All categories

3 years ago

Which of the following statements is true regarding depreciation methods?

Business

1 answer:

r-ruslan [8.4K]3 years ago

7 0

Answer:

The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.

Explanation:

Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the Straight-line method, the Double Declining Balance method, and the Units of Production method. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.

You might be interested in

A Deductible is what

Artyom0805 [142]

B the amount of loss you pay

8 0

2 years ago

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. T

fomenos

Answer:

Part (a)

At the break-even position, the Income Statement is as under:

Sales 12500 * $180 $2,250,000

Variable costs 12500 * $135 ($1,687,500)

Contribution Margin $562,500

Fixed Cost ($562,500)

Profit for the year $0

Part (B)

The sales required to breakeven due to increased fixed cost is $2,790,000

Explanation:

The breakeven point at normal fixed costs is:

Breakeven Point = Fixed Cost / Contribution per unit

Putting values we have:

Breakeven Point = $562,500 / ($180 - $135) = 12500 Units.

If the fixed costs increases by $135,000 which means the fixed cost becomes $697,500 then the breakeven point increases to:

Breakeven Point = $697,500 / ($180-135) = 15500 Units

The Sales required in dollars to breakeven on this new fixed cost level is:

Breakeven Sales = 15500 Units * 180 = $2,790,000

6 0

3 years ago

As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marg

Degger [83]

Answer:

last

equal

Explanation:

A profit maximising producer would produce up to the point where the marginal product of the last unit of factor employed equals the factors price.

After, this point is reached, diminishing returns sets in

7 0

3 years ago

Jamarcus's employer pays 80 percent of his medical insurance. If the insurance costs Jamarcus $20 a week, how much is his employ

Mazyrski [523]

It's sixty positive must vote brainliest Xd

4 0

2 years ago

In a __________ pricing tactic, sellers advertise low prices and then aggressively pressure customers to purchase higher-priced

Mrrafil [7]

Answer:

This is known as a "bait and switch" pricing tactic :)

3 0

2 years ago