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expeople1 [14]
3 years ago
9

Swift Company purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated use

ful life of six years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2013, Swift determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no salvage. An accounting change was made in 2013 to reflect this additional information. What is the amount of depreciation expense on this machine that should be charged in Swift's income statement for the year ended December 31, 2013
Business
1 answer:
zalisa [80]3 years ago
3 0

Answer:

Swift Company should charge depreciation expense of $55,556 to income statement for the year ended December 31, 2013.

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($500,000 - 0) / 6 years = $83,333 yearly depreciation expense.

Accumulated depreciation as at end of 20212 = $83,333 x 2 = $166,667

Net book value (NBV) becomes $500,000 - $166,667 = $333,333

New depreciation is ($333,333 - $0) / 6 years = $55,556 yearly depreciation expenses from 2013 onward.

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Suppose the government enacts a price floor on milk, which leads to a surplus in the market. How will the government then attemp
Anna [14]

Answer:

Price Floor led Excess Supply can be solved by : Preserving goods Buffer Stock ; or processing goods to increase their shelf life (in case of perishable goods like Milk)

Explanation:

Unregulated markets are at equilibrium where : market demand , market supply are equal ; and downward sloping demand curve , upward sloping supply curve intersect.

Price Floor is minimum mandated price set by government, below which a good can't be sold in the market. It is usually set above equilibrium price, to protect interest of sellers. Example : Minimum Support Price as minimum agricultural  goods price to protect interest of farmers, Given Milk Price floor case.

Price Floor creates artificially higher prices ; so increases supply, decreases supply & hence creates Excess Supply. Government can solve this excess supply by preserving stock supply for contingent times , eg -  maintaining buffer stock. If the good is of perishable nature, as given milk case : it should be processed further to increase its shelf life, eg - cheese, such that the stock supply can be released at a slower pace.

3 0
3 years ago
Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on
prisoha [69]

Answer:

Alternation ranking method.

Explanation:

Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Paula's name as the best-performing employee of the group. He then circles Erma's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Tony is using the alternation ranking method.

This method basically ranks employees from the very best to the worst based on a particular trait. Choosing the highest down to the lowest until every one of them are ranked.

6 0
3 years ago
Consumer surplus Select one: a. is the amount of a good that a consumer can buy at a price below equilibrium price. b. is the am
Burka [1]

Answer:

b. is the amount a consumer is willing to pay minus the amount the consumer actually pays.

Explanation:

Consumer surplus = willingness to pay less price of the good.

Let assume a student is willing to pay $30 for a book and the price of the book is $15. The student's consumer surplus is $30 - $15 = $15

I hope my answer helps you

8 0
3 years ago
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $11,500 price, but financing
aksik [14]

Explanation:

I = Prt

I = (10000)(.11)(4) = $4400

Total Cost = Down Payment + Principal Borrowed + Interest

Total Cost = 2000 + 8000 + 4400

= $14,400

Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments

Monthly Payment = (10,000 + 4400) / 48

= $300

APR= (2 × n × I) / [P × (N + 1)]

APR = (2 × 12 × 4400) / [10,000 × (48+1)]

= 21.55%

3 0
3 years ago
The following events took place at a manufacturing company for the current year:
PilotLPTM [1.2K]

Answer: $25,369.50

Explanation:

GIVEN THE FOLLOWING :

Purchased direct material = $97,000

(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.

(3) Other manufacturing overhead was $109,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

Ending work in process inventory is calculated by;

(Beginning inventory + 0.8(direct material purchased) + direct Labor + (indirect labor + other manufacturing overhead)) × percentage Work in process

($0 + (0.8×97000) + 58000 + (15600+109000))×0.65

=($0 + $77,600 + $58,000 + 124600)×0.65 = $169,130

Ending WIP Inventory = (100-85)% × $169,130

0.15 × $169,130 = $25,369.50

6 0
3 years ago
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