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Agata [3.3K]
3 years ago
14

On October 1, 2018, Swifty Company places a new asset into service. The cost of the asset is $125000 with an estimated 5-year li

fe and $30500 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2018, balance sheet assuming that Swifty Company uses the double-declining-balance method of depreciation?
Business
1 answer:
Novosadov [1.4K]3 years ago
4 0

Answer:

The book value of the plant asset on the December 31, 2018 is $75,000.

Explanation:

<u>Determine the depreciable cost,</u>

The depreciable cost = Acquisition cost - Salvage value.

The depreciable cost = 125,000 - 30,500.

The depreciable cost = $94,500.

<u>Determine the annual depreciation expense,</u>

The annual depreciation expense = depreciable cost/useful life

The annual depreciation expense = 94,000/5

The annual depreciation expense = $18,900.

<u>Find the % rate of depreciation .</u>

The % rate of depreciation = (18,900/94,500) × 100.

% rate of depreciation = 20%

Since it is the double-declining-balance method of depreciation we multiply the % rate by 2 =  20% × 2 = 40%

<u>Applying the rate to the carrying value of  the asset to obtain current year's depreciation expense.</u>

Current year's depreciation expense = Carrying value of  the asset × the depreciation rate %.

Current year's depreciation expense = 125,000 × 40%.

Current year's depreciation expense = $75,000

<u />

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An effective team would never have ______. a. multiple long term goals b. a series of coordinated deadlines c. unclear definitio
Effectus [21]

An effective team would never have Unclear definitions of goals.

Option C is correct answer.

Unclear definitions of goals :

Unclear goals are part of the communication problem that continues to plague many workplaces, and were also cited as the number one cause of stress for tech workers in an earlier Comparably study. Employees who don't know what's expected of them can't perform their best work.

What happens when goals are unclear?

A lack of direction and unclear goals are among the largest reasons why projects fail. While it may be impossible to predict every outcome, taking time early on to define and communicate objectives and goals can radically increase the chance your team successfully completes a project.

Learn more about Unclear definitions of goals :

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#SPJ4

4 0
1 year ago
Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no ot
Oduvanchick [21]

Answer:

  • The complete present value calcuation is below.

  • The net present value of this project is: $77,930.58 (assuming a value for the sale of the business equal to the purchase price).

Explanation:

For this problem, the first and basic question is:

  • <em>Prepare a net present value calculation for this project. What is the net present value of this project?</em>

<em />

<h2>Solution</h2>

The net present value is equal to: the present value of the future cash flows less present value of the investements.

<u>1. Present value of the future cash flows:</u>

The discount factor is equal to 1 / [1 + (1 + r)ⁿ]

Where:

  • r = 5% = 0.05
  • n = the number of year

Year     Cash flow     Discount factor     Present value

1            $30,000       1/(1 + 0.05)             $30,000/1.05 = $28,571.43

2           $30,000       1/(1 + 0.05)²           $30,000/(1.05)² = $27,210.88

3           $30,000       1/(1 + 0.05)³           $30,000/(1.05)³ = $25,915.13

4           $30,000       1/(1 + 0.05)⁴           $30,000/(1.05)⁴ = $24,681.07

5           $30,000       1/(1 + 0.05)⁵           $30,000/(1.05)⁵ = $23,505.78

5           $240,000*   1/(1 + 0.05)⁵           $240,000/(1.05)⁵ = $188,046.28

*For the year 5 you must also consider the value of the business, which is unknow. You should have some information about it. Although unrealistic, at this stage we can just assume a value: let's say it is the same purchase price: $240,000. That is what the last line shows:

The discount the value of the value of the business is:

  • $240,000 / (1.05)⁵ = $188,046.28

The total present value of the future cash flows is the sum of the present values of all the cash flows:

$28,571.43 + $27,210.88 + $25,915.13 + $24,681.07 + $23,505.78 + $188,046.28 = $317,930.58

<u>2. Calculate the net present value:</u>

  • Net present value =

                     = Total present value of future cash flows - investment

  • Net present value = $317,930.58 - $240,000 = $77,930.58
5 0
2 years ago
During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wag
hjlf

Answer:

GROSS MARGIN = 33.33%

Explanation:

PRODUCTION COST COMPONENTS

  • Direct materials 14,000  
  • Direct work 19,000  
  • Lease and utilities 17,000

TOTAL PRODUCTION COST = 50,000

TOTAL UNITS PRODUCED = 5,000

UNIT COST= (Total Production Cost / Total Units Produced) = 50,000 / 5,000 = 10  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 5,000 – 3,000 = 2,000

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,000 * 10 = 20,000

SALES REVENUE= (Sold Units * Sale Price) = (3,000 * 15) = 45,000

COST OF SOLD GOODS (a) = (Sold Units * Unit Cost) = 3,000 * 10 = 30,000

COST OF SOLD GOODS (b) = (Beginning Balance + Production cost – Final Balance) = 0 + 50,000 – 20,000 = 30,000

GROSS MARGIN = ((Sales Revenue – Cost of sold Goods) / Sales Revenues) * 100 = ((45,000 – 30,000) / 45,000) * 100 = 33.33%

COST OF SOLD GOODS (a) Calculated according to the inventory unit cost

COST OF SOLD GOODS (b) Calculated as the difference in inventory

7 0
3 years ago
Question 1 which of the follow will happen if you miss a monthly credit card payment?
Stells [14]
What can happen if you miss a monthly credit card payment is that you will be charged a late fee, and you can also lose rewards points.
Hope this helps!
6 0
3 years ago
Shakira has a balance of $202. 86 in her checking account on Saturday morning. She uses her debit card to pay her cell phone bil
Nataly [62]

Overdraft is a facility provided by bank to make expenses more than that of the balance present in the account of customers. This facility is provided to certain specified customers with high credibility.

Given

Balance is $202.86

Note: Payments will be recognized in descending order because it is the policy of bank to record the highest transaction first.

Payments made are :

$113.92

$80.73

$35.24

$16.89

<h3>Calculations</h3>

\begin{aligned}\rm Overdraft&= Balance - Payments \\\\&#10;\rm Overdraft&= \$202.86-\$113.92-\$80.73-\$35.24-\$16.89\\&#10;\\\rm Overdraft&= \$ -43.92\end

Therefore Shakira will be allowed to overdraw from the account as the amount of overdraft is less than $50.

Elaborating further, When we deduct the payments from the balance in descending order we reach on a conclusion that there will be 2 overdrafts made because after deducting $113.92 and $80.73 from the balance amount of $202.86 there will be 2 payments pending amounting $35.24 and $16.89 from the left balance of $ 8.21.

Therefore the correct option will be OPTION B i.e. 2 overdrafts.

Learn more about overdrafts here:

brainly.com/question/14182019

7 0
2 years ago
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