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steposvetlana [31]
4 years ago
13

Cycle Inc. purchased equipment that will help diagnose problems with engines. The equipment cost $200,000 on January 1, 2019 and

a residual value of $10,000 was anticipated, with a useful life of 5 years. In 2019, Cycle Inc. has a gross profit of $400,000 and operating expenses of $180,000. Cycle Inc. has a tax rate of 30%.
Required:

1. Compute the Depreciation Expense for 2019 under both the straight-line and double-declining balance depreciation methods.
2. What is the net cash saved if the accelerated depreciation method is used in 2019?
Business
1 answer:
Burka [1]4 years ago
3 0

Answer:

Explanation:

Cost of equipment - $200,000

Residual value  $ $10,000

Depreciable amount - ($200000-$10000) =190000

Straight line depreciation rate = 1/5*100 = 20%

Depreciation = 190000*20%=38,000

Double declining balance = 2*20%*200000 =80000

Income statement (straight Line )                 Double declining

Gross profit                    $400,000                  $400,000

Operating expense       $180,000                    $180,000

Depreciation                   $38,000                      $80000

PBIT                                  $182,000                    $140,000

Tax (30%)                          $54600                      $ 42000

Net profit                          $127400                      $98,000

2)As depreciation is a non cash expenses , using different types of depreciation does not yield any cash savings.

It can only yield differences on the profit as seen in the income statement

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Break-Even Sales
Licemer1 [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Currently, the unit selling price of a product is $125, the unit variable cost is $105, and the total fixed costs are $460,000. A proposal is being evaluated to increase the unit selling price to $130.

Break-even point= fixed costs/ contribution margin

A) Break-even point= 460,000/(125-105)= 23,000 units

B) Break-even point= 460,000/ (130 - 105)= 18,400 units

3 0
3 years ago
When a seller makes a counter-offer what is the essence of such an action?
GrogVix [38]

Answer:

The correct answer is The seller rejects the buyer's offer.

Explanation:

A counter offer more often than not expresses that the seller will acknowledge the buyer's offer. Generally, the seller is dismissing the buyer's unique offer by making a counter offer.

One thought on the issue of offer and acknowledgment is whether the offer or counteroffer was in truth acknowledged before its expiration. A counteroffer is a dismissal and another offer.  

A seller who is in receipt of an offer from a buyer can't at first counteroffer, and if that fails to work, then accept the original offer. This is so in light of the fact that, by law, a counteroffer is a dismissal of the main offer and the creation of another offer. The old offer from the buyer is dismissed and "gone" as of the creation of a counteroffer by the seller.

8 0
4 years ago
What key factor kept the copernican theory from being widely accepted at first?
Amiraneli [1.4K]
The key factor that kept the Copernican is that Roman Catholic Church had decided that earth was the center of the universe and contrary opinions were heresy. The Copernican also proposed that a heliocentric system had decided the the Earth is the center of the universe and all of the contrary opinions regarding this was false.
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3 years ago
Occasionally, _________________ may lead to pure monopoly; in other market conditions, they may limit competition ______________
makvit [3.9K]

Occasionally, barriers to entry may lead to pure monopoly; in other market conditions, they may limit competition to a few oligopoly firms

<h3>Do barriers to entry exist in a pure monopoly?</h3>

Due to entrance restrictions that deter prospective rivals, firms acquire monopolistic power. Barriers to entry, or conditions that make it difficult or impossible for potential competitors to participate in the market, give monopolies their market strength.

The four main elements of monopoly are: (1) a single business controlling the entire output of a market; (2) a distinctive product; (3) barriers to admission and departure from the industry; and, frequently (4) specialised knowledge about production methods that are not available to other potential producers.

Learn more about monopoly refer

brainly.com/question/13276400

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4 0
2 years ago
According to Wallach, what is short-termism, and why is it a problem?
lutik1710 [3]

Answer:

<em><u>short-termism </u></em>

Is the acting upon short term vision of the needs and problems that must be addressed. It is a problem because the vision that is important is the Long path vision.

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Is a concept that combines long term vision and goal oriented. Wallach develop that concept as he did not find a term that frame what is intended in the long run that was goal oriented.

<em><u>Briefly discuss each of the three ways of thinking that Wallach describes.  </u></em>

Transgenerational thinking: Thinking the impact of your actions in the future generations to come.  

Futures thinking: The future is not related only with better technology but with how will human relationships, moral, art and feelings like compassion will evolve.

Telos thinking: This is an invitation to think having in mind what is the "ultimate aim" of our actions as little of they might be. It is important to raise the question: how this action that I am doing now will impact or change the future in 20,50 or 100 years to come.

<em><u>How does Wallach relate the future to a part of speech? </u></em>

Wallach make a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” an Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what is the vision of what a dream must looks like

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