 - $5,000) / 250,000 miles

depreciation cost per mile = $45,000 / 250,000 = $0.18 per miles

Now we multiply by the total miles driven the first year times the depreciation cost per mile = 70,000 units x $0.18 per unit = $12,600

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Answer:

Total dollar return = 2400 + 8040 = $10440

Option d is the correct answer

Explanation:

To calculate the total dollar return on the investment, we will calculate the value of dividend received from the shares and the capital gain made on this investment. The capital gain is the appreciation in value less the initial cost paid for the investment.

First we calculate the value of dividend received on the investment.

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2 years ago
A company purchased $3,600 worth of merchandise. transportation costs were an additional $315. the company later returned $250 w
Anestetic [448]

Answer: $3,564.50

Explanation:

The total amount that the company will pay for the merchandise is the net cost of the merchandise, less a 3% cash discount, plus the transportation costs. The cash discount normally only applies to the merchandise and not the transportation costs.

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Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few day
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Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and she needs to decide right away how and where to purchase her books. Brita will most likely engage in "limited problem solving" process.

<h3>What is limited problem solving process?</h3>

Limited issue solving is another sort of consumer problem-solving that consumers employ when they need information about unknown brands in well-known product categories or when they make sporadic purchases of goods; it takes a fair amount of time for information collecting and consideration.

The characteristics of limit solving process are-

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  • When buying a new, expensive, or infrequently purchased goods, consumers engage in lengthy problem solving.
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Therefore, in the given case- Brita lacks the time to thoroughly consider all of his alternatives. Additionally, he will likely follow suit this time around given his recent success purchasing books online (unless he waited too long and cannot receive his books in time).

To know more about steps in the problem solving process, here

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6 0
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Suppose Saron has 7 Birr to be spent on two goods: banana and bread. The unit price of banana is 1 Birr and the unit price of a
mojhsa [17]

Answer:

Solution:

A.

p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}p

x

=3,G

x

=

3

100

=33

3

1

p_y=5, G_y=\frac{100}{5}=20p

y

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y

=

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100

=20

B.

100-0.25\times 100=75100−0.25×100=75

p_x=3, G_x=\frac {75}{3}=25p

x

=3,G

x

=

3

75

=25

p_y=5, G_y=\frac{75}{5}=15p

y

=5,G

y

=

5

75

=15

C.

p_x=6, G_x=\frac {100}{6}=16\frac{2}{3}p

x

=6,G

x

=

6

100

=16

3

2

D.

p_y=5, G_y=\frac{100}{4}=25p

y

=5,G

y

=

4

100

=25

2.

MU_x=68-60=8, p_x=2MU

x

=68−60=8,p

x

=2

MU_y=29-25=4, p_y-?MU

y

=29−25=4,p

y

−?

\frac {MU_x}{p_x}=\frac{MU_y}{p_y}

p

x

MU

x

=

p

y

MU

y

\frac{8}{2}=\frac {4}{p_y}

2

8

=

p

y

4

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8 0
2 years ago
XYZ Corp issued $600,000 of 9% , 10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. I
Rom4ik [11]

Answer:

c. $18, 750

Explanation:

The computation of the amount of interest expense i.e. accrued is shown below:

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= $18,750

The 4 months is calculated from July 1 to October 31

Hence, the correct option is c. $18,750

5 0
3 years ago
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