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Tomtit [17]
4 years ago
15

Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a co

st of $101,000. Over its 4-year useful life, the bus is expected to be driven 186,000 miles. Salvage value is expected to be $8,000.
Business
1 answer:
Arte-miy333 [17]4 years ago
6 0

Answer:

Whippet Bus lines should depreciate the bus $0.50 for every mile driven.

Explanation:

To determine the amount of money that Whippet Bus should depreciate for every mile driven, we first must find the total depreciable value of the bus:

depreciable value = purchase cost - salvage value = $101,000 - $8,000 = $93,000

Now we divide the depreciable value by the expected useful life of the bus measured in miles:

cost per unit of activity = $93,000 / 186,000 miles = $0.50 per mile

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The option that is not among the Porter's five forces is disruptive technologies.

<h3>What are the Porter's five forces?</h3>

The Porter's five forces is used to analyse the competitive forces of firms operating in a particular industry.

The Porter's five forces are:

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To learn more about the porter's five forces, please check: brainly.com/question/5183977

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2 years ago
You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly -0.7. Due to the econo
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Answer:

The purchase should stay the same or even increase its number.

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3 years ago
The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100
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Answer:

It should be recommended that the customer should sell long.

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The right step to take is by selling the long position that has a new higher market price.

Therefore, it should be recommended that the customer should sell long.

Note that to sell long implies that stocks or any other financial investment instrument are purchased now for the purpose of selling them at a higher future price in order to make a profit.

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Punitive damages are money damages awarded to punish the defendant for gross and wanton negligence and to deter future wrongdoing.

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