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tatyana61 [14]
3 years ago
6

At the beginning of 2020, Earth Co purchased a machine at a cost of $40,000. Earth Co expects the machine to remain useful for e

ight years (5,000 machine hours) and to have a residual value of $5,000. Earth Co expects the machine to be used 1,200 hours the first year. Using straight-line depreciation compute the depreciation expense and determine net book value. Depreciation Expense $4,375, net book value $35,625 Depreciation Expense $8,400, net book value $31,600 Depreciation Expense $10,000, net book value $30,000 Depreciation Expense $0, net book value $40,000
Business
1 answer:
emmasim [6.3K]3 years ago
8 0

Answer:

Option B Depreciation Expense $8,400, net book value $31,600

Explanation:

The depreciation can be calculated using the following formula:

Depreciation For Y1 = (Cost - Residual Value)* Hours consumed / T. Hours

Here

Cost is $40,000

Residual Value is $5,000

Hours consumed are 1,200 hours

Total Hours are 5,000 hours

Now by putting values, we have:

Depreciation For Y1 = ($40,000 - $5,000) * 1200 / 5000

Depreciation For Y1 = $8,400

Now Net Book Value can be calculated using the following formula:

Net Book Value = Cost  - Accumulated Depreciation

Net Book Value = $40,000 - $8400 = $31,600

Hence the right answer is option B.

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andrezito [222]

Answer:

E. Profit motive

Explanation:

Profit motive can be defined as the intention, motivation or desire to form a business or engage in business ventures so as to generate financial (monetary) gains.

This ultimately implies that, profit motive is a desire for monetary gains (profits) which motivates a business owner to engage in the sales of finished goods or services.

Hence, profit motive is the premise on which all businesses are built on because the ultimate goal of every business is to achieve financial gains.

In this scenario, the computer accessories that Javier is making and selling are bringing in a substantial amount of money for him. Inspired by this success, he decides to hire two people and expand his business.

Thus, this is an example of profit motive.

4 0
3 years ago
Wiggins Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock
Ugo [173]

Answer:

Book value par common share will be $19.6

Explanation:

We have given number of preferred stock = 1000

Value of preferred stock = $10 par preferred stock

So preferred Stock = 1000 x $10 = $10000

Total Stockholder's equity = $500000

Thus Common stock value = $500000 - $10000 = $490000

Total number of common stock = 25000 shares

So the book value per common share is = \frac{490000}{25000}=19.6

5 0
3 years ago
Changes in accounting estimates are: Multiple Choice Extraordinary items. Accounted for with a cumulative "catch-up" adjustment.
Tom [10]

Answer:

The answer is D. Accounted for in current and future periods.

Explanation:

A change in accounting estimate is an adjustment of the carrying value of an asset or liability arising from reassessing the expected future economic benefits and obligations associated with that asset or liability.

Changes in accounting estimates must be shown in the accounting period in which the estimates are revised and periods after i.e accounted for prospectively. Example is a change in useful life and salvage value of a fixed asset

4 0
3 years ago
Determine if the statement is true or false.
o-na [289]

That statement is true

In united states, there are only two things that considered as a primary source of criminal law.

The first one is the court ruling that is made by both state and supreme courts.  The second one is the legislation that are passed by the representatives in state and federal government.

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3 years ago
In which of these instances is demand said to be perfectly inelastic?
Murljashka [212]

Answer:

b. A decrease in price of 2% causes an increase in quantity demanded of 0%.

Explanation:

By definition, the demand is said to be <em>perfectly inelastic</em> when no matter how much the price of a good changes, you will still be consuming the same exact amount as you did before the price changed.

Keeping this in mind, we know that the price may increase or decrease in 2%, but the demanded quantity will not have any change at all (people won't consume less or more).

So, now we know that the correct answer is <em>b, </em>because a decrease in price of 2% causes an increase in quantity demanded of 0% - in other words, people's purchase decision weren't influenced by the change in the price.

5 0
3 years ago
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