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miv72 [106K]
3 years ago
6

On January 1, 20X2, X Company made modifications to an asset used in its manufacturing operations in order to extend its useful

life. The asset had an original cost of $30,000 and accumulated depreciation of $12,000, with a remaining useful life of 5 years. As a result of the modification, which cost $6,000, the remaining useful life was increased to 8 years. If X Company uses straight-line depreciation, in 20X2, X Company: ________
Business
1 answer:
sp2606 [1]3 years ago
8 0

Answer:

The answer is: Will increase the asset value by $6,000 (total asset value $24,000) and record depreciation expenses by $3,000 per year (for 8 years of remaining useful life)

Explanation:

The value of the asset modified will change from $18,000 (the difference between $30,000 original cost minus $12,000 depreciation) to $24,000 including the repairs.

The depreciation expense can be calculated by dividing the new asset value ($24,000) by the new useful life of the asset (8 years) to $3,000 per year.

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Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon
amm1812

Answer:B. Opponents of active stabilization policy believe that significant time lag in both fiscal and monetary policy often excercebate economic fluctuations.

C. Advocate of active stabilization policy believe that the government can adjust monetary and fiscal policy to counter waves of excessive optimism and pessimism among consumers and business.

Examples of automatic stabilizer

A. Corporate income taxes

B. Personal income taxes

Explanation:

Stabilization policy helps to stabilize the economy during expansionary or deficit period however a lag in the implementation will surely affect getting the right outputs from the implementation.

The economy has inbuilt stabilizer s that tend to correct excessiveness in economy such as the personal and corporate tax . The federal fund rate will be adjusted as the need be to stabilizer the economy even though it can be used as a stabilizer but it's not an automatic stabilizer.

5 0
3 years ago
The customer has decided to purchase a home instead of renting. The price of the home is $750,000 and the customer intends to pu
Natasha2012 [34]

Answer:

A. growth stocks and blue chip stocks immediately in the amount of $150,000 to obtain the necessary cash down payment

Explanation:

The customer wouldn't want to get the stock cashed out now, so he doesn't have to worry about the stock or market having a huge decline and so, he can't buy the house.

5 0
3 years ago
Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill thro
Grace [21]

Answer:

d. The $1,500,000 is not taxable because Detroit settled the case

Explanation:

The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.

8 0
3 years ago
what are the positives and negatives of starting your career planning now while still in middle school?
andrey2020 [161]

+ is you know what you are looking for in life, what are your goals and what you need to do to achieve them.

- is getting bored soon (changing your mind), and not enjoying your childhood.

I hope i helped :)

6 0
3 years ago
MW Company manufactures down-filled comforters and uses an activity-based costing system. During the current period, the company
Scilla [17]

Answer:

MW Company

Activity rate for order process = $54,120/660

= $82 per order

Explanation:

a) Data and Calculations:

Production = 16,500 units

Direct labor = 19,800 hours

Machine hours = 21,450 hours

No. of orders = 660

No. of shipments = 165

Order-processing cost pool = $54,120

Shipping cost pool = $14,025

Assembly cost pool = $71,280

Activity rate for order process = $54,120/660

= $82 per order

b) MW Company uses an activity-based costing system to identify its activities into cost pools and assign the cost of each activity pool to the products and services according to their actual consumption of the activities.  The activity-based costing technique provides a more accurate method for determining the costs of products and services.  As a more accurate method for pricing decisions than other traditional methods, activity-based costing technique increases management's understanding of overheads and cost drivers and makes activities that are costly and non-value adding to become more visible, allowing managers to reduce or eliminate them, because these activities add costs to the production system.

3 0
3 years ago
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