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mr Goodwill [35]
3 years ago
6

Whispering Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emp

loyee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the- Years'-Digits Double-Declining- Balance 1 $10,980 $18,300 $24,400 2 10,980 14,640 14,640 3 10,980 10,980 8,784 4 10,980 7,320 5,270 5 10,980 3,660 1,806 Total $54,900 $54,900 $54,900
Business
1 answer:
leva [86]3 years ago
7 0

Solution:

The basis of the straight line is a depreciation and amortization process estimate. That is the best way to calculate the loss of value of a capital asset over time also known as direct depreciation.

The straight line basis is determined by dividing by either the number of years it is planned to use the variations between the cost of such an asset and the estimated recovery value.

--- use double-declining value year 1

(1/5) x 2 = 0.40

--- Cost x 40% = 22400

--- 22400 / 0.40 = 56,000

Savage value:

56,000 - 50,400 = 5,600

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Shen lives in Dallas and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of thi
Elis [28]

Solution :

1.

The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.

The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.

The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.

The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.

2. Paolo's accounting profit can be calculated by :

  Accounting profit = revenue - explicit cost

                                 = 851,000 - 476,000 - 281,000

                                = $ 94,000

3. Paolo's economic profit is :

   Economic profit = accounting profit - implicit profit

                             = 94,000 - 34,000 - 71,000

                              = -11,000

6 0
2 years ago
Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost of €512,100. The U.
Zolol [24]

Answer:

The importer accepts this price, so his bank will <u>debit</u> the importer's account in the amount of <u>$500000</u>

Explanation:

Debiting an account removes money from the account. Crediting an account adds money to the account.

The bank will  therefore <em>debit</em> his account because the money will be taken out and paid to the exporter.

The amount that the importer pays in dollars can easily be calculate as:

€512,100 / €1.0242 = $500000

5 0
3 years ago
An economic model can be defined as___________a. a testable claim which can be evaluated with proper data.b. a representation of
Radda [10]

Answer:

b. a representation of a theory or a part of a theory

Explanation:

A model is different from theory because is a more applied and empirical representation of a situation while the theory is more abstract. An economic model is a simplified prediction of a complex and real economic behavior, it uses variables to analyze different scenarios, it also uses logical and quantitative relationships between economic processes, is usually mathematical. <em>The results of these models can lead to a new investigation, theorization or to prove theories.</em>

I hope you find this information useful and interesting! Good luck!

5 0
3 years ago
Which of the following is an example of a franchise
boyakko [2]

Answer:

Sonic Fandom

Explanation:

4 0
2 years ago
Shelley is the Chairman of the Federal Reserve. She is in charge of making decisions for the Fed that will impact the economy in
olga nikolaevna [1]

Answer: a. increase the reserve requirement

Explanation:

With such an inflation rate, the economy is probably producing at a point higher than its potential GDP which means that it is overheated. It therefore needs to be controlled and brought back down to its potential level.

Restrictive monetary policy - reducing money supply - would be a way to do this. The Fed can do this via a variety of ways but one way is by raising the reserve requirement. This would require banks to leave more deposits with the Fed. As these cannot then be lent to the public, money supply will decrease.

8 0
2 years ago
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