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Jet001 [13]
3 years ago
5

Holly, Inc. has a building that originally cost $562,500. Holly expects to be able to sell the facility for $160,500 at the end

of its useful life. The balance of the related Accumulated Depreciation account is $387,000. The residual value of the facility is:__________.
A. $226,500.
B. $175,500.
C. $160,500.
D. $402,000.
Business
1 answer:
storchak [24]3 years ago
6 0

Answer:

C. $160,500.

Explanation:

Depreciation: The depreciation is an expense that shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement. It is a non-cash item that does not affect the cash balance.

The formula to compute the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ useful life

The original cost is the purchase value of the assets

The residual value is the salvage value at the end of its useful life

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Answer:

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4 0
3 years ago
Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h
Nat2105 [25]

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

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3 years ago
According to the Census Bureau, in October 2016, the average house price in the United States was $27,258. 6 years earlier, the
krek1111 [17]

Answer:

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5 0
3 years ago
Production and sales estimates for April for Crane Co. are as follows: Estimated inventory (units), April 1 19,000 Desired inven
melisa1 [442]

Answer:

a. 11,000 units

Explanation:

Particulars                                                               Amount

Expected Sales (units)                                            12,000 [3000+4750+4250]

Add: Ending inventory                                          18,000

Less; Beginning inventory                                      <u>19,000</u>

Number of units expected to be manufactured <u>11,000 </u>

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3 years ago
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