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
docker41 [41]
3 years ago
15

On January 1, Year 1 Missouri Co. purchased a truck that cost $49,000. The truck had an expected useful life of 10 years and a $

5,000 salvage value. Missouri uses the double declining-balance method. What is the amount of depreciation expense recognized in Year 2?
Business
1 answer:
serg [7]3 years ago
8 0

Answer:

The amount of depreciation expense recognized in Year 2= $7,800.

Explanation:

<u>Determine the depreciation base</u>

The depreciation base = Acquisition cost - Residual/Salvage value.

The depreciation base = 49,000 - 5,000

The depreciation base = $44,000.

<u>Determining the depreciation rate</u>

The depreciation rate = depreciation base / Useful life

The depreciation rate = 44,000/10

The depreciation rate = $ 4,400.

<u>To determine depreciation % rate </u>

Depreciation  % rate = (The depreciation rate  / depreciation base) × 100

Depreciation  % rate = (4,400 / 44,000) × 100

Depreciation % rate = 10 %

But since Missouri Co. uses double declining balance method of depreciation, the correct depreciation % rate is 10 × 2 = 20%

<u>Determining the depreciation expense for year 2</u>

Year 2 depreciation expense is computed as follows:

(Acquisition cost - year 1 depreciation expense) × Depreciation % rate

Depreciation expense for year 2 is computed as:

Acquisition cost × Depreciation % rate = 49,000 × 20%

Year 1 depreciation expense = $9,800.

Therefore year 2 depreciation expense = (49,000  - 9,800.) × 20%

Therefore year 2 depreciation expense = $ 7,800.

You might be interested in
As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of ________ advertisi
Nutka1998 [239]

Answer:

The answer is reminder

Explanation:

Reminder advertising is used by a known brand or firm to remind or to make them not to forget a product. Sometimes, additional benefits can be added to an already known product. Reminder advertising is essential here.

Reminder advertising is used to elongate the life-cycle of a product. Products in their maturity stage should be given additional benefits to be able to make them competitive.

4 0
3 years ago
Explain in your own words what a deposit is, no copying or pasting please.
Elena L [17]
a deposit is where you going to put money in the bank yeah like we just go put something in somewhere that's the definition of deposit .
6 0
3 years ago
Read 2 more answers
list four strategies that individuals, families, businesses, and government apply when making financial decisions.
Agata [3.3K]

While making financial decision one should keep in mind the Cost-benefit analysis, marginal analysis, trade-offs, and opportunity costs.

<h3>What are the strategies for making better fianancial decision?</h3>

The success of your firm will depend on the wiser financial decisions you make, among other things. Financial errors can have devastating repercussions and seriously ruin your business venture. You must be familiar with your company's financial data in order to develop stronger financial decision-making techniques.

1. Consistently Use Reliable Accounts

2. Invest in financial education

3. Regularly compare cash flow forecasts to actuals

4. Ensure That Major Initiatives' Financial Impact Is Always Calculated

5. Have Your Team Participate In Decision-Making

6. Consistently monitor financial performance

Learn more about the Business finance with the help of the given link:

brainly.com/question/10024737

#SPJ4

6 0
2 years ago
a report must be sent promptly to FINRA if a registered employee of a member firm for all of the following EXCEPT: A has violate
Gnom [1K]

Answer:

D

is ticketed for careless driving

Explanation:

FINRA Rule 4530 says one can report

each member of the firm promptly to FINRA, within 30 calendar days,

6 0
3 years ago
Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently. However, none of the pote
zaharov [31]

Answer: The presence of asymmetric information

                                               

Explanation:  In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.

Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.

In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.

5 0
3 years ago
Other questions:
  • (a) What is the present value of $34,900 due 9 periods from now, discounted at 9%? (Round answer to 2 decimal places, e.g. 25.25
    8·1 answer
  • Tara deposits money into an account with a nominal interest rate of 6 percent. She expects inflation to be 2 percent Her tax rat
    8·1 answer
  • You are the pilot of a plane. There are 10 men with shirts off, 7 with shirts, 3 babys, 12 old ladys, 3 kids, and 24 mothers. Wh
    15·2 answers
  • Which of the following is considered to be a "super tool" or tool that has high use and high potential for improving project suc
    5·1 answer
  • Many organizations are adapting to the environment by developing more of a(n) _____ relationship rather than a(n) _____ relation
    8·1 answer
  • The monetary inflation needed to relieve the social and economic hardships of the late nineteenth century eventually came as a r
    9·1 answer
  • If u want to use a tv show name as ur brand name would it be illegal ?? plz answer asap
    15·1 answer
  • A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 5.8%. It will mature in 15 years and the inter
    15·1 answer
  • The table shows an indifference schedule for several combinations of x and y. Approximately how much of y is the consumer willin
    11·1 answer
  • How can manage my budget?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!