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pickupchik [31]
4 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]4 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

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Enterprises face the challenge of deciding which investments to make and how to allocate scarce resources to competing projects.
Tema [17]

Answer: Business case

Explanation: In other to eliminate the dilemma posed by having to allocate resources particularly in those which are not readily available in abundance or having to choose between two or more different options, tasks or projects, managers are often faced with a decision dilemma which are is usually analysed by making a business case in other to identify the modalities attached with each project or task on the basis of risk, benefit attached, cost, timing of such projects and so on. This will enable managers to arrive at a reasonable justification to choose an option over the other which will yield a longterm return or benefit to the organization.

5 0
4 years ago
1. What is the London Underground?
beks73 [17]
1. London UnderGround is a public rapid transit<span> system that connects various cities in England.
London Underground is the first underground railway that ever created in the world and predicted to carry approximately more than 1.3 Billion Passengeeach year.

2. The original problem was that there's too much traffic on the street of London during that time., which reduce people's overall productivity because they have to spend a large amount of their time stuck on the road. Even until this day, this problem is not 100% resolved.

3. The major difference would be the transportation vehicle and the number of lines.
Initially, London underground was a pedestrian tunnel with only one line. In current time, London underground is a train transportation system with 13 lines that connect various cities.

4. Cross rail is the latest line that created in London Underground, which opened up a new route Between </span><span> Maidenhead and Heathrow.
</span><span>This line is about 118 Kilometers in length and is planned to be ready to use by December 9th 2018

5. TBM stands for </span>tunnel boring machines<span> .
</span>tunnel boring machines  are the equipment that is used to excavate tunnels through soil and rocks. Compared to other method, tunnel boring machines provide less disturbance,  smoother tunnel wall, and less chance to destroy the foundation on the upper ground.
<span>
6. Eye of the needle refers to the </span><span> very crowded space that the Tunnel Boring much get through in order to create the Tunnel.
</span><span>This particular region tend to be realy hard to handle because small mistakes could make the tunnel walls to crumble and cause many harms to the workers underneath it.

7.  I  believe the biggest challenge would be grathering necessary budget.
the investment in creating underground tunnel, commonly only produce return of investmant in around 10-15 Years.
So, finding the orgaizations who are willing to take this risk is extremely difficult.

8. They allocate the engineers to both the bottom and upper ground at the same time.
The botto team is responsible in creating the tunnel, the upper team is responsible in identifying several characteristics such as Crack on the ground or hollow space.</span>
3 0
3 years ago
An investor owns $8,000 of Adobe Systems stock, $9,000 of Dow Chemical, and $9,000 of Office Depot. What are the portfolio weigh
Grace [21]

Answer:

Adobe System

0.3077 ± 0.001

Dow Chemical

0.3462 ± 0.001

Office Depot

0.3462 ± 0.001

Explanation:

Calculation for the portfolio weights of each stock

First step is to calculate the Total portfolio

Total portfolio = $8,000 + $9,000 + $9,000

Total portfolio == $26,000

Last step is to calculate the portfolio weights of each stock

Adobe System weight = $8,000 / $26,000

Adobe System weight = 0.3077

Dow Chemical weight = $9,000 / $26,000

Dow Chemical weight = 0.3462

Office Depot weight = $9,000 / $26,000

Office Depot weight= 0.3462

Therefore the portfolio weights of each stock will be :

Adobe System

0.3077 ± 0.001

Dow Chemical

0.3462 ± 0.001

Office Depot

0.3462 ± 0.001

7 0
3 years ago
A perpetuity of $6,000 per year beginning one year from today is said to offer a 15% interest rate. What is its present value? g
N76 [4]

Answer:

PV= $40,000

Explanation:

Giving the following information:

Perpetuity of $6,000 per year beginning one year from today is said to offer a 15% interest rate.

To calculate the present value, we need to use the following formula:

PV= Cf/i

Cf= cash flow

i= interest rate

PV= 6,000/0.15

PV= $40,000

3 0
3 years ago
Tom’s Tool &amp; Die uses a predetermined factory overhead rate based on machine-hours. For August, Tom’s budgeted overhead was
kondor19780726 [428]

Answer:

(-$1,250) over applied for the period

Explanation:

Predetermined overhead rate:

= budgeted overhead ÷ budgeted volume

= $465,500 ÷ 49,000

= $9.5

Overhead cost with 43,500 hours incurred, they have applied :

= Actual machine-hours × Predetermined overhead rate

=  43,500 × 9.5

= $413,250

They actually incurred $412,000 of overhead cost for the period so they have :

= Actual overhead - Overhead cost with 43,500 hours

= $412,000 - $413,250

= (-$1,250) over applied for the period.

8 0
3 years ago
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