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Vladimir79 [104]
3 years ago
7

On January 1, Year 1, Friedman Company purchased a truck that cost $41,000. The truck had an expected useful life of 100,000 mil

es over 8 years and an $8,000 salvage value. During Year 2, Friedman drove the truck 20,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2
Business
1 answer:
Brilliant_brown [7]3 years ago
4 0

Answer:

$6,600

Explanation:

The units-of-production depreciation expense = (miles driven in year 2 / total estimated miles) × (cost of asset - Salvage value)

(20,000 / 100,000) x ($41,000 - $8,000)

0.2 x $33,000 = $6,600

I hope my answer helps you

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Active changes in tax and spending by government intended to smooth out the business cycle are called ________, and changes in t
monitta

Answer:

The correct answer to the first fill in the blank is discretionary fiscal policy and answer to second fill in the blank is automatic stabilizers.

Explanation:

Discretionary fiscal policy is a policy that government uses to change its spending and taxes. The main objective of this policy is expansion or contraction of the economy depending upon the need. This policy is also called demand side policy , which government uses to influence the aggregate demand.

Automatic stabilizers are that type of fiscal policy which are designed in such a way , that it can offset fluctuations in a country's economic activity through the course of their normal operations without any additional authorization needed by government.

7 0
3 years ago
Grengens, a European chocolate manufacturer, received several complaints from customers about the quality of its product when it
Kay [80]

Answer:

Letter E is correct. <u>Product disapprobation.</u>

Explanation:

In this matter, we can say that the factor that probably dictated the adaptation of Greengens products in this scenario was the product's disapproval.

This failure of the chocolate company Greengens was due to some management error and analysis of the market in question. When entering an international market, the company must analyze a series of important variables for the product to be accepted by the local public, no matter how standardized the product is, there are some local characteristics that should not be disregarded, such as local values, culture , needs, tastes, etc., which means that an adaptation of a product or service is necessary for it to be actually accepted and consumed in a given country.

4 0
4 years ago
The Apple stock’s price is $112.92 on 8/1/15 and becomes $110.30 on 9/1/15. In August, Apple gives a dividend of $0.52 per share
ratelena [41]

Answer:

The holding period monthly return for Apple in August is <u>-2.00%</u>.

Explanation:

Holding period return (HPR) refers to total return that is received by an investor when he holds an asset or portfolio of assets over a period of time.

The holding period return is generally expressed as a percentage can be estimated using the following formula:

HPR = [Income + (P1 - Po)] / Po ....................... (1)

Where;

Income = Dividend = $0.52

P1 = End-of-period value = $110.30

Po = Initial value = $112.92

Substituting the values into equation (1), we have:

HPR = [$0.52 + ($110.30 - $112.92)] / $112.92

HPR = [$0.52 - $2.62] / $112.92

HPR = -$2.10 / $112.92

HPR = -0.02, or -2.00%

Therefore, the holding period monthly return for Apple in August is <u>-2.00%</u>.

6 0
3 years ago
Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this
Andre45 [30]

Answer:

A. The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.

Explanation:

due to the product being popular, the demand rises and the demand curve shifts to the right.

6 0
3 years ago
A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected stay constant through year 5
PIT_PIT [208]

Answer: $115998

Explanation:

Based on the information given, we can calculate the NOI from the 6th year which will be:

= $80,000 × (100% + 15%)

= $80,000 × 115%

= $80,000 × 1.15

= $92,000

Therefore, the net present value of the property based on the 10-year holding period and a discount rate of 9.5% will be:

= 80000(PVAF, 5 year) + 92000[PVAF,(10-5),9.5%] + 830000/(1.095)10-750000

= (80000 × 3.839) + (92000 × 2.439) + (830000 × 0.403) - 750000

= 307120 + 224388 + 334490 - 750000

= 865998 - 750000

= $115998

Therefore, the net present value is $115998

4 0
3 years ago
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