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Rama09 [41]
2 years ago
12

Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It

is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?
Business
1 answer:
elixir [45]2 years ago
4 0

Answer:

The depreciation is $52,500

Explanation:

The formula to compute the depreciation under the straight-line method is shown below:

= \dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}

= \dfrac{(\$225,000 - \$15,000)}{4\years}

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

So, these usage of hours should be ignored.

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As an MNC (multinational corporation) seeks to balance and honor the ethical standards of both the home and host countries, conf
sergeinik [125]

The manager should analyze the legal and ethical differences of home country compared to the host country and<u> develop a strategy that is beneficial to the company and does not clash with the ethical and legal parameters of the host country.</u> It is important to analyze each area that may affect the company, such as government, employee, supplier, investor and customer protectionism, and to analyze common ethical, legal and cultural standards for stakeholders and then develop policies and standards that do not negatively influence the country.

Hypernormas are very effective in solving these possible conflicts, as they guide the lowest-level norms to the highest-level ones, which are those related to fundamental principles for humanity. Which is effective to guide management in an international market.

6 0
3 years ago
The May transactions of Hanschu Corporation were as follows.
romanna [79]

Answer and Explanation:

The journal entries are as follows:

On May 4

Account  payable $600

        To cash $600

(Being cash paid is recorded)

On May 7

Account  receivable $6,500  

       To service revenue $6,500

(being service on account is recorded)

On May 8

Supplies $800  

       To Account payable $800

(being supplies purchased on account)

On May 9

Equipment $1,000  

        To cash $1,000

(being cash paid)

On May 17

Salary expense $500

         To cash $500

(being cash paid)

On May 22

Repair expense $800  

        To Account payable $800

(Being received bill for repairing of an equipment is recorded)

On May 27

Prepaid rent $1,100

         To cash  $1,100

(Being cash paid is recorded)

5 0
2 years ago
On July 15, 2021, the Nixon Car Company purchased 2,600 tires from the Harwell Company for $35 each. The terms of the sale were
mote1985 [20]

Answer:

Explanation:

The journal entries are shown below:

On July 15:

Purchase A/c Dr $89,180

       To Accounts payable $89,180

(Being purchase of goods are made on credit with discount)

The computation of the purchase of tires after applying the discount is shown below:

= Number of tires × price per tire - discount rate

= 2,600 tires × $35 - 2%

= $91,000 - $1,820

= $89,180

On July 23:

Account payable A/c Dr $89,180

     To Cash A/c                                  $89,180

(Being payment is made)

On August 15:

Account payable A/c Dr $89,180

Interest expense A/c Dr $1,820

     To Cash A/c                                  $91,000

(Being payment is made on late interval)

4 0
3 years ago
The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, whil
allsm [11]

Answer:

It is 3.25 times

Explanation:

EBITDA Multiple = Enterprise Value/ EBITDA

Where EBITDA =  EBIT+Depreciation & Amortization

              =  $91,000+$157,000

              =$248,000

Enterprise Value (EV) =  Market value of the equity +Debt-Cash and Cash Equivalent

EV= $645,000+$215,000-$53,000

    =$807,000

Hence, EBITDA Multiple = $807,000/$248,000

                                        =3.25 times

EBITDA Multiple is used to compares a company’s Enterprise Value to its annual EBITDA.

8 0
3 years ago
Read 2 more answers
Marvin Corporation has the following information reported on the balance sheet as of December 31, 2017 Common Stock, $10 par val
SCORPION-xisa [38]

Answer:

  • How many shares of common stock are outstanding?

C. 3,000

Explanation:

Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.

The company issued 9,000 shares, it is reflected in the Common Stock account,  $90.000 / $10 = 9,000.

Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.

Finally the total Common Shares outstanding are 3,000.

3 0
3 years ago
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