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Lapatulllka [165]
3 years ago
7

Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an

d used the straight-line method for deprecation. Business is booming, so lucky purchased $15000 in equipment during the current year to help meet production demands. Which of the following statements is true regarding the depreciation choices available to lucky.a. The new machinery can be depreciated using the same method or different method than the previously purchased machineryb. IF lucky wants to use a different depreciation method, he must recapture depreciation and change the method used on the prior purchase of machineryc. The new machinery must be depreciated using the same method as the previously purchased machinery
Business
1 answer:
Jet001 [13]3 years ago
6 0

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

  • Straight-line.
  • Double declining balance.
  • Units of production.
  • Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

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Division A makes a part with the following characteristics: Production capacity in units 34,000 units Selling price to outside c
azamat

Answer:

Division A

If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be:

worse off by $30,000 each period.

Explanation:

a) Data and Calculations:

Production capacity of Division A = 34,000

Selling price per unit to outside customers = $21

Variable cost per unit = $13

Total fixed costs = $105,800

Order from Division B = 10,000

Price that Division B purchases from outside supplier = $18

Selling to Division B instead of selling to outside customers will result in a loss of $3 ($21 - $18) per unit

The total loss = $30,000 ($3 * 10,000)

7 0
3 years ago
Using the allowance method, is bad debt expense recognized in
mezya [45]

Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.

One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.

Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.

Learn more about bad debts here

brainly.com/question/24871617

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3 0
1 year ago
For each of the following products, indicate whether you believe demand will be relatively price elastic or relatively price ine
insens350 [35]

Answer:

Note that goods that are considered in general have a broad demand and goods with broad demand are inelastic as there are no substitutes for them. Goods that are specific by nature have narrow demand and have elastic demand because consumers can switch to others if the price is increased slightly.

Hence, Mayonnaise in general, Washing machines and beer have inelastic demand as there are no close substitutes. The remaining three, namely, specific brand of mayonnaise, Chevrolet automobiles and Tesla automobiles have elastic demand as there are substitutes and consumers/users will switch to others if the price is no more favorable.

8 0
3 years ago
Dakota Company had net sales (at retail) of $260,000.
disa [49]

Answer:

$35,860  

Explanation:

The computation of the ending inventory using the retail inventory method is shown below

Particulars                      Cost          Retail

Opening Inventory(A)   $63,800    $128,400

Purchases(B)                 $115,060    $196,800

Goods available

C=(A-B)                         $178,860     $325,200

Cost ratio

($178,860 ÷ $325,200 × 100) 55%  

Sales at retail (D)                            $260,000

End, Inventory at Retail                     $65,200

($325,200 - $260,000)

End, Inventory at Cost    $35,860  

($65,200 × 55%)

8 0
3 years ago
Which of these will most likely have a positive effect on your lifestyle?
Zinaida [17]

Answer:

A college degree

Explanation:

College life is very likely

5 0
2 years ago
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