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
storchak [24]
3 years ago
15

Cutter Enterprises purchased equipment for $54,000 on January 1, 2021. The equipment is expected to have a five-year life and a

residual value of $3,300. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be:
Business
1 answer:
ira [324]3 years ago
4 0

Answer:

the depreciation expense for the year 2021 and the book value for the year 2021  is $21,600 and $32,400 respectively

Explanation:

The computation of the depreciation expense for the year 2021 and the book value for the year 2021 under double-declining method is given below:

The depreciation expense is

= $54,000 × 1 ÷ 5 × 2

= $21,600

Now the book value is

= $54,000 - $21,600

= $32,400

hence, the depreciation expense for the year 2021 and the book value for the year 2021  is $21,600 and $32,400 respectively

You might be interested in
Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills 4.5 0 Stock P 8.
Jlenok [28]

Answer:

a. Standard deviation of the portfolio = 7.00%

b(i) Standard deviation of the portfolio = 30.00%

b(ii) Standard deviation of the portfolio = 4.00%

b(iii) Standard deviation of the portfolio = 21.40%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Here are returns and standard deviations for four investments.

                                  Return (%)           Standard Deviation (%)

Treasury bills                4.5                                    0

Stock P                          8.0                                   14

Stock Q                        17.0                                  34

Stock R                       21.5                                    26

Calculate the standard deviations of the following portfolios.

a. 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.)

b. 50% each in Q and R, assuming the shares have:

i. perfect positive correlation

ii. perfect negative correlation

iii. no correlation

(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

The explanation to the answer is now provided as follows:

a. Calculate the standard deviations of 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.)

Since there is no correlation between Treasury bills and stocks, it therefore implies that the correlation coefficient between the Treasury bills and stock P is zero.

The standard deviation between the Treasury bills and stock P can be calculated by first estimating the variance of their returns using the following formula:

Portfolio return variance = (WT^2 * SDT^2) + (WP^2 * SDP^2) + (2 * WT * SDT * WP * SDP * CFtp) ......................... (1)

Where;

WT = Weight of Stock Treasury bills = 50%

WP = Weight of Stock P = 50%

SDT = Standard deviation of Treasury bills = 0

SDP = Standard deviation of stock P = 14%

CFtp = The correlation coefficient between Treasury bills and stock P = 0.45

Substituting all the values into equation (1), we have:

Portfolio return variance = (50%^2 * 0^2) + (50%^2 * 14%^2) + (2 * 50% * 0 * 50% * 14% * 0) = 0.49%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (0.49%)^(1/2) = (0.49)^0.5 = 7.00%

b. 50% each in Q and R

To calculated the standard deviation 50% each in Q and R, we first estimate the variance using the following formula:

Portfolio return variance = (WQ^2 * SDQ^2) + (WR^2 * SDR^2) + (2 * WQ * SDQ * WR * SDR * CFqr) ......................... (2)

Where;

WQ = Weight of Stock Q = 50%

WR = Weight of Stock R = 50%

SDQ = Standard deviation of stock Q = 34%

SDR = Standard deviation of stock R = 26%

b(i). assuming the shares have perfect positive correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = 1

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * 1) = 9.00%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (9.00%)^(1/2) = (9.00%)^0.5 = 30.00%

b(ii). assuming the shares have perfect negative correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = -1

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * (-1)) = 0.16%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (0.16%)^(1/2) = (0.16%)^0.5 = 4.00%

b(iii). assuming the shares have no correlation

This implies that:

CFqr = The correlation coefficient between stocks Q and = 0

Substituting all the values into equation (2), we have:

Portfolio return variance = (50%^2 * 34%^2) + (50%^2 * 26%^2) + (2 * 50% * 34% * 50% * 26% * 0) = 4.58%

Standard deviation of the portfolio = (Portfolio return variance)^(1/2) = (4.58%)^(1/2) = (4.58%)^0.5 = 21.40%

8 0
3 years ago
PLZ HELP ASAP FOR ECON !!!
Alja [10]

Answer:

it decreased

Explanation:

the graph shows that the line went down therefore showing it decreased

3 0
2 years ago
What is the purpose of cost accounting iss?
vitfil [10]

The main purpose of cost accounting is to find out the cost of the various processes in the business so that selling prices can be fixed appropriately.

<h3>What is cost accounting?</h3>

This is an accounting method that allows companies to find out the cost of various processes and transactions they embark on.

Knowing these costs will enable the company to know the price it can charge on goods so that it can recoup these costs and make profits.

Find out more on cost accounting at brainly.com/question/24516871.

#SPJ12

3 0
1 year ago
Has your idea of yourself five years from now changed in any way since beginning this course? If so, describe the reasons. If no
sesenic [268]

Answer:

This is a personal question man

Explanation:

Im sorry, but I can't answer personal questions

Sorry

6 0
3 years ago
Trey has $25,000 in savings, two new laptops, two laser printers, and a variety of quality office furniture that he's using to s
stealth61 [152]

Answer: Equity financing

Explanation:

When using Equity financing, the owners of the business are investing either their personal assets into the company or selling shares in the company and raising money from that.

Equity financing gives the person who invested an ownership portion in the company. The main difference between equity financing and leveraged financing is that with equity financing, you are not forced to make payments to the investors every period.

4 0
2 years ago
Other questions:
  • How do you see your housing needs and goals changing over time?<br> This is an essay question.
    8·1 answer
  • True or false? an inventory only needs to be conducted for clinical supplies used for patient care in the medical office.
    8·1 answer
  • Is there a trade-off between standardization and innovation? how are the two related in most companies?
    13·1 answer
  • Securities issued by all of the following organizations are exempt from the registration requirements of the 1933 Securities Act
    12·1 answer
  • 1.
    14·1 answer
  • Glamour Gal, a popular women's cosmetics company is gaining popularity among younger women. Differentiating itself from the sea
    13·1 answer
  • A winning strategy is one that results in a company becoming the dominant industry leader. fits the company's internal and exter
    10·1 answer
  • The Ethical Dissonance Model helps to evaluate: a. Whether the organization sets an ethical tone at the top b. Whether the organ
    15·1 answer
  • Rita has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the orde
    9·1 answer
  • Butler Corporation is considering the purchase of new equipment costing $78,000. The projected annual after-tax net income from
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!