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pickupchik [31]
3 years ago
13

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $28,000. The estimated useful life was

five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 1,900 units; year 2, 2,900 units; year 3, 1,900 units; year 4, 1,900 units; and year 5, 1,400 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2
Business
1 answer:
jeyben [28]3 years ago
6 0

Answer:

You get the highest net income in year 2 with  <u>Units-of-production  method.</u>

Explanation:

Schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods is attached.  

<u>Straight-line </u>

Depreciation expense 2nd year=$5.000=(Original Value -Residual Value)/Useful life

<u>Units-of-production </u>

Units of Production Rate=2.5=(Original Value -Residual Value)/estimated productive life

Depreciation expense 2nd year= 7250

<u> Double-declining-balance. </u>

Depreciation rate        20,00%        1/useful life *100

Depreciation expense 2nd year= 6720

Download xlsx
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Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.60 dividend every year, in perpetuity. If thi
faltersainse [42]

Answer:

Required rate of return is 6.97%

Explanation:

The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:

Stock price =dividend/required rate of return

stock price is $80.40

required rate of return is unknown

the dividend on the preferred stock is $5.60

required rate of return=dividend/stock price

required rate of return =$5.60/$80.40=6.97%

The required rate of return based on the stock price and dividend information provided is 6.97%

4 0
4 years ago
A company can sell any mix of Product A and Product B at full capacity. The company has 100,000 hours of capacity. The demand fo
Marta_Voda [28]

Answer:

Company A produce 100,000.

Explanation:

According to the question , the computation is shown below:-

Particulars                                     Product A      Product B

Contribution margin per unit         $20                 $30

Hours per unit                                1                       2

Contribution margin per unit         20                    15

As we can see that the company A produces 100,000 and the same is the answer

8 0
3 years ago
tuttle enterprises is considering a project that has the following cash flow and weighted average cost of capital (wacc) data. w
erica [24]

Tuttle enterprises are considering a project that has the following cash flow and the weighted average cost of capital (WACC) data. The projected net present value is 074.36.

A project's net present value is the sum of the destiny values of the net coin flows compounded at the desired fee of going back minus the net funding. if safety gives a series of coin flows with an NPV of $50,000 and an investor will pay exactly $50,000 for it, then the investor's NPV is $0. It method they'll earn something the cut price charge is on the security.

Net present value or NPV is the sum of the prevailing value of coins inflows and outflows. In other phrases, it's far the distinction between the present values of cash inflows and the prevailing value of cash outflows over a while.net gift cost shows how a lot of money an assignment or investment will advantage or lose in terms of the present-day budget. future coins drift would not carefully mirror the current cash drift of an undertaking because of the impact of factors along with inflation and lost compound hobby so NPV adjusts for this reason.

Learn more about Net present value here:-brainly.com/question/18848923

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8 0
2 years ago
What is a trade-off?
mojhsa [17]
The best answer is:
C) <span>a choice that must be made due to scarcity.
A tradeoff occurs when you must choose between two or more things, selecting the best option given the constraints. Choosing what to spend your allowance on, for example, is involves a trade-off that you must make due to the scarcity of your allowance money (you don't have unlimited money). D is a tempting answer, but it does not define trade-off as well as C. </span>
3 0
3 years ago
One Planters NUT-rition Cranberry Almond Peanut bar weighs 35 grams and is composed of 23% lipid, 57% carbohydrate, 14% protein,
Aloiza [94]

Answer:

C) 42%; 11%

Explanation:

The total calories in one Planters NUT-rition Cranberry Almond Peanut bar =

  • fats: 35 grams x 23% x 9 calories = 72.45 calories
  • carbohydrates: 35 grams x 57% x 4 calories = 79.8 calories
  • proteins: 35 grams x 14% x 4 calories = 19.6 calories
  • total 171.85 calories

percent calories from fat = 72.45 calories / 171.85 calories = 0.4216 x 100 = 42.16% ≈ 42%

percent calories from protein = 19.6 calories / 171.85 calories = 0.1141 x 100 = 11.41% ≈ 11%

6 0
4 years ago
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