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irina [24]
4 years ago
15

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was

five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method?
Business
1 answer:
tatiyna4 years ago
4 0

Answer:

The correct answer is Double-declining-balance.  The highest net income in year 2 is 6000.

This higher net income don´t mean the machine was used more efficiently under this depreciation method.

Explanation:

In the file attached you will find a depreciation schedule for each of the alternative methods.  

Each method need different calculus.  

Straight-line

depreciation expense=(Original Value  -Residual Value)/Useful life=

depreciation expense=4400

Units-of-production

estimated productive life  10000

Units of Production Rate=(Original Value  -Residual Value)/estimated productive life=2,2

Double-declining-balance.

Depreciation rate = 1/useful life *100= 20,00%

Download xlsx
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Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he
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Explanation:

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5 0
3 years ago
A company established a $400 petty cash. On October 15, there was $16 remaining in the petty cash fund on that date and there we
spayn [35]

Answer:

On October 15

Travel expense $39  

Delivery Expense $138  

Office expense $214  

Petty cash ($1000 - $400) $600  

Cash over and short ($400 - $39 - $138 - $214 - $16)  $7

             To Cash  $984

(Being the replenishment of the petty cash fund is recorded)

Explanation:

The journal entry is shown below:

On October 15

Travel expense $39  

Delivery Expense $138  

Office expense $214  

Petty cash ($1000 - $400) $600  

Cash over and short ($400 - $39 - $138 - $214 - $16)  $7

             To Cash  $984

(Being the replenishment of the petty cash fund is recorded)

For recording this journal entry we debited the all expenses incurred plus the petty cash is also debited and cash is credited and the remaining balance is transferred to the cash over and short

7 0
3 years ago
Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department
lakkis [162]

Answer:

Explanation:

The journal entry is shown below:

Work in Process-Molding A/c Dr $3,000

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The computation of the purchase amount is shown below:

= Number of kgs purchased × price per kg

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6 0
3 years ago
The value of the consumer price index (CPI) is best described as the:______
Ivenika [448]

Answer:

Option A.

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Explanation:

In simpler terms the Consumer price index a value used in measuring inflation in an economy. It  is a value that measures the weighted average of a basket of consumer goods and services such as food and transportation, healthcare etc. They are used to assess price changes associated with the cost of living in a particular society.

The formula for calculating The Consumer Price index is given as

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This makes the correct answer option A.

8 0
4 years ago
Read 2 more answers
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