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marysya [2.9K]
3 years ago
5

Equipment was purchased for $68,000 on January 1, 2013. Freight charges amounted to $2,800 and there was a cost of $8,000 for bu

ilding a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?a. $26,720.b. $13,360.c. $11,440.d. $22,880.
Business
1 answer:
Dahasolnce [82]3 years ago
5 0

Answer:

a. $26,720

Explanation:

Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:

Original cos t = Equipment purchase cost + freight charges + installment charges

= $68,000 + $2,800 + $8,000

= $78,800

Now the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ estimated life in years

= ($78,800 - $12,000) ÷ 5 years

= $13,360

Now the accumulated depreciation is

= Depreciation expense × number of years

= $13,360 × 2 years

= $26,720

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Answer:

Economic value added = $1,250,000

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]

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Economic value added = $1,250,000

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3 years ago
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3 years ago
Assume that Leyia and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendat
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Answer:

The budgeting recommendations will be cutting the expenses on feeding, groceries and every other expenses, in other to save over the next five years. This will prepare Leyia and Larry beforehand to begin a family and also, mitigate hosterity effects of their variable expenses financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby.

Explanation:

Beginning a family can be a tough task for low income earners. Leyia and Larry will need to wait for five years and cut their expenses( Every expenses) over this waiting period of five years. By so doing, they will have saved enough money to carter for the expenses of new baby.

Also, a $2,400 loss of income, in 18 months is anticipated. Cutting of expenses over the period of five years will reduce the financial hardship effects on the family which Leyia and Larry will begin, after the stipulated five years.

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3 years ago
Masterson Company's budgeted production calls for 66,000 units in April and 62,000 units in May of a key raw material that costs
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Answer:

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In order to calculate the budgeted materials needed in units for April we would have to use the following formula:

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The budgeted materials needed in units for April is 64,800 units

​

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3 years ago
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An out-group is a group that is distinguished from an in-group by its dissimilarity. Where an in-group is defined by the presence of a shared element of identity, such as a belief or a trait, and an out-group is defined by the absence of that shared element.

Learn more about in-groups and out-groups here:

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