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Wewaii [24]
3 years ago
14

A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life

. How would using the straight-line method of depreciation instead of the double-declining balance method of depreciation affect a gain or loss on the sale of the plant asset?
A) A gain would be greater or a loss would be less using straight-line depreciation.
B) A gain would be less or a loss would be greater using straight-line depreciation.
C) A gain would be less or a loss would be less using straight-line depreciation.
D) Neither the gain or loss would be different using straight-line depreciation instead of double-declining-balance method.
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

B) A gain would be less or a loss would be greater using straight-line depreciation.

Explanation:

In straight line method of depreciation there is a fixed amount of depreciation,  and in double declining method the rate is double of straight line method,

Let us take an example,

Cost of asset = $500,000

Selling price at end of 2nd year = $300,000

Straight line depreciation = $100,000 for each year i.e. $500,000/5

Double declining method rate = ($100,000/$500,000) \times 100 \times 2 = 40%

Therefore value at end of second year

Straight line = $500,000 - ($100,000 \times 2 ) = $300,000

Double Declining method = ($500,000 -40%) - 40% = $180,000

In case of sale at $300,000

Profit shall be

Straight line = $300,000 - $300,000 = 0

Double Declining = $300,000 - $180,000 = $120,000

Now, there will be more profit in double declining that is gain is less in straight line and losses would be greater in straight line thus statement B is correct.

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Units of Labor Quantity of Output Marginal Revenue
lora16 [44]

Answer:

$7,650

Explanation:

Calculation for the marginal revenue product of the fifth unit of labor

Using this formula

Fifth unit of Labor marginal revenue product=Fifth Quantity of Output*Marginal Revenue

Let plug in the formula

Fifth unit of Labor marginal revenue product=1,530 *$5

Fifth unit of Labor marginal revenue product=$7,650

Therefore the marginal revenue product of the fifth unit of labor is $7,650

3 0
3 years ago
The taylor rule puts _________ as much weight on closing the unemployment gap as it does on closing the inflation gap.
ella [17]

Taylor's rule puts double weight on closing the unemployment gap in comparison to the inflation gap.

<h3>What is inflation?</h3>

Inflation is the scenario where the price of goods or services is increased in such a way that results in decreasing the purchasing power of people.

The focus of Taylor's principle is to close the gap in unemployment by much double weight in contrast with the gap in inflation. It wants that the unemployment gap should be twice the inflation gap at the time of closing.

Therefore, the twice weight should be put up on unemployment as suggested by the rule of Taylor.

Learn more about Taylor in the related link:

brainly.com/question/461247

#SPJ1

8 0
2 years ago
Which is the most liquid form of money?
dalvyx [7]
The answer is A - I just took the test!
8 0
2 years ago
Read 2 more answers
Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round yo
Cloud [144]

Answer:

(A)Fv= $864.2

(B) Fv= $1302.05

(C) Fv=  $2003.4

(D) Fv= $96817.21

Explanation:

Giving the following information:

Initial investment= $550

We will use the final value formula:

FV=Present value*(1+i)^n

(A) 9% compounded annually for 5 years.

Fv= 550*(1.09)^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv= 550*(1.09)^10= $1302.05

(C) 9% compounded quarterly for 5 years.

Fv= 550*(1.09)^15= $2003.4

(D) 9% compounded monthly for 5 years.

Fv= 550*(1.09)^60=$96817.21

6 0
3 years ago
Flagstaff Company has budgeted production units of 8,500 for July and 8,700 for August. The direct materials requirement per uni
baherus [9]

Answer:

17,080 ounces.

Explanation:

Given that,

Budgeted production = 8,500

Raw material required per unit = 2 ounces

Opening inventory  = 3,400

Direct material to be purchased:

= (Budgeted production × Raw material required per unit) + Closing inventory - Opening inventory

= (8,500 × 2 ounces) + (20% × 8,700 × 2) - 3,400

= 17,000 + 3,480 - 3,400

= 17,080 ounces.

5 0
3 years ago
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