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Len [333]
3 years ago
6

Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $77,980. The company estimated that the machine has a s

alvage value of $6,860. The machine is expected to be used for 72,900 working hours during its 7-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to 0 decimal places, e.g. 5,275.)
Business
1 answer:
ad-work [718]3 years ago
6 0

Answer:

Annual depreciation= $10,160 a year

Explanation:

Giving the following information:

Ivanhoe Company purchased a new machine on October 1, 2017, for $77,980. The company estimated that the machine has a salvage value of $6,860. The machine is expected to be used for 72,900 working hours during its 7-year life.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (77,980 - 6,860)/7= $10,160 a year

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A company borrowed cash from the bank and signed a 6-year note at 7% annual interest. The present value for an annuity (series o
nikklg [1K]

Answer:

Explanation:

Present value of note = Annual payment x present value annuity factor

Annual payment = 8,400

PVAF = 4,7665

= $ 8,400 x 4.7665

= $ 40,038.60

So, the present value of note is $ 40,038.60

5 0
3 years ago
Suppose the civilian noninstitutionalized working age population is 35.9 million in Laborland, 4.6 million are working part time
frozen [14]

Answer:

The answers are:

A) 25.23 million people

B) 70.28%

C) 4.92 million people

D) 19.50%

Explanation:

Laborland's total labor force can be calculated by adding those who are employed and those who are unemployed but were searching for a job during the last month.

  • 4.6 million (part-time employed) + 15.71 million (full-time employed) + 3.2 million (looked for a job two weeks ago) + 1.72 million (looked for a job between two and four weeks ago) = 25.23 million people

Laborland's labor force participation rate can be calculated by dividing the labor force by the total population.

  • (25.23 million / 35.9 million) x 100% = 70.28%

Laborland's total unemployed can be calculated by adding the number of people without a job that searched for a job during the last month.

  • 3.2 million + 1.72 million = 4.92 million people

Laborland's unemployment rate can be calculated by dividing the total number of unemployed people by the total work force.

  • (4.92 million / 25.23 million) x 100% = 19.50%

6 0
3 years ago
An auto manufacturer is considering adding new automation to their assembly line to reduce production costs. The manufacturer is
QveST [7]

Answer:

Check the explanation

Explanation:

As per the beta distribution, the average revenue per year = (Pessimistic +4*Most Likely +Optimistic) / 6

Avg revenue per year = (460000 + 4*660000 + 840000) / 6 = 656666.67

MARR = 12%, life = 9 yrs

NPW = -4000000 + 656666.67 * (P/A,12%,9) + 40000 * (P/F,12%,9)

= -4000000 + 656666.67 * 5.32824 + 40000 * 0.36061

= 7498877.6+14424.4

= -433415.60

= -433000 (nearest 1000)

7 0
3 years ago
Read 2 more answers
Younes Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditi
sashaice [31]

Answer:

Contribution margin= $169

Explanation:

<u>First, we need to calculate the total unitary variable cost:</u>

total unitary variable cost= direct material + direct labor + variable overhead + variable selling expense

total unitary variable cost= 38 + 1 + 8 + 4

total unitary variable cost= $51

<u>Now, the contribution margin:</u>

Contribution margin= 220 - 51

Contribution margin= $169

8 0
3 years ago
Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted averag
Sidana [21]

Answer:

a. 10 times

Explanation:

The computation of price-earnings ratio is shown below:-

Earning per share = Net income ÷ Weighted average shares outstanding

= $2,000,000 ÷ 400,000

= 5

Price earning per share = Market price per share ÷ Earning per share

= $50 ÷ 5

= 10 times

Therefore for computing the price earning per share we simply applied the above formula.

8 0
3 years ago
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