Answer:
$2,250
Explanation:
Given;
Cost of machine = $100,000
Residual value = $10,000
Useful life = 10 years
Annual depreciation = (Cost - Residual value ) ÷ useful life
= ($100,000 - $10,000 ) ÷ 10
= $90,000 ÷ 10
= $9,000 per year
Duration from October 1, 2018 to December 31, 2018 in year =
years
= 0.25 year
therefore,
Depreciation expense for the year ended December 31, 2018
= Annual depreciation × Duration
= $9,000 × 0.25
= $2,250
Answer:
The correct answer is: units-of-production.
Explanation:
In the depreciation method per production units, an annual production quantity is assigned according to the total calculation of potential units that can be produced in the useful life of the good. In order to calculate the total value, the units that were actually produced must be multiplied by the depreciation cost of each unit.
It should generate another major event around 2050-2060
Answer:
the answer to this question is true
Answer:
The minimum transfer price that the Alabama Division should accept is $60 per unit.
Explanation:
The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).
the minimum price to be charged is :
Variable cost per unit = $24
Fixed Cost per unit = $15
Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).
Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .
Minimum transfer price = $60 per unit.
Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.