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Vlada [557]
3 years ago
6

Grouper Company purchased a new machine on October 1, 2020, at a cost of $114,800. The company estimated that the machine will h

ave a salvage value of $14,800. The machine is expected to be used for 10,000 working hours during its 4-year life.
Compute the depreciation expense under straight-line method for 2020
Business
1 answer:
Colt1911 [192]3 years ago
3 0

Answer:

$6,250

Explanation:

Cost of machine = $114,800

Salvage value = $14,800

Life of machine = 4 years

Depreciable cost = Cost - Salvage value

                             = $114,800 - $14,800

                             = $100,000

Date of purchase = October 1, 2020

Assets used for period in 2020 = 3 months

Annual depreciation:

= Depreciable cost ÷ life of assets

= $100,000 ÷ 4

= $25,000

Depreciation expense for 2020:

= Annual depreciation × (3 ÷ 12)

= 25,000 × (3 ÷ 12)

= $6,250

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Answer:

The money supply will increase by 12,500 dollars

Explanation:

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The multiplier effect will be 1/required reserve ratio: 1/0.2 = 5

we multiply 2,500 dollars times the money multiplier of 5

total icnrease inthe money supply: 2,500 x 5 = 12,500

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3 years ago
Mahmoud wants to start a business making designer chairs. To do this he will need:​
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3 years ago
Which statement below best answers the economic question "How to produce"?
FromTheMoon [43]

Answer:

An artisan uses local wood from a sustainable tree farm to make products.

(third option listed)

Explanation:

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4 0
2 years ago
The following information is available for Armstrong Company: Net income $450 Increase in plant and equip. $170 Depreciation exp
ad-work [718]

Answer:

$505

Explanation:

Armstrong Company

Cash flow from operating activities

Adjustments to reconcile net income to operating cash flow.

Net income

$450

Less : Increase in plant and equipment

($170)

Add : Depreciation expenses

$80

Add : Payment of dividends

$10

Add : Decrease in accounts receivable

$20

Add : Increase in long term debt

$100

Less : Increase in Inventories

($15)

Add : Decrease in Account payable $30

Net Cash flow from operating activities

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