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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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KengaRu [80]

Answer:

3.34 times

Explanation:

Ginger incorporation has a market valu of equity of $710,000

The debt is $227,800

Cash is $45,600

EBIT is $102,800

The first step is to find the enterprise value

= market capitalization + debt -cash

= $710,000 +$227,800 - $45,600

= $937,800-$45,600

= $892,200

The EBITDA can be calculated as follows

= EBIT + depreciation and amortization

= $102,800 + $164,600

= $267,400

Therefore the enterprise value-EBITDA can be calculated as follows

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3 years ago
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Answer:

I think it's C

Explanation:

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3 years ago
If a firm goes out of business because of negative economic​ profits, its books
Rainbow [258]

Answer:

The answer is B.

Explanation:

8 0
3 years ago
rawford Trucking plans to dispose of two trucks in 2022. They sell the first truck on January 2 and the second truck on July 9.
MakcuM [25]

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Explanation:

When disposing of fixed assets such as vehicles, depreciation has to be charged on them to see their Net Book Value.

Companies usually depreciate their vehicles on a yearly basis in accordance with the end of their fiscal year. This company therefore most likely depreciates on December 31.

The first truck is sold 2 days after this Depreciation so there is no need to add more depreciation to it.

However the second truck on the other hand was sold 6 months later. Depreciation needs to charged on this substantial period but since it was not for the full year, a partial one needs to be charged.

5 0
3 years ago
A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real
dmitriy555 [2]

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

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