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
Marianna [84]
3 years ago
10

On January​ 1, 2018,​ Jordan, Inc. acquired a machine for $ 1 comma 040 comma 000. The estimated useful life of the asset is fiv

e years. Residual value at the end of five years is estimated to be $ 55 comma 000. Calculate the depreciation expense per year using the straightminusline method.
Business
2 answers:
Keith_Richards [23]3 years ago
5 0

Answer:

$197,000

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically, using the straight line method , the annual depreciation

= (cost - salvage value)/estimated useful life

= ($1,040,000 - $55,000)/5

= $197,000

romanna [79]3 years ago
4 0

Answer:

Annual depreciation= $197,000

Explanation:

Giving the following information:

Purchasing price= $1,040,000

Residual value= $55,000

Useful life in years= 5

<u>Under the straight-line method, the annual depreciation is the same during the useful life of the machine. To calculate the annual depreciation, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (1,040,000 - 55,000)/5= $197,000

You might be interested in
Aztic Inc., a manufacturer of sports goods, plans to expand its operations to various other countries. During market research, i
RSB [31]

Answer: demographic makeup

                         

Explanation:  Demographics is a population analysis based on criteria like age, ethnicity, and gender. Demographic data relates to systematically articulated social economic-economic statistics, including jobs, schooling, wages, marriage rates, rates of births and deaths, and much more.

Governments, companies, and NGOs use surveys to learn much more about the dynamics of a community for many reasons, including policy development and research on the economic market. Demographic information is collected to create a profile for the client base of the company for company's marketing objectives.

Thus, from the above we can conclude that the given case depicts demographic makeup.

8 0
3 years ago
Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the
Lana71 [14]

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

6 0
3 years ago
Reading from left to right, which list shows the tax types that proportionally increase with a rise in income?
Murrr4er [49]

Answer:

Regressive, proportional, progressive

Explanation:

There are three main tax categories: regressive, proportional, and progressive.

Regressive Tax

Regressive taxes are type f tax accessed as a percentage of the value of an asset purchased or possessed. Under this system, low-income earners tend to pay a higher amount compared to high income earners because it has no correlation with what the taxpayer earns or their income level.

Proportional Tax

In a proportional tax system, everyone irrespective of their income pay the same rate. This tax system affects everyone equally.

Progressive Tax

A progressive tax has it name implies is progressive in nature.The tax rate increases as the income level of the tax payer increases. Therefore high-income earning individuals pay more than low-income earning individuals

3 0
3 years ago
As of 2018, U.S. tax law limits the tax deduction for interest payments to 30 percent of: Multiple Choice
frutty [35]

Answer:

EBIT

Explanation:

As of 2018 US Tax law limits the tax deduction for interest payments to 30 percent of EBIT.

<em>The Office of Tax Policy develops and implements tax policies and programs, reviews regulations and rulings to administer the Internal Revenue Code.</em>

<em />

4 0
3 years ago
What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and
Gala2k [10]

Answer:

Current Price of the Share Stock is $ 37.86 (D)

Explanation:

Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).

Where;  Po ⇒Market Value excluding any dividend currently payable

            D1= Do(1+g)⇒Expected dividend in one year's time

            Ke =Required rate of return by shareholders

             g= Dividend growth rate

<u>Calculation</u>

D1 = 5(1+0.06)= $5.3

Hence, Po= 5.3/(0.20-0.06)

            Po=$37.86

The share price is expected to reflect the future expected stream of income i.e  dividends and capital gains ,discounted at an appropriate cost of capital.

Some of the assumptions of dividend valuation method include but not limited to the following:

- it assumed that investors act rationality and in the same way ;

-the dividend either show growth or no growth;

-the discount rate used exceeds the dividend growth rate.

5 0
3 years ago
Other questions:
  • A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to fini
    7·1 answer
  • MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
    5·1 answer
  • Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
    10·1 answer
  • At the stage, the product reaches its highest point of demand and sales
    14·1 answer
  • Cullumber Company reports the following information (in millions) during a recent year: net sales, $12,105.0; net earnings, $355
    9·1 answer
  • Ursus, Inc., is considering a project that would have a ten-year life and would require a $3,330,000 investment in equipment. At
    15·1 answer
  • Which of the following attributes was not cited as an important dimension of an effective measuring system for marketing?
    11·1 answer
  • What focuses on how individual users logically access information to meet their own particular business needs?
    7·1 answer
  • Which statement does not describe a difference between government and household budgets? In the short term, economists would exp
    14·1 answer
  • Bob manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of ti
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!