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olya-2409 [2.1K]
3 years ago
5

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. Wha

t is the amount of depreciation for the second full year, using the double-declining-balance method?
Business
1 answer:
allochka39001 [22]3 years ago
4 0

Answer:

The answer is:  $18, 750

Explanation:

The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:

Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period

Machine cost: $75, 000

Residual Value: $5, 000

Estimated Life: 4 years/18, 000 hours

Straight line depreciation percentage : 100/4 = 25%

Depreciation Year 1 on DDB =  2 * 25% * $75, 000

                                               = $37, 500

Depreciation Year 2 on DDB =  2 * 25% * ($75, 000 -$37, 500)

                                               = $18, 750

       

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The Age Discrimination in Employment Act prohibits employment discrimination on the basis of age against individuals up to forty
stiks02 [169]

True, Age Discrimination in Employment Act (ADEA) forbids age discrimination against people who are age 40 or older.

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What is the Age Discrimination Act of 1978?

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8 0
2 years ago
Which economic theory(ies) view(s) mncs as bad for the working class and developing world?
Kaylis [27]

Radicalism is the economic theory that views MNC's as bad for the working class and developing world.

Given that MNC's are viewed bad for the working class and developing world.

We are required to name the economic theory in which MNC's are viewed as bad for the working class and developing world.

The name of the economic theory that views MNC's as bad for the working class and developing world is radicalism. The term radicalism believes that society needs to be changed, and that these changes are only possible through revolutionary means. It is basically a negative theory for the MNC's. They are seem to be bad for the developing countries because they sometimes use the resources of the country out of the limit and in future the country will suffer from the scarcity of resources.

Hence radicalism is the economic theory views MNC's as bad for the working class and developing world.

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8 0
1 year ago
. Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements must be true, according to the CAPM
KiRa [710]

Answer:

c. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount

This statement is correct because an increase in inflation is a risk which will be reflected by an increase in the risk free rate. Also increase Beta is that sensitivity of the stocks to the market risk premium, and having different betas does not affect the the increase in expected rate of return caused by inflation.

Explanation:

a. If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated

This statement is wrong because if you invest 50,000 in stock X and 50, 000 in stock B you will have a beta of 1

50,000/100,000=0.5

(0.5*1.5)+(0.5*0.5)=0.75+0.25=1

b. Stock Y's realized return during the coming year will be higher than Stock X's return

This statement is wrong because although stock y's expected return will be higher because it has a higher beta, realized returns cannot be decided beforehand and will have to wait and see how the market reacts

d. Stock Y's return has a higher standard deviation than Stock X.

This statement is wrong because we do not have any information about any of the stocks standard deviation and knowing the betas is not enough to find the standard deviation.

If the market risk premium declines, but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y.

This statement is wrong because stock y has a bigger beta than stock x which means that when the risk premium declines stock y will have a larger decline.

5 0
3 years ago
Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5. She is pl
andreev551 [17]

Based on Celine's price elasticity of demand, the increase in quantity demanded will be 30%.

<h3>How will the quantity demanded change?</h3>

This can be found as:

= Change in price x Price elasticity of demand

The change in price will be negative because the price is being reduced.

Solving gives:

= -20% x -1.5

= 30%

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4 0
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inna [77]

Answer:

5b,2c,4d,7g,6a,1e,3f

Explanation:

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  • Commit to your solution by setting a deadline and seeing the goal accomplished.
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3 0
3 years ago
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