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ddd [48]
4 years ago
11

Which of the following statements about depreciation is correct? When depreciation expense is incurred, cash balances are reduce

d. Depreciation reduces the book value of assets. Depreciation expense does not affect net income. Depreciation is subtracted from cost of goods sold to calculate net income.
Business
1 answer:
Ksju [112]4 years ago
6 0

Answer:

The correct answer is letter "B": Depreciation reduces the book value of assets .

Explanation:

Depreciation shows how much and the value of the assets was used up. This also aims to balance an asset's cost to the revenue that the asset has helped the business gain. Used as an income tax deduction, depreciation calculations offer businesses an annual allowance for the use and deterioration of tangible (physical) assets.

<em>Depreciation reduces the book value of assets because, after the depreciation calculation is done, the amount computed decreases the current value of the asset it represents.</em>

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If his credit card utilization is 35% and his balance is $455 his max would be $1300
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3 years ago
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $86,670. The equlpment was expect
liberstina [14]

Answer:

purchase cost $86,670

useful life 3 years, 6,480 operating hours

residual value $2,430

a. the straight-line method

depreciation expense per year = ($86,670 - $2,430) / 3 = $28,080

  • depreciation year 1 = $28,080 x 9/12 = $21,060
  • depreciation year 2 = $28,080
  • depreciation year 3 = $28,080
  • depreciation year 4 = $28,080 x 3/12 = $7,020

b. units-of-output method.

depreciation per hour =  ($86,670 - $2,430) / 6,480 = $13

  • depreciation year 1 = 1,200 x $13 = $15,600
  • depreciation year 2 = 2,300 x $13 = $29,900
  • depreciation year 3 = 1,900 x $13 = $24,700
  • depreciation year 4 = 1,080 x $13 = $14,040

c. the double-declining-balance method.

  • depreciation year 1 = 2 x 1/3 x $86,670 x 9/12 = $43,335
  • depreciation year 2 = $14,445 + (2 x 1/3 x $28,890 x 9/12) = $28,090
  • depreciation year 3 = $4,815 + (2 x 1/3 x $9,630 x 9/12) = $9,630
  • depreciation year 4 = $1,605 + ($3,210 - $2,430) = $2,385
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3 years ago
What is one advantage that big corporations had over small businesses
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They had money. Money equals influence power.
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4 years ago
Read 3 more answers
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint pr
SashulF [63]

Answer:

Incremental loss of Spock = $19,800

Incremental profit of Uhura = $12,300

Incremental profit of Sulu = $94,200

Explanation:

Note: See the attached excel for the determination the incremental profit or loss that each of the three joint products.

In the attached excl file, the following formulae are used:

a. Incremental sales value = Sales value of processed product -  Sales value at split off point

b. Incremental profit (loss) = Incremental sales value - Costs to process further

Download xlsx
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3 years ago
Write the president (me) a memo explaining your reasoning and suggest a new pricing strategy. (You can decide what kind of busin
slamgirl [31]

Answer:

To: President

From: General Manager Finance

Subject : Pricing strategy for existing products

Date : 20th June 2021

As you are aware about the declining sales of our various products. The main reason identified by our sales and marketing analysts for the declining sales is over pricing of various products. There have been increase competition in the market and new entrants have adopted strategy of economies of scale which enable them to sell the product at low price and gain market share. There we need to cut our costs and then reduce our profit margin to boost sales of our products. We can be profitable from volume sales strategy.

If you need to discuss further on this matter, we can arrange a meeting with head of different department to discuss the business strategy in more detail.

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