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maks197457 [2]
3 years ago
14

At the beginning of year 1, Looby Corp. purchases equipment for $100,000. The equipment has a residual value of $20,000 and an e

xpected useful life of 10 years. What is accumulated depreciation at the end of year 2 using straight-line depreciation
Business
1 answer:
ANEK [815]3 years ago
4 0

Answer:

Accumulated Depreciation at the end of year  =  $16,000

Explanation:

<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>

<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>

Annual depreciation:

= (cost of assets - salvage value)/ Estimated useful life

Cost - 100,000

Residual value = 20,000

Estimated useful life = 10 years

Annual depreciation = (100,000- 20,000)/10 =8,000

Annual depreciation = 8,000

Accumulated Depreciation for 2 years = Annual depreciation× number of years

                            = 8,000× 2 = 16,000

Accumulated Depreciation for 2 years =  $16,000

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Managerial accounting information: Select one: a. follows GAAP in the reporting process. b. can be tailored to the needs of the
saveliy_v [14]

Answer:

b. can be tailored to the needs of the internal user.

Explanation:

Managerial accounting information is basically for internal users, and is not aimed to provide information to external users. It aims of future projections.

It need not follow the US GAAP process, as there is no statutory requirement.

Shareholders are considered external for this purpose, as internal ones are, management, employees, labor etc:

Therefore, it does not help shareholders.

It does not report any kind of business results, it only aims to regulate transactions and accordingly planning future goals.

Therefore, correct option is

b. can be tailored to the needs of the internal user.

7 0
3 years ago
Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to pu
lubasha [3.4K]

Answer:

B) diminishing marginal utility

Explanation:

The law of Diminishing marginal utility states that utility falls as consumption increases.

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Because of diminishing marginal utility, consumption can be encouraged by reducing price.

As utility falls, consumers would be unwilling to buy more goods at the same price, therefore it would be reasonable to reduce price to encourage consumption.

6 0
3 years ago
Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o
LenaWriter [7]

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

6 0
3 years ago
Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels a
fredd [130]

<u>$450 is the answer. </u>

<u>The total revenue the company earns after selling 10 boards is $450. </u>

<u> </u>

Further Explanation:

Total Revenue:

Total revenue refers to the total receipts or the income after selling the product.

Total profit:

Total profit refers to the amount subtracted by the total cost of the firm from the total revenue of the firm. Total profit is the excess of the total cost from the total revenue.  

Total cost:

Total cost refers to the cost of making the product which is being bear by the company or the owner of the firm. Total cost is the cost of making the product.

Total Revenue = Cost of selling one skateboard × Total number of skateboards

                         = $45 × 10

                         = $450

<u>Therefore, Total Revenue is $450. </u>

<u> </u>

Thus, the total revenue the company earns after selling 10 skateboards is $450.

Learn More:

1. Revenue from property taxes  

<u>brainly.com/question/2689578 </u>

2. Variable costing

<u>brainly.com/question/9203162 </u>

3. Owning a car  

<u>brainly.com/question/2684773 </u>

Answer Details:

Grade: High School

Chapter: Total profit

Subject: Accountancy

Keywords: Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total revenue the company makes after selling 10 boards? $300 $350 $400 $450.

5 0
3 years ago
Read 2 more answers
Whether a firm has growth or value and how this firm characteristic affects an estimate of the cost of equity is called the ____
Dahasolnce [82]
It is called value factor. There are two kinds of value factor one is present value factor and second is future value factor. The business or anything in the business has their value on their own. The future value factor is used to calculate the future value of the amount per dollar of its present value. It is the amount greater than a dollar and you can see this on the table when you calculate the future value or FV. Present Value factor is based on the time and money when you borrow or it is the debt that can grow in the span of time. 
5 0
3 years ago
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