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Ket [755]
3 years ago
12

Better Chocolates has a new project that requires $838,000 of equipment. What is the depreciation in Year 6 of this project if t

he equipment is classified as seven-year property for MACRS purposes? The MACRS allowance percentages are as follows, commencing with year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.
Business
1 answer:
DIA [1.3K]3 years ago
4 0

Answer:

d. $74,749.60 ( depreciation allowance @ 8.92% )

Explanation:

Under Modified Accelerated Cost Recovery System the Office furniture and fixtures, agricultural machinery and equipment, any other property not associated with another class is classified as 7-years property.

These assets are depreciated as follows:

Year         Percentage Depreciate

  1                              14.29%

  2                             24.49%

  3                             17.49%

  4                             12.49%

  5                             8.93%

  6                             8.92%

  7                             8.93%

  8                             4.46%

In the Sixth year depreciation will be charged by 8.92%.

Asset Value = $838,000

Depreciation Allowance in 6th year = $838,000 x 8.92%

Depreciation Allowance in 6th year = $74749.60

*Option for the given Mcqs are missing and written as follows:

Select one:

a. $80,411.60

b. $74,833.40

c. $89,108.00

d. $74,749.60

e. $89,327.08

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last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable
Inga [223]

A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Present Yearly Net operating income (loss)

(Units * CM Per unit)-Fixed cost

Units Sales 415000|

[Selling Price Per Unit 70

\Variabel Expense Per unit 40|

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5 0
2 years ago
Why is it so difficult to correctly identify a new product or process as emerging technology?
Finger [1]

Answer:

Technology is defined by how people use scientific knowledge, and not only does scientific knowledge constantly change, but the way we use it is also constantly changing.

Emerging technologies refers to a new technology or technological innovations. The problem is that what can be considered new and how fast will it become obsolete? Our world is changing so fast, that current technology will be obsolete in just a few months, or maybe a year from now.

Because new technologies become old too fast, it is very difficult to identify them before they are no longer an innovation. Only those technologies that become mainstream can be clearly identified as emerging technologies, e.g. the iPhone was considered an emerging technology in 2007 and even though the first iPhone is obsolete now, it became mainstream technology.

5 0
3 years ago
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River Enterprises has ​$502 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $ 15 milli
Sedbober [7]

Answer:

The stock price would be higher by $7.37

Explanation:

Free cash flow to equity = 195 million with a growth rate of 2% in perpetuity

Value of equity = Free cash flow to equity ÷ (Ce -g) = 195 million ÷ (13% - 2%)

= 190 ÷ 0.11 = $1,772,727,272.73 = $1,773 million

If growth rate is 3%, value of equity = 195 ÷ (13%-3%) = 195 ÷ 0.1 = $1,950  million

a. Value of stock = (1,773 + 15) million ÷ 22 = $81.27

b. Value of stock with 3% = 1,950 ÷ 22 = $88.64

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4 0
3 years ago
According to lawrence and lorsch, the stability of an organization's environment determine(s) the degree of ____.
Paul [167]
<span>According to Lawrence and Lorsch, the stability of an organization's environment determine(s) the degree of differentiation or integration that is necessary. 

Lawrence and Lorsch developed the contingency theory which involves organizations and changes in the environment. They watch how organizations change and perform based on what is changing around them and then how they adapt to the change. 
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8 0
3 years ago
3. Coarse chopping is usually used for vegetables that will be
Paraphin [41]

Option D is the correct answer. Stewed.

Vegetables can be chopped coarsely when Stew has to cook. Stew is a food that is cooked slowly in liquid in a closed pan.

So when coarse vegetables are cooked on medium flame in the liquid with the lid closed, they are dissolved properly. And there is no need to chop them thin.

3 0
3 years ago
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