1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zarrin [17]
3 years ago
13

At the beginning of Year 1, Copland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year li

fe and a $7,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation.
Business
1 answer:
kap26 [50]3 years ago
5 0

Answer:

Explanation:

1. Calculate Straight-line depreciation

= Cost - salvage value/useful life

= $52,000 - $7,000/5

= $45,000/5

= $9,000 per year for 5 years

2. Double-declining-balance depreciation.

= 2 X Cost of the asset/Useful Life

= 2 x $52,000/5

= $104,000/5

= $20,800 year 1

= 2 X Cost of the asset/Useful Life

= 2 x (52,000-20,800)/4

= 2 x 31,200/4

=$62,400/4

= $15,600 year 2

= 2 X Cost of the asset/Useful Life

= 2 x (52,000-20,800-15,600)/3

= 2 x 15,600/3

= $31,200/3

= $10,400 year 3

= 2 X Cost of the asset/Useful Life

= 2 x (52,000-20,800-15,600- 10,400)/2

= 2 x 5,200/2

Since the cost bal is less than the salvage value, we have to stop here.

You might be interested in
Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is u
weeeeeb [17]

Answer:

D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.

Explanation:

Interest: $7,200 × .06 × 120/360 = $144

The entry that Majesty should record on the maturity date for this dishonored note is :

Debit Accounts Receivable $7,344

Credit Interest Revenue $144

Credit Notes Receivable $7,200.

5 0
3 years ago
Read 2 more answers
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summ
marin [14]

Answer:

Net Sales

Gross Revenue                                           $‭101,200

Less:

Sales Discount                         $288

Sales Returns                          <u> $1,000 </u>      <u>  $1,288</u>

Net Sales                                                      $‭99,912‬‬

Gross revenue  = 83,200 + 18,000 = $‭101,200‬

Gross Profit

Net Sales                                                      $‭99,912‬

Less: Cost of Goods sold                           <u> ($‭52,747‬)</u>

Gross Profit                                                  $‭‭47,165‬

Cost of goods sold

= 44,797 - 600 + 8,550

= $‭52,747‬

7 0
3 years ago
When a company strives to achieve lower overall costs than rivals and appeals to a broad spectrum of customers, it pursues Multi
dybincka [34]

Answer:

an overall low-cost provider strategy.

Explanation:

Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.

This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.

A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.

This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.

Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.

6 0
3 years ago
The ​short-run effect of consumers becoming more pessimistic will be for the
Bogdan [553]

Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.  

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.  

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

7 0
3 years ago
In 2007, the economy slipped in a recession that many called the worst since the Great Depression. This caused people to experie
Elis [28]

Answer:

an increase in equilibrium price and an indeterminate effect on equilibrium quantity.

Explanation:

An inferior good is a good whose demand increases when income falls and reduces when income rises.

If ramen is an inferior good, when income falls its demand would increase. This would lead to a rise in quantity and price.

An increase in the price of wheat would increase the cost of production of ramen. As a result, the supply of ramen would fall. Price would increase and supply would fall.

The combined effect would be an increase in equilibrium price but an indeterminate effect on equilibrium quantity.

I hope my answer helps you

3 0
3 years ago
Other questions:
  • Concord Corporation has a new product going on the market next year. The following data are projections for production and sales
    15·1 answer
  • Although china has a strong appreciation for tradition and its rich history of​ culture, it highly values enduring relationships
    13·2 answers
  • What seems to be the overall result of government laws on wages?
    10·1 answer
  • Joe​ Henry's machine shop uses 2 comma 480 brackets during the course of a year. These brackets are purchased from a supplier 90
    10·1 answer
  • What is the process of dividing a broad target market into subsets of consumers, businesses, or countries who have similar needs
    10·1 answer
  • The Fed is the most independent of all U.S. government agencies. What is the main difference between it and the other government
    15·1 answer
  • Your social media promotion can either narrowly target 50,000 users with an estimated click rate of 10% or broadly
    13·1 answer
  • Which economic system has no formal government ​
    5·1 answer
  • Which are the two best examples of long-term needs that people need to save for?
    7·1 answer
  • Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!