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blsea [12.9K]
3 years ago
6

Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with

a residual value of $6,300 at the end of five years.
Using the straight-line method, the book value at December 31, 2018 would be:
A.$53,760.
B.$60,060.
C.$58,800.
D.$67,200.
Business
1 answer:
arsen [322]3 years ago
3 0

Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

Explanation:

                2018 2019 2020 2021 2022

Cost      67200 53.760 40.320 26.880 13.440

Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

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If the total cost of producing 4 units is $150 and the marginal cost of producing the fifth unit is $20, then the total cost of
Fed [463]

Answer:

$170

Explanation:

Marginal cost is defined as the cost of adding an additional cost of a product or service.

Total cost is the sum total of the cost of all the product and/or service.

Cost of producing 4 units = $150

Cost of producing the 5th unit = $20

The cost of producing one unit = $150/4

= $37.5

Total cost of producing 5 units =

Cost of producing 4 units + cost of the 5th unit

= $150 + $20

= $170

Cost of producing the 5 units = $170

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4 years ago
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7 0
3 years ago
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Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4
Mademuasel [1]

Answer:

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

The nominal interest rate = 8.86%.

Explanation:

Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%

Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%

Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.

Therefore, the nominal interest rate for the question given = 8.86%.

4 0
4 years ago
A company has beginning inventory of 40 units at a cost of $12.50 each on October 1. On October 5, it purchases 26 units at $13.
olga nikolaevna [1]

Answer:

Ending inventory as at Oct 15 : $348

Explanation:

The FIFO (First-In-First-Out) method of inventory valuation is whereby the stock that enters first into inventory is the one that is sold or used first. In other words, the oldest stock is used first. This is common for inventory consisting of perishables such as vegetables, which will be wasted if not used soon.

Oct 1 : Beginning inventory : 40 units x $12.50 = $500

Oct 5 : Purchases : 26 units x $13.50 = $351

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7 0
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