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Effectus [21]
3 years ago
13

On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year us

eful life and an $8,000 salvage value. If Marino uses the straight-line method, the amount of depreciation expense recognized on the Year 2 income statement is ________.
a- $4,000.
b- $6,000.
c- $12,000.
d- $24,000.
Business
1 answer:
iogann1982 [59]3 years ago
4 0

Answer:

$10,000

Explanation:

The computation of the depreciation expense is shown below:

= (Purchase value of a truck - salvage value) ÷ (expected useful life)

= ($48,000 - $8,000) ÷ (4 years)

= ($40,000) ÷ (4 years)  

= $10,000

The depreciation expense in this method is the same for the entire remaining useful life

Note: This is the answer and the same is not provided in the given options

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If you needed financial advice, whom would you ask? Why?
kap26 [50]

Answer: financial advisors

Explanation: A financial advisor can help you create a long-term investing strategy, weigh the pros and cons of different account types, pick mutual funds, rebalance your investing portfolio, and set savings benchmarks to help you reach your long-term goals.

Hope this helped

6 0
3 years ago
Based on its perceived riskiness, the annual required rate of return is 11.5% for shares of Cyberdyne Inc. The company just paid
Ugo [173]

Answer:

the  estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38

Explanation:

The calculation of the estimated price of the stock in 5 years is given below:

= 5th Year dividend ÷ (Required return - Growth Rate)

Dividend at year 5 should be

=Dividend at year 0 × (1 + Growth Rate)^5          

= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)

= $216.38

Hence, the  estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38

4 0
3 years ago
Splendid Occasions received $2,970 for services to be performed for the next 8 months on March 31 and recorded this transaction
Kay [80]

Answer:

If Splendid Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?

Ans: $2,970

The ''other method'' in question is the Cash method which recognizes revenue when cash is paid unlike the Accrual method that recognizes it when earned.

Using the Cash method the Service Revenue would be $2,970 because the cash has been received for it.

If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?

= Cash revenues - Cash expense

=  Received cash for meals served to customers - Prepaid rent for three months - Received and paid electricity bill

= 2,530 - 2400 - 60

= $70

If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?

= Revenue - Expense

= Served a banquet on account + Received cash for meals served to customers - Rent - Electricity - Accrued salary expense - depreciation

= 2,810 + 2,530 - (2,400/3) - 60 - 2,670 - 380

= $1,430

<em>Cash spent on Equipment is not expense but capital expenditure. </em>

4 0
2 years ago
On January 1, Year 1, Eureka Company issued $290,000 of 4-year, 5% bonds at face value. The annual cash payment for interest is
zhannawk [14.2K]

Answer:

$304,500

Explanation:

Interest payable on December 31, year 1 = $290,000 * 5%

Interest payable on December 31, year 1 = $14,500

Total amount of liabilities to be reported on the Balance Sheet, year 1:

= $290,000 + $14,500

= $304,500

So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.

5 0
3 years ago
From the following information extracted from the Balance Sheet of XYZ Company, you are required to calculate:
Art [367]

Answer:

Ethats really cool can you mark me as brainliest

8 0
2 years ago
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