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lapo4ka [179]
3 years ago
13

Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800

and a useful life of 131750 miles. It was driven 24000 miles in 2017 and 32000 miles in 2018. What is the depreciation expense for 2017?
Business
1 answer:
laiz [17]3 years ago
5 0

Answer:

Depreciation expense for 2017 = $19,200

Explanation:

We know,

Using the units of production depreciation method, depreciation expense per mile = (Total cost - salvage value) ÷ Total miles driven in useful life

Given,

Purchase cost = $109,200

Salvage value = $3,800

Total miles driven in useful life = 131,750 miles

Miles driven in 2017 = 24,000 miles

Therefore,

depreciation expense per mile = ($109,200 - $3,800) ÷ 131,750 miles

depreciation expense = $0.8 per mile

Hence, depreciation expense for 2017 = $0.8 per mile × 24,000 miles

depreciation expense for 2017 = $19,200

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Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs
____ [38]

Answer:

The estimated rate based on labour hour==6

The  actual rate based on labour hour=6.08

The rate based on machine hour=24

The rate based on machine hour= 22.66

Explanation:

Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of  $249,280, actual direct labor hours of  41,000, and actual machine hours of 11,000.We can calculate the to apply .

The estimated rate based on labour hour=240000/40000=6

The  actual rate based on labour hour=249280/41000=6.08

The rate based on machine hour=240000/10000=24

The rate based on machine hour=249280/11000=22.66

4 0
3 years ago
A buyer has decided to offer $335,000 for a home that she really likes. The bank will loan her 80% of the purchase price for 30
RUDIKE [14]

Answer:

We have:

Amount of principal = $268,000

Interest payment = $1,522.24

Explanation:

These can be calculated as follows:

Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000

Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24

Therefore, we have:

Amount of principal = $268,000

Interest payment = $1,522.24

5 0
3 years ago
Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues: 
A. Increase and transfer payments d
oee [108]

Answer:

The correct answer is B. Decrease and transfer payments increase.

Explanation:

Automatic stabilizers soften cyclic fluctuations through their effect on aggregate demand. Indeed, when the economy is in a contractive or recessive phase, the negative or very reduced economic growth generates a decrease in fiscal revenues while higher unemployment increases public expenditures. Consequently, private sector disposable income decreases less than GDP does, thus limiting the contractual effect on aggregate demand, growth and employment. Therefore, the budget balance worsens in this phase by stimulating the economy and facilitating economic recovery. In the opposite sense, in times of expansion, automatic stabilizers generate higher public revenues and lower spending, which allows to increase the public surplus - or reduce the deficit - avoiding excessive expansion that could have negative effects on cycle volatility and price stability.

5 0
3 years ago
During a downturn in the hotel​ industry, chip​ conley, founder of joie de vivre​ hospitality, dealt with the situation by not t
harkovskaia [24]

I believe the answer is: Strategy

Strategy reefers to planned decision that is used to achieve a certain goal. In the example above, the goal of the hotel is to survive the downturn.

Conley realized that front-employees are the most curical resources in such situation since they are basically the main people that directly handled the customers. So, he choose a strategy to improve their general welfare and sacrificing his own needs.

7 0
4 years ago
Which is the best answer
Ipatiy [6.2K]
The answer would be between A and D.
3 0
3 years ago
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