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
Which of the following statements regarding the direct and indirect methods of reporting cash flow from operating activities is
erica [24]

Answer:

a) although both methods result in the same net increase or decrease in cash for the year, net cash flow from operating activities will be different under the two methods

Explanation:

Using the indirect method, computation of cash flow from operating activities begins with net income as shown in the income statement. The FASB also permits both methods but has expressed a preference for the direct method and the direct method shows the specific cash inflow and outflows for each operating activities of the business.

This option that does not align with the differences between the 2 methods is that the cash flow reported under direct and indirect method for operating activities would always remain the same notwithstanding the method used.

3 0
3 years ago
Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion
bazaltina [42]

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

8 0
2 years ago
Before moving out of their apartment, Brad and Kim Westgate decided to have their carpets cleaned by Service Master, a company s
arlik [135]

Answer:

2) intangibility

Explanation:

A service can be defined as a collection of intangible goods that are being offered by a service provider to the end user in order to meet their needs or requirements. Thus, it is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed by the service takers.

This scenario best illustrates the intangibility of services.

7 0
3 years ago
What does partnership form of business imply
stiks02 [169]
The answer should be two or more and central
7 0
3 years ago
Read 2 more answers
What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real
matrenka [14]

Answer:

Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.

For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.

Initial outlay $100

NCF year 1 = $40

NCF year 2 = $40

NCF year 3 = $40

Using the real discount rate, the NPV = $8.93

Using the nominal discount rate, the NPV = -$0.53

6 0
2 years ago
Other questions:
  • A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production
    14·1 answer
  • Managers who establish effective goals can enhance the performance of their employees and of their company. The manager in the s
    15·1 answer
  • The building code of River City requires that elevators in public buildings be inspected every nine months. Hal did not have the
    13·1 answer
  • Q 10.29: The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. I
    14·1 answer
  • Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation r
    5·1 answer
  • Select all the statements that are true about Secondary Markets only.
    5·1 answer
  • What are the three reasons that companies import?
    5·1 answer
  • Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?
    8·1 answer
  • The reason that quantum effects are not observable in the everyday, macroscopic world, is because:_____.
    13·1 answer
  • a business wants to evaluate how much they're spending on their customers, versus how much their customers go on to spend. if th
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!