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
inessss [21]
3 years ago
15

Clearcopy, a printing company, acquired a new press on January 1, 2019. The press cost $173,400 and had an expected life of 8 ye

ars or 4,500,000 pages and an expected residual value of $15,000. Clearcopy printed 675,000 pages in 2019.
Required:
1. Compute 2019 depreciation expense using the:
a. Straight-line method.
b. Double-declining-balance method.
c. Units-of-production method.
2. What is the book value of the machine at the end of 2019 under each method?
Business
1 answer:
Andrei [34K]3 years ago
4 0

Answer:

Straight-line method

Depreciation expense: $19,800

Book value : $153,600

b. Double-declining-balance method. 

Depreciation expense: $43,350

Book value : $130,050

c. Units-of-production method

Depreciation expense: $23,760

Book value : $149,640

Explanation:

Straight line depreciation expense = (cost of asset - residual value) / useful life

($173,400 - $15,000) / 8 = $19,800

The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset.

So, deprecation expense in 2009 would be

$19,800.

Book value = Cost of asset - deprecation expense

$173,400 - $19,800 = $153,600

Depreciation expense using the Double declining method = depreciation factor × cost of asset

Deprecation factor = 2 x (1/useful life) = 2 x (1/8) = 0.25

0.25 x $173,400 = $43,350

Book value = $173,400 - $43,350 = $130,050

Deprecation expense using the unit of production method = deprecation factor × (cost of asset - Salvage value)

Depreciation factor = Total pages printed in 2009 / total pages that can be printed by the machine

675,000 /4,500,000 = 0.15

0.15 x ($173,400 - $15,000) = $23,760

Book value at the end of 2009 = $173,400 - $23,760 = $149,640

I hope my answer helps you

You might be interested in
You are part of a sales group that has been asked to give you a presentation.
Archy [21]
Not B because i just got it wrong!!
7 0
3 years ago
Read 2 more answers
Restaurant A uses 60 bags of potatoes each month. The potatoes are purchased from a supplier for a price of $80 per bag and an o
iVinArrow [24]

Answer:

D. Decreases from 30 to 28.5 bags

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Carrying cost is $80 × 40% = $32

Annual demand = 60 bags × 12 months = 720 bag

And, the ordering cost is $20 per order

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{720}\times \text{\$20}}{\text{\$32}}}

= 30 bags

Now the demand is decreased by 10% So, the annual demand would be

= (60 - 6) × 12 months

= 54 bags × 12 months

= 648 bags

The other things will remain the same  

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{648}\times \text{\$20}}{\text{\$32}}}

= 28.46 bags

4 0
3 years ago
Paper Clip Company sells office supplies. The following information summarizes the​ company's operating activities for the​ year
marin [14]

Answer:

$41,400

Explanation:

Calculation for Paper Clip Company Operating income

OPERATING NET INCOME for Paper Clip Company

Sales revenue 164,800

Less: Purchases of merchandise (89,900)

Utilities for the store (9,600)

Sales commission (10,100)

Rent for store (13,800)

Operating net income $41,400

Therefore the Operating net income will be $41,400

3 0
3 years ago
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can
Gre4nikov [31]

Answer:

a.Georgeland has an absolute but not a comparative advantage in producing clothing.

Explanation:

A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.

Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .

The opportunity cost of georgeland in producing clothes = 36 / 18=2

The opportunity cost of georgeland producing food = 18 / 36 = 0.5

For Alland,

the opportunity cost of producing clothes = 32 / 16= 2

the opportunity cost of producing food = 16 / 32 = 0.5

Neither countries don't have a comparative advantage in the production of either clothes of food bedside they have the same opportunity costs in both activities.

I hope my answer helps you

7 0
3 years ago
Which of the following are consistent with the efficient markets hypothesis? Check all that apply. You should spend several hour
denis23 [38]

Answer:

1. Stock markets reflect all available information about the value of stocks AND

2. Changes in stock prices are impossible to predict.

Explanation:

The characteristics that are consistent with the efficient markets hypothesis are that

1. Stock markets reflect all available information about the value of stocks

<em>By definition efficient markets are those whose asset prices reflect all available information.</em>

2. Changes in stock prices are impossible to predict.

<em>The efficient market hypothesis has been described as a backbreaker for forecasters. In its crudest form it effectively says that the returns from speculative assets, are </em><em><u>unforecastable</u></em><em>.</em>

3 0
3 years ago
Other questions:
  • Rayya Co. purchases a machine for $159,600 on January 1, 2019. Straight-line depreciation is taken each year for four years assu
    14·1 answer
  • What are some specific liquids that have less than 80 percent water?
    10·1 answer
  • Beyond redesigning the nature of the work itself, and involving employees in decisions, approach to making the work environment
    11·1 answer
  • Louise owned a house next to Robert's house. Robert made a contract with Midcity Painters to paint his house. The painters arriv
    9·1 answer
  • At Tyson Foods, Lily serves as the point person who guides everyone in the firm towards ethical actions. Lily most likely serves
    5·1 answer
  • The global capital market limits the opportunity for businesses and individuals to build a diverse financial portfolio.
    15·1 answer
  • A 10-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,010. The bond c
    6·2 answers
  • Help if you can thank you
    5·1 answer
  • Pls help me and thank you
    9·2 answers
  • Which of the following actions will help limit the access to your network?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!