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kakasveta [241]
3 years ago
6

United Trans Service jet costs $ 55.000.000 and is expected to fly 500.000.000 miles during its 8​-year life. Residual value is

expected to be zero because the plane was used when acquired. If the plane travels 50.000.000 miles the first​ year, how much depreciation should United Trans Service record under the​ units-of-production method? ​(Round the depreciation per unit to two decimal​ places.)
Business
1 answer:
prohojiy [21]3 years ago
5 0

Answer:

Depreciation for first year = $5,500.00

Explanation:

Cost of Jet = $55,000

It is expected to fly 500,000 miles in 8 years.

There is no salvage value.

Now, since the capacity in miles is provided the depreciation expense shall be based on such capacity only, that is units of production method and straight line method shall not be followed until specified.

Provided plane travels 50,000 miles in current year

Depreciation rate = $55,000/500,000 miles = $0.11 per mile

Depreciation for current year = $0.11 X 50,000 miles = $5,500.00

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Consider two companies in a world with no taxes that are alike except in borrowing choices. Company 1 has no debt​ financing, an
Alekssandra [29.7K]

Answer:

Company 1 = $2 per share

Company 2 = $2.50 per share

Explanation:

Given that,

EBIT for both companies = $1,000

Number of shares outstanding for company 1 = 500

Number of shares outstanding for company 2 = 300

Interest paid by company 2 = $250

EPS for company 1:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $0) ÷ 500

= $2 per share

EPS for company 2:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $250) ÷ 300

= $750 ÷ 300

= $2.50 per share

6 0
3 years ago
Food with a use by date of July 10 should be stored in front of food dated June 29, in front of food dated July 9, behind food d
Vinvika [58]
This food should be displayed behind food dated June 27th so that the food which will expire sooner will hopefully be chosen  by the shopper to finish it and leave the food with a longer shelf life for later since it has a later expiry date.
6 0
4 years ago
Read 2 more answers
The total amount of depreciation recorded against an asset over the entire time the asset has been owned: Multiple Choice Is sho
Anettt [7]

Answer:

Is referred to as accumulated depreciation.

Explanation:

Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.

The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.

In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.

Hence, the total amount of depreciation recorded against an asset over the entire time the asset has been owned is referred to as accumulated depreciation.

6 0
3 years ago
In 2016, David Hay started his own business, Hays Gardening and Landscapes. David was previously an employer of another business
Vitek1552 [10]

Answer: B. Loss of earnings from employment

Explanation:

The opportunity cost of choosing a course of action is the returns that you would have earned from choosing the next best action.

David was employed and yet decided to quit that job and start a business. The next best thing he could have been doing was working which means that the opportunity cost was the returns from working which was his salary.

In deciding to open up his own businesses, he had to forego the opportunity costs which meant that he lost the earnings from that his employment.

5 0
3 years ago
Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase pri
jolli1 [7]

Answer:

$6,000

Explanation:

Purchase price = $75,000

Remaining life = 75 months

The amortization amount for each month (Am) is given by  the total purchase price divided by the remaining life of the copyright.

A_m=\frac{\$75,000}{75}=\$1,000\ per\ month\\

Since the purchase was made in July, there are 6 months left in the current year. Therefore, Jorge's total amortization amount during the current year is:

A=6*\$1,000 = \$6,000

7 0
3 years ago
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