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MAXImum [283]
3 years ago
5

Gordon Chemicals Company acquires a delivery truck at a cost of $35,400 on January 1, 2017. The truck is expected to have a salv

age value of $3,900 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method. (Round answers to 0 decimal places, e.g. 125.) First Year Second Year Annual depreciation under straight-line method
Business
1 answer:
lara31 [8.8K]3 years ago
7 0

Answer: $7,875 per year for each of the first two years.

Explanation: The method to calculate the amount of depreciation using the straight line method is to subtract the salvage price from the purchase price and then divide it by the numbers of years in its useful life.

($35,400 - 3,900)/4 = $31.500 / 4 = $7,875 per year

$7,875 is the amount of depreciation for each year of the four years of the truck’s useful life.

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MaverickMaverick Co. budgets production of 120 comma 000120,000 units in the next year. MaverickMaverick​'s CFO expects that eac
Musya8 [376]

Answer:

B. $ 3 comma 600 comma 000$3,600,000

Explanation:

The total manufacturing cost of an entity maybe divided into two broad classes. These are direct and indirect cost. The indirect cost are also known as the overheads and may be further divided into fixed and variable overheads. The variable overheads may be given as a function of direct cost such as machine hours, direct labor hours etc.

Given that

Total units to be produced = 120,000

Time required to produce a unit = 10 hours

Hence total number of hours required

= 120,000 × 10

= 1,200,000 hours

Hourly wage rate = $12

If Factory overheads is applied to direct labor hours at $3 per​ hour

Factory overheads = $3 × 1,200,000

= $3,600,000

7 0
3 years ago
Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as
Scorpion4ik [409]

Answer:

Ist B

Explanation:

Ist b

8 0
3 years ago
A bond with a face value of $6,000 and an annual coupon rate of 12% convertible semiannually will mature in ten years for its fa
Alinara [238K]

Answer:

Premium is $2,677.95

The premium amortization on the 7th payment is $119

Explanation:

In order to arrive at the premium on the bond,it is necessary to compute the issuing price of the bond,which can be done using the pv formula in excel as shown below:

=-pv(rate,nper,pmt,fv)

rate is the semi-annual yield to maturity on the bond which is 6%/2=3%

nper is the number of coupon interest payable by the bond,which is 10 years multiplied by 2=20

pmt is the semi-annual coupon payable by the  bond i.e 12%/2*$6000=$360

fv is the face value of the bond which is $6,000

=-pv(3%,20,360,6000)

pv=$8,677.95  

premium=issue price -face value

premium=$$8,677.95-$6,000

premium=$2,677.95

The premium amortization is the excess of coupon payment  over the interest expense.

In the attached, I calculated the premium amortization on the 7th payment.

I started by taking the issue price of $8677.95 ,added interest expense at 3% semi-annually ,deducted the coupon payment of $360,thereby leaving the outstanding balance at end of the year.

Note that the premium amortization is the excess of coupon payment over interest expense as colored coded.

Download xlsx
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3 years ago
Which statement is true regarding Check No. - 409?
kakasveta [241]
What are the statements?
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Inflation is a decrease in the average price level in the economy.
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This is false. When inflation happens, prices go up in the economy.
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