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AlladinOne [14]
3 years ago
5

Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cas

h of $150,000. The equipment has an estimated residual value of $10,000 and an expected useful life of 10 years. At the beginning of 2017, Sadler concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero. Sadler uses the straight-line method for depreciation.
Prepare the journal entry to record depreciation on the equipment for 2016.
Business
1 answer:
il63 [147K]3 years ago
6 0

Answer:

The journals entry to record depreciation on the equipment for 2016 will be:

Debit Depreciation expense $14,000

Credit Accumulated depreciation $14,000

<em>(To record depreciation expense for Year 2016)</em>

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.

The change in the estimate in Year 2017 will not affect the depreciation expense for 2016 based on the previous parameters,

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individuals that have special voting rights owns a special class of stock called classified stock.

The classified stock refers to class of common stock that comes with special privileges like dividend rights or enhanced voting rights.

Usually, these stock are issued/owned by individual that started or co-start the business.

The classified stock is used to ensure the company's founders maintain its control over the establish company even without owning the majority of the common stock.

Therefore, the individuals that have special voting rights owns a special class of stock called the classified stock.

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6 0
2 years ago
Michael is a U.S. citizen who currently lives in St. Louis. He hires John, an authorized vintage car broker (also a U.S. citizen
Andrei [34K]

Answer:

The correct answer is C. Only John's commission will be counted in the U.S.

Explanation:

When developing a job that generates income in St. Louis, it is considered that any sale you make because you are within the United States is taken into account within the GNP. For its part, the country that produced the car should consider it as GDP because it is part of the production carried out in a different jurisdiction.

3 0
2 years ago
How does having a menu that is uniform around the country provide mcdonald's with economies of scale? how is menu planning made
slega [8]

Yes, a uniform menu allows for centralized planning and distribution without having to many different factories/suppliers.

Menu:

  • If the food menu is consistent, it can be said that economies of scale would be in effect. This is due to the fact that the fixed cost per unit actually gets to decrease, which then leads to a decrease in the average cost of production per unit as the sales volume keeps on increasing, giving the company a cost advantage and resulting in economies of scale. However, when extending to other nations, the menu planning becomes more difficult because local preferences and cultural norms vary widely. For example, beef is not allowed in India, thus the menu must be designed accordingly.
  • McDonald's benefits from economies of scale since customers can place larger orders to reduce the price of their food when there is a standard menu across the nation. The more of a good is produced, the lower the per-unit fixed cost is since these expenses are spread across a larger number of goods, according to Investopedia. Additionally, everywhere you travel in the nation, people are aware of what is on their menu.

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6 0
1 year ago
What are free goods?
nadezda [96]

they are a food or type of necessity given at no cost or profit

7 0
3 years ago
Mr. Bell buys a home for an unspecified amount. He pays a down payment of $20,000 and finances the remainder for 15 years with l
vampirchik [111]

Answer:

$146,105.22.

Explanation:

First, find the monthly interest rate from an effective rate of 6%

Rate = (1.06) ^ (1/12) - 1 = 0.00486755

Present value = 1692 [1 - (1.00486755) ^ - (180-100)] / 0.00486755 = 111,894.78  

At closing = 258,000 - 111,894.78 = $146,105.22

8 0
3 years ago
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