1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skad [1K]
4 years ago
10

Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,00

0. The life of the equipment was estimated to be 6 years. The book value of the equipment at the beginning of the third year would bea. $90,000b. $75,000c. $65,000d. $25,000
Business
1 answer:
Likurg_2 [28]4 years ago
8 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

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

Annual depreciation= (90,000 - 15,000)/6= 12,500

Accumulated depreciation year 2= 12,500*2= 25,000

Book value= 90,000 - 25,000= 65,000

You might be interested in
What is a motive?
AnnZ [28]

A) a motive is a reason you do something. In business it'd be, for example, profit motive. Your motive is the amount in the profit

6 0
3 years ago
Read 2 more answers
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio
Sliva [168]

Answer:

The correct answer is 10.72% ( Approx.).

Explanation:

According to the scenario, the given data are as follows:

Debt ratio = 46.5%

Capital intensity ratio = 2.51 times

Profit margins = 21%

Dividend payout = 38%

Formula to calculate sustainable growth rate ae as follows:

Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)

where, Retention rate =(1 - dividend payout rate)

= (1-0.38) = 0.62

ROE = Profit margin × Total asset turonver × Equity multipler

= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)

= .21 × (1/2.51) × 1/(1-.465)

= .21 × 0.398 × 1.869

= 0.1562

=15.62%

So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)

= 0.096844 / 0.903156

= 0.1072

= 10.72% (approx.)

Hence, the correct answer is 10.72% (approx.).

7 0
4 years ago
Which of the following is a characteristic of economic services:
9966 [12]

Answer:

useful

Explanation:

i got it from USA test prep

4 0
3 years ago
Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area. True Fa
lidiya [134]

It is true that departmentalization by location allows an organization to readily respond to the unique demands of each geographical area.

The departmentalization by location is a strategy that organizations use to maintain departments in different locations where they operate, in order to deal more closely with the company's activities and needs.

This is a positive strategy that can speed up decision making, as each geographic area has different needs that must be addressed differently from the other.

So the statement is true and some of the advantages of departmentalization by location is improved communication, better allocation of employees and greater product promotion.

Learn more about departmentalization here:

brainly.com/question/6229273

6 0
3 years ago
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,300 in tailoring fee
Luba_88 [7]

Answer:

net income = $31,500

Explanation:

given data

collect tailoring fees = $43,300

paid expenses = $12,300

Depreciation expense=  $2,500

Accounts receivable =  $1,050

supplies increased = $4,300

liabilities increased = $2,350

to find out

accrual basis net income

solution

we get here net income by given expression that is

net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1

put here value

net income =  $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500

net income = $31,500

8 0
3 years ago
Other questions:
  • Northern Company has bonds with an amortized cost of $600,000. At the end of the first reporting period, the bonds had a fair va
    12·1 answer
  • Landon jewelers uses the perpetual inventory system. on april​ 2, landon sold merchandise with a cost of​ $2,500 for​ $7,000 to
    7·1 answer
  • Jonathan, a salesperson for a food processor manufacturing company, is selling his company's new juicer to prospective customers
    11·2 answers
  • Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t
    5·1 answer
  • The central bank buys $1,000 of government securities only from commercial banks. The maximum change in excess reserves, banking
    10·1 answer
  • *
    12·1 answer
  • When commercial banks need more Federal Reserve Notes, Question 16 options: they call the Bureau of Engraving and Printing, whic
    11·1 answer
  • Problem 4-8 Sales and Growth [LO2] The most recent financial statements for Alexander Co. are shown here: Income Statement Balan
    8·1 answer
  • How does government pay for
    5·1 answer
  • There are two FICA taxes withheld from your paycheck: Social Security (6.2%) and Medicare (1.45%). Your gross pay for this month
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!