1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andrezito [222]
3 years ago
10

On January 2, 2019, Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000

hours. The estimated residual value is $14,000. If Konrad Corporation uses the units of production method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the asset was used 6,000 hours?
A. $166,667
B. $97,200
C. $162,000
D. $171,333
Business
1 answer:
mojhsa [17]3 years ago
5 0

Answer:

C. $162,000

Explanation:

As for the provided information,

The cost of machine = $500,000

Residual value = $14,000

Therefore amount to be depreciated in useful life = $500,000 - $14,000 = $486,000

Using units of production method we have:

Total expected hours of production = 18,000

Therefore, depreciation per hour = $486,000/18,000 = $27 per hour

Total use in current year = 6,000 hours

Therefore, depreciation in current year = $27 \times 6,000 = $162,000

You might be interested in
Which of the following is a correct application of Marginal Analysis? a. You buying 4 pairs of shoes for $240 because you are wi
RoseWind [281]

Answer:

Option d is the right one.

Explanation:

  • Marginal research or analysis to optimize future gains as a decision-making method. In comparison to the expenses incurred by this same behavior, it calculates added benefits. The illustration described demonstrates that the marginal gain is smaller than that of the marginal cost.
  • This involves purchasing goods until the marginal gain is equal to the marginal cost.

The other options aren't sufficient for the scenario provided. But that will be the best alternative for option d.

6 0
3 years ago
The ______ argues that combining location specific assets or resource endowments and the firm's own unique assets often requires
bulgar [2K]

Answer:

The <u>eclectic paradigm</u> argues that combining location specific assets or resource endowments and the firm's own unique assets often requires FDI.

8 0
2 years ago
When the laptop market overtook the desktop market, blue tech inc., a leader in desktop technology, was left at a competitive di
Sedaia [141]

In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>


We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions  

under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression  diseconomies.

5 0
3 years ago
LO 2.2Which of the following are prime costs?
sesenic [268]

Answer:

OPTION D: Direct Labor and Direct Material

Explanation:

Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS .

                 Prime Cost = Direct Material Cost + Direct Labor Cost

Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.

4 0
3 years ago
Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest
OverLord2011 [107]

Answer:

The money you will have is $98020.

Explanation:

It is given that grandparents deposit $2,000 each year on birthday and the account pays 7% interest compounded annually also the time is 21 years.

we will use the compound interest formula  A=P (1 + \frac{r}{100})^{t}.

For the first birthday the amount after 21 yr will be:

A=2000(1+\frac{7}{100})^{21}

Similarly for the second birthday amount after 20yr will be:

A=2000(1+\frac{7}{100})^{20}

likewise, the last compound will be:

A=2000(1+\frac{7}{100})^1

The total value of such compounding would be :

\text {Total amount}=2000(1+\frac{7}{100})^{21}+2000(1+\frac{7}{100})^{20}...2000(1+\frac{7}{100})^{1}

\text {Total amount}=2000[(1+\frac{7}{100})^{21}+(1+\frac{7}{100})^{20}...(1+\frac{7}{100})^{1}]

\text{Total amount} \approx 2000(48.01)

\text{Total amount} \approx 96020

The total amount just after your grandparents make their​ deposit  is:

≈($96020+2000)

≈$98020

Hence, the money you will have is $98020.

4 0
3 years ago
Other questions:
  • A fixed cost: Does not change with changes in the volume of activity within the relevant range. Requires the future outlay of ca
    13·1 answer
  • While training for her new job as a pharmaceutical sales representative, Valerie spent several days shadowing an experienced com
    10·1 answer
  • What is an externality? how do externalities relate to socially optimal quantity?
    7·1 answer
  • X minus Industries manufactures 3minusD printers. For each​ unit, $ 3 comma 500 of direct material is used and there is $ 2 comm
    14·1 answer
  • If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent, then the inflation rate is Group of answer
    14·1 answer
  • When a party purchases an app from the author, the copyright transfers from the author to the buyer. What is this is called
    15·1 answer
  • I had eaten plenty true or false​
    14·1 answer
  • . Research: Using reputable and recently published internet sources, research the
    14·1 answer
  • Which is considered to be a coincident economic indicator? a stock market prices b corporate profits c index of industrial produ
    15·1 answer
  • One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True or false?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!