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LuckyWell [14K]
3 years ago
4

A company purchased a weaving machine for $273,400. The machine has a useful life of 8 years and a residual value of $15,000. It

is estimated that the machine could produce 760,000 bolts of woven fabric over its useful life. In the first year, 110,000 bolts were produced. In the second year, production increased to 114,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Business
1 answer:
Svetlanka [38]3 years ago
6 0

Answer:

Annual depreciation= $38,760

Explanation:

<u>To calculate the depreciation expense, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(273,400 - 15,000)/760,000]*114,000

Annual depreciation= $38,760

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When a transnational company has at least one headquarters in the country their operate, it will help the operations of it's business in that country, It will help the organization in fast decision making, it will help the organization to run it's business in different ethics in accordance with the country it operates, it will help the organization in it's mode of employment. The organization can have a corporate headquarters in the country of it's origin, where the Managing directors of each headquarters come to discuss the business of the company.

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4 years ago
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3 years ago
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