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Natasha_Volkova [10]
3 years ago
12

A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,40

0. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
Business
1 answer:
nadezda [96]3 years ago
4 0

Answer:

Year 1 - $192,000

Year 2 - = $153,600

Year 3 - $122,880

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2

Depreciation expense in the first year = 0.2 x $960,000 = $192,000

Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000

Depreciation expense in year 2 = 0.2 x $768,000 = $153,600

Book value in year 3 = $768,000 - $153,600 = $614,400

Depreciation expense in year 3 = 0.2 x $614,400 = $122,880

I hope my answer helps you

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Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over
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Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

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3 years ago
A company that adapts its product features for an international market is pursuing one of the three principle strategic options:
sergij07 [2.7K]

Answer: A company that adapts its product features for an international market is pursuing "B. A global strategy of offering products to a worldwide market.".

Explanation: A global business strategy implies participation in the world market and requires adaptation before applying it.

3 0
3 years ago
According to price progression, the lowest prices caskets are placed in the _______ quartile.
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The lower-priced caskets are positioned in the higher mark-on quartile in accordance with price progression. Caskets that cost less will be marked up more.

<h3>What is Pricing Method?</h3>

The pricing method are the ways in which the cost of goods and services can be determined after taking into account all the variables influencing the pricing strategy as a whole, including the product or service, the competition, the target market, the product's life cycle, the firm's expansion plans, etc.

A pricing strategy is a plan or technique for choosing the most competitive price for a good or service. It assists you in setting prices while taking customer and market demand into account in order to maximize profits and shareholder value.

With this price strategy, as the consumer's investment rises, so does the value to them as opposed to value progressive pricing. An approach to pricing in which the cost of the casket and the markup are inversely related.

To learn more about pricing strategy, refer to;

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2 years ago
Mantle Company has been in business several years. At the end of the current year; the unadjusted trial balance shows:
maksim [4K]

Answer:

  • a. Bad debts are estimated to be 7% of RECEIVABLES  

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

Explanation:

December 31  

Cr Sales Revenue $ 2.200.000

Dr Accounts Receivable  $ 310.000

Cr Allowance for Doubtful Accounts $ 5.700

 

a. Bad debts are estimated to be 7% of RECEIVABLES  

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

 

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT.  

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the value as % of account receivable.  

 

Bad accounts are those credits granted by the company and there is no possibility of being charged.  

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."  

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets  

 

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.  

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)  

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.  

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