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Makovka662 [10]
3 years ago
11

g Texas Corporation purchases a piece of equipment on January 1 for $300,000 and the equipment has an expected useful life of te

n years. Its salvage value is estimated to be $20,000. Assuming Texas uses the double-declining balance depreciation method, what would be the accumulated depreciation at the end of the second year
Business
1 answer:
Vikki [24]3 years ago
6 0

Answer:

$108,000

Explanation:

For computing the accumulated depreciation for the end of the second year

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 10

= 10

Now the rate is double So, 20%

In year 1, the original cost is $300,000, so the depreciation is $60,000 after applying the 20% depreciation rate

And, in year 2, the depreciation is

=($300,000 - $60,000) × 20% = $48,000

So, the accumulated depreciation at the end of the second year is

= $60,000 + $48,000

= $108,000

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If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?
Neporo4naja [7]

Answer:

ARR or Payback

Explanation:

Here are the options to this question

Multiple Choice

BET or IRR

ARR or Payback

NPV or IRR

NPV or Payback

BET or NPV

Accounting rate of return = Average net income / Average book value  

Average book value = (cost of equipment - salvage value) / 2

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

The NPV and IRR considers the time value of money by discounting the cash flow at discount rate.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

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2 years ago
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a method that business operators can use to maintain a good customer base is to? A respond to customer B ignore customer feedbac
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Answer:

A respond to customer

Explanation:

Responding to customers is a good customer care practice. As business competition increases, the need for excellent customer care increases. Offering quality and prompt services creates loyalty among the customers.  A loyal customer is not likely to purchase from competitors.

When customers feel and believe they are offered excellent services, they will recommend the business to other customers. In due course, the business will have a circle of many loyal customers. Ignoring a customer or over-pricing of goods will make existing and potential customers look for alternatives.

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2 years ago
If a company spends $14.4 million to install refurbished footwear-making equipment with capacity to produce 1 million pairs of a
Margaret [11]

The annual depreciation costs at that facility will rise by 10% or $1,440,000.

<h3>Annual depreciation costs</h3>

Life of the equipment = 10 Years

Salvage value = 0

Annual Depreciation= (Cost of equipment - Estimated salvage value) / Estimated useful life

Annual Depreciation= ($14.4 million- 0) / 10

Annual Depreciation= $1,440,000

or

Annual Depreciation= $1,440,000/$14,400,000 ×100

Annual Depreciation= 10%

Inconclusion the annual depreciation costs at that facility will rise by 10% or $1,440,000.

Learn more about annual depreciation cost here:brainly.com/question/15872169

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