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ikadub [295]
3 years ago
9

Item 3Item 3 Cutter Enterprises purchased equipment for $87,000 on January 1, 2018. The equipment is expected to have a five-yea

r life and a residual value of $4,800. Using the sum-of-the-years'-digits method, depreciation for 2018 and book value at December 31, 2018, would be
Business
1 answer:
Rus_ich [418]3 years ago
8 0

Answer:

$27,400 and $59,600

Explanation:

The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:

Depreciation expense is

= (Purchase cost - residual value) × useful life ÷ sum of years

= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)

= $27,400

And, the book value is

= Purchase cost - depreciation expense

= $87,000 - $27,400

= $59,600

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A producer of beverages and snack foods wants to market its products to the 14-to-22-year-old demographic, providing incentives
yanalaym [24]

Answer:

b.digital marketing

Explanation:

According to my research, in 2019 it is calculated that about 88% of young adults aged 14-22 years old own a cellphone. This being the case, the smartest direct marketing to choose would be "digital marketing". This is because it will reach the vast majority of the 14-22 year old demographic as well as given them the ability to respond instantly to the time sensitive offers through their internet connected devices.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Taylor Music Center has 5 CD players on hand at the balance sheet date. Each costs $400. The current replacement cost is $380 pe
babymother [125]

The correct answer is $380 per unit.

The lower-of-cost-or market rule requires that you report the lower value of either the purchase price or current market price of items in inventory. In this case the current market price is lower, so it should be used when calculating the value of inventory.

8 0
3 years ago
For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN WHY. a. In the long-run the t
Colt1911 [192]

Answer:

a.

FALSE

<em>The argument above is in part inaccurate. In the long run, the monopoly dominant firms gain no economic profit at the profit generating production as their LRAC= LRAR at. </em>

The firm is not effective economically (productively) though.

A monopolistically dominant firm is not successful effective because it does not achieve the average cost curve at the minimum level. The difference between supply and supply of the equilibrium at the minimum average cost is called overcapacity.

b.

FALSE

The monopolist has the power to make the price to maximize the profit. The monopolist, however, always has to respect demand rule of law. Its AR-curve is a sloping downward curve.

<em>It indicates that if the monopolist decides to increase production, he will have to lower the price. It shows that to increase income, the monopolist can set its price but can not set any price.</em>

c.

FALSE

The shut down point for reasonably competitive firms is Price= AVC.

When the price falls below the average cost of the product, otherwise the business must shut off.

<em>Otherwise, the business must continue to manufacture until the price falls below the average cost of the product. It will still deliver, even if the average income or price is below the average output.</em>

7 0
3 years ago
Read 2 more answers
Reba owns a convertible bond issued by Macrofirm, Inc. The bond has a par value of $1,000, a conversion ratio of 40, a coupon ra
denis23 [38]

Answer:

As the market price of common stock has risen and it is presently at $35 per share, so Reba will likely to find it attractive to convert the bonds into common stock.

Explanation:

Reba having a bond with a value of $1,000 which will get matured in the year 2019 but at present the market price of common stock has risen to $35 per share so Reba might get attract to convert the bond into common stock. As, for bond she have to wait till it matures but the market price of common stock is constantly rising for three years. Therefore, it might attract her.

Therefore, the correct option is A.

7 0
3 years ago
On March 1, the three classmates opened a checking account for the company at a local bank. They each deposited $20,000 in excha
oksano4ka [1.4K]

Answer:

Explanation:

Account: Cash Account  Dollar amount: $70,000

Account: Paid-in capital  Dollar amount: $70,000

The amount is shown below:

= Deposit amount × number of classmates + purchase of stock

= $20,000 × 3 + $10,000

= $60,000 + $10,000

= $70,000

Only this two account is required i.e cash account and the paid-in capital account

8 0
3 years ago
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