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iren2701 [21]
3 years ago
12

Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salv

age value of $2,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Business
1 answer:
finlep [7]3 years ago
5 0

Answer:

First Year Depreciation: 12,400

Second Year Depreciation: 7,440

Explanation:

straight-line depreciation \times 2 = \frac{1}{5} \times 2 = \frac{2}{5}

\left[\begin{array}{ccccc}Year&Beginning\:Book&Dep \:Expense&Acc\:Dep&Ending\:Book\\0&-&-&-&31000\\1&31000&12400&12400&18600\\2&18600&7440&19840&11160\\3&11160&4464&24304&6696\\4&6696&2678.4&26982.4&4017.6\\5&4017.6&2017.6&29000&2000\end{array}\right]

To calculate each period depreciation we multiply the book value by the double-declining rate of 2/5

At the last year, you will depreciate until salvage value is reached.

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Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of p
soldier1979 [14.2K]

Answer:

perfectly price discriminating.

Explanation:

here are the options to this question :

not maximizing its profit.

imperfectly price discriminating.

not price discriminating.

perfectly price discriminating.

perfect price discrimination also known as first-degree discrimination is when a seller sells his product at the maximum possible price for each unit consumed. Due to the price variance, the seller captures all available consumer surplus.

A monopoly is when there is only one firm operating in an industry.

4 0
3 years ago
Roberto consumes coke exclusively. he claims that there is a clear taste difference and that competing brands of cola leave an u
VikaD [51]
The answer to the question above is "brand names cause consumers to be more sensitive to product differences" based on the result of Roberto's taste test. In the blind test, Roberto did not feel the unsavory flavor from the generic store-coke and he prefers that generic store-coke. This test proves that Roberto's taste is distracted by the brand.
5 0
3 years ago
Alternative A Alternative B Materials costs $28,000 $64,000 Processing costs $34,000 $34,000 Equipment rental $11,000 $28,500 Oc
stira [4]

Answer:

$61,600

Explanation:

The differential cost analysis is an analysis in which the costs of two alternatives is taken into consideration and based on those costs it is decided that which alternative is suitable in terms of increment that has been lost by other alternative. That is why it is also known as alternative cost. To calculate the differential cost, it is simple, subtract the cost of 1st alternative from the 2nd and you will get the differential cost. Basically this tool helps in decision making when deciding to choose between two alternatives.

In the question we have been asked to find the differential cost of Alternative B over Alternative A, including all of the relevant costs. To do that first we need to find the differential costs among all the relevant costs and then sum all the differences to find the differential cost of Alternative B over Alternative A.

(a)

Differential Cost of Alternative B over Alternative A is;

Materials costs =  $64,000 - $28,000 = $36,000

Processing costs =  $34,000 - $34,000 = $0

Equipment rental =  $28,500 - $11,000 = $17,500

Occupancy costs = $27,600 - $19,500 = $8,100

(b)

Now the Total Cost which is Differential Cost of Alternative B over Alternative A is;

$36,000 + $0 + $17,500 + $8,100

$61,600

6 0
3 years ago
Economies of scale exist when the long run average cost curve:
IgorLugansk [536]

A. falls is the best option

7 0
3 years ago
According to this warranty, if the camera has had its serial number removed, would it be repaired?
bezimeni [28]
No, It would not be because it does not have a serial number.
4 0
3 years ago
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