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
kakasveta [241]
2 years ago
12

During the current year, Central Auto Rentals purchased 60 new automobiles at a cost of $15,000 per car. The cars will be sold t

o a wholesaler at an estimated $6,000 each as soon as they have been driven 45,000 miles. Central Auto Rentals computes depreciation expense on its automobiles by the units-of-output method, based on mileage.
a. Compute the amount of depreciation to be recognized for each mile that a rental automobile is driven.
b. Assuming that the 60 rental cars are driven a total of 1,610,000 miles during the current year, compute the total amount of depreciation expense that Central Auto Rentals should recognize on this fleet of cars for the year.
Business
1 answer:
borishaifa [10]2 years ago
4 0

Answer:

a. $0.20

b. $322,000

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset .

The amount of depreciation to be recognized for each mile that a rental automobile is driven

= ($15,000 - $6,000)/45,000

= $9,000/45,000

= $0.20

Total millage expected of the 60 cars before disposal

= 60 * 45,000 miles

= 2,700,000 miles

The total amount of depreciation expense that Central Auto Rentals should recognize on this fleet of cars for the year

= 1,610,000/2,700,000 * ($9,000 * 60)

= $322,000

You might be interested in
Morgan Co. signs a $50,000 noninterest-bearing 5-year note payable for goods purchased from Xelco Industries. The appropriate ra
riadik2000 [5.3K]

Answer:

$31,046

Explanation:

You take the $50,000 and divide it by 1.10^5 = $31,046

5 0
3 years ago
The home health nurse teaches an elderly client with dysphagia some strategies to help limit repeated hospitalizations for aspir
Effectus [21]

Answer:

1. "I have to remember to raise my chin slightly upward when I swallow."

7 0
3 years ago
Juan found a supplier that costs 20% less than all other suppliers who provide the same quality this is an example of
grigory [225]

Answer:

hello the answer is A

Explanation:

hope this helps:))))

5 0
3 years ago
Suppose the Imperial Galactic Bank has received $1,000 of deposits and all banks face a required reserve ratio of 10 percent. Wh
Bumek [7]

Answer:

Money Multiplier= 1/ reserve ratio = 1/10% = 10

Change in Money Supply = Change in Reserves * Money Multiplier

= 1,000 * 10 = 10,000

So, option d is the correct option.

4 0
3 years ago
Paraldehyde is an effective cns depressant but is probably not currently used because:
Sonja [21]

The reason why paraldehyde is not currently used is because of its side effects or down sides to the patients using it such as it provides a noxious taste that patients dislikes and it was able to provide an odor with the patient’s breath that isn’t pleasant. 

6 0
3 years ago
Other questions:
  • The JPY/AUD spot exchange rate is 82.42, the JPY interest rate is 0.15%, and the AUD interest rate is 4.95%. If the interest rat
    12·1 answer
  • What causes the economy to move from its short-run equilibrium to its long-run equilibrium? the government must increase spendin
    12·1 answer
  • On the first day of the fiscal year, Hawthorne Company obtained an $88,000, 7-year, 5% installment note from Sea Side Bank. The
    6·1 answer
  • Finished goods that have not yet shipped to
    10·2 answers
  • You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a lo
    10·1 answer
  • Kathleen just received a bonus from EG. She is excited because her dad started his career with EG. If her bonus of $300,000 is e
    13·2 answers
  • The elements of professionalism contains_ attributes.
    5·1 answer
  • Olivia contracts to buy a refrigerator from a Prairie State Appliance store with the price to be paid in monthly installments. L
    6·1 answer
  • Gdp most commonly used measurement
    11·1 answer
  • Do you want to buy mah flamago milk?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!