Answer:
Depreciation for year 3 = $115518
BV = $57798
Explanation:
The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.
In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:
33.33% for the first year
44.45% 2nd year
14.81% 3rd year
7.41% 4th year
We have been asked to determine 3rd years' depreciation and book value, determined as follows:
Depreciation year 1: $780000 33.33% = $259974
Depreciation year 2: $780000 44.45% = $346710
Depreciation year 3: $780000 14.81% = $115518
So the depreciation for year 3 = $115518
The book value is calculated as follows:
<em>Book value = cost - accumulated depreciation</em>
BV = $780000 - $722202
BV = $57798
In terms of smart financial planning, the reason why Christie makes changes to her budget <span>at the end of every month is because s</span>he is reviewing her goals at the end of every month and consequently, aligning the budget to work toward them.
<span>
<span><span>Depreciation is a </span>sunk cost. </span></span>It is the value lost on an asset
after consumption. In accounting, depreciation cost qualifies as a sunk cost
because it is already lost and cannot be recovered. For that reason, it is
correct to ignore depreciation cost when determining the future course of a
business.
Answer:
Prime costs= $480,000
Explanation:
Giving the following information:
Grin produced 4,000 cameras with the following costs:
Direct materials $400,000
Direct labor 80,000
Manufacturing overhead 320,000
To calculate the prime costs we need to use the following formula:
Prime costs= direct material + direct labor
Prime costs= 400,000 + 80,000= $480,000
Answer:
<em>c. limited partner.</em>
Explanation:
<em>In the presented scenario, Logan Nettles should become a</em> <u>limited partner</u>.
Limited partner is the partnership in which one limited partner is been required compulsory. This is slightly different from general partnership. In this profit of the business is limited and the debt and dis-advantage on the amount of investment is also limited.
So we can see that Logan is also concerned about his disadvantage which is known as liability.
