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Reptile [31]
3 years ago
14

Ivanhoe company purchased machinery with a list price of $88000. They were given a 7% discount by the manufacturer. They paid $4

00 for shipping and sales tax of $4700. Ivanhoe estimates that the machinery will have a useful life of 10 years and a residual value of $25000. If Ivanhoe uses straight-line depreciation, annual depreciation will be
A) $6194
B) $5684
C) $8694
D) $6152
Business
1 answer:
cestrela7 [59]3 years ago
8 0

Answer:

A) $6194

Explanation:

Price before discount = $88,000

discount rate = 7%

Amount of discount = 7% *$88,000 = $6,160

Price after discount = Price before discount - Amount of discount

= $88,000 - $6,160

Price after discount = $81,840 (this is the price included in depreciation)

Items included in total cost of machinery;

Price of machinery after discount = $81,840

Shipping  cost = $400

Sales tax = $4,700

Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940

Depreciation per year = (Total cost of the machinery - salvage value) / useful life

= (86,940 - 25,000)/ 10

= 61,940/10

= 6,194

Therefore annual depreciation = $6,194

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Answer:

The correct answer is A and B

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It is grounded on The Law of One Price, which states all the identical goods  have the same price.

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Grover Corp. manufactures three products, and is currently facing a labor shortage. The selling price, costs, and labor requirem
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Answer:

A, C, B

Explanation:

Calculation to determine In what order should Grover Corp. prioritize production of its products to maximize profit during the labor shortage

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Less Variable cost per unit

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PRODUCT C=$3.00

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