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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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The weighted-average cost of capital for a firm with a 65/35 debt/equity split, 8% pre-tax cost of debt, 15% cost of equity, and
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Answer:

weighted-average cost of capital is 11.57 %

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by providers of long term permanent sources of capital.

WACC = Weight of Equity × Cost of Equity + Weight of Debt × After tax cost of debt.

where,

After tax cost of debt = interest × ( 1 - tax rate)

                                     = 8% × (1 - 0.35)

                                     = 5.20 %

Therefore,

WACC = 0.65 × 15% + 0.35 × 5.20 %

           = 11.57 %

8 0
3 years ago
Why is real estate often a great investment?
alexira [117]
I think it’s B .........
7 0
2 years ago
Which of the following statements about goods is FALSE? Question 1 options:
anyanavicka [17]

Answer:

C) Goods-producing firms focus on the flow of people, information, and services.

Explanation:

Goods-producing firms not necessarily needs to focus on the flow of people, information, and services, what is true is that firms use physical inventory because it's necessary to have available products to sale.

The facilities must be located close to raw material, suppliers, and labores if not the company will see the cost of sale increased by logistic costs.

Also it's important to have employees with strong technical and production skills so the company can get well products at the production line.

8 0
3 years ago
John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), o
otez555 [7]

Answer: $40,710

Explanation:

John's annual compensation includes his actual annual salary as well as the various payments that Heinlein Hillclimbers makes on his behalf.

His total annual compensation is:

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= 26,500 + 900 + 1,800 + 360 + 600 + 530 + 5,250 + 4,770

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2 years ago
In an economy where the money supply and aggregate demand have been decreased by the central bank, you know that the central ban
natima [27]

In an economy where the money supply and aggregate demand have been decreased by the central bank, you know that the central bank is using a contractionary monetary policy.

In an economy, changes in the money supply leads to changes in aggregate demand. An increase in the money supply increases aggregate demand and a decrease in the money supply decreases aggregate demand.

When a central bank takes action in order to decrease the money supply and increase the interest rate, it is following a contractionary monetary policy. Thus, the central bank requires Southern to hold 10% of deposits as reserves.

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To learn more about aggregate demand here:

brainly.com/question/24319248

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4 0
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