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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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If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers
vesna_86 [32]

Answer:

C) breaks even.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

8 0
3 years ago
Read 2 more answers
What is the difference between a direct distribution channel and an indirect
AveGali [126]

The use of intermediaries is the primary difference between the two.

Explanation:

Direct distribution channel is one in which the consumer is directly connected to the manufacturer and there is no use of a distribution system that is separate from them and there are no intermediaries.

The contact between the two is direct.

To the contrary in an indirect  distribution channel there is no direct connection between the manufacturer and the person who is actually buying the product and the business is being mediated by the middlemen.

8 0
3 years ago
When putting together your personal budget, you find that your budget has a deficit. Which is the BEST way to balance your budge
ki77a [65]

Answer:

The correct answer is letter "C": Cut your expenses by an amount greater than your deficit.

Explanation:

In case there is a deficit in your budget, it means your expenses are higher than your net income. An adjustment must be made in such circumstances. To bring back the balance in your budget, <em>you should cut your expenses by an amount higher than the amount of the deficit</em>. Otherwise, you could increase your income but keeping your expenses at the same level.

3 0
3 years ago
You need a 35-year, fixed-rate mortgage to buy a new home for $295,000. Your mortgage bank will lend you the money at an APR of
Anika [276]

Answer:

$434,780.69

Explanation:

The computation of the large the ballon payment would be is determined by using the future value formula i.e. to be shown in the attachment

Provided that

Present value = $295,000

Rate of interest = 5.9% ÷ 12 months  = 0.49166%

NPER = 35 years × 12 months = 420 months

PMT = $1,350

The formula is shown below:

= -FV(Rate;NPER;PMT;-PV;type)

So, after applying the above formula, the future value is $434,780.69

8 0
3 years ago
Which of the following statements supports multiple sourcing:
Makovka662 [10]

Answer:

Concerns exist about supplier capacity for future volume.

Explanation:

The multisourcing is a method in which the supplier base is expanded increasing the actual number of suppliers, because the needs of the company are increasing.

Advantages:

-Alternative sources of materials in case of delivery stoppage by a supplier.

-Reduced probability of bottlenecks due to insufficient production capacity to meet peak demand.

- Increased competition mong suppliers leads to better quality, price, delivery, product innovation and buyer´s negociation power.

-More flexibility to reat to unexpected events that could endanger supplier´s capacity.

Disadvantages:

-Reduced efforts by supplier to match buyer´s requirements.

-Higher cost for the purchasing organization (greater number of orders, telephone calls, records, and so on).

3 0
3 years ago
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