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Crank
3 years ago
14

On June 1, 2019, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for person

al use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2020. a.$4,704 b.$3,570 c.$10,100 d.$3,290
Business
1 answer:
worty [1.4K]3 years ago
4 0

Answer:

a.$4,704

Explanation:

Depreciation rate applicable for 2nd year as per MACRS 5 year class property = 32%

So, Irene cost recovery deduction = $21,000 * 32% * 70% = $4,704

Hence, the cost recovery deduction for Irene in 2020 is $4,704.

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A firm produces bicycles using two inputs: bicycle frames (F) and bicycle wheels (W). By definition, one bicycle has 2 wheels an
grin007 [14]

Answer:

C(100) = (75 x 100) + (200 x 100) = $27,500

Explanation:

the initial cost function of producing bikes is:

C(x) = 75F + 100W

the initial cost to produce 1 bike = $75 + $100 = $175

if the cost of wheels increase to $100 each, then the cost function is:

C(x) = 75F + 200W

in this case, there is not much to calculate since every bicycle must have 1 frame and 2 wheels, that means that in order to produce 100 bicycles you will necessarily need 100 frames and 200 wheels. Labor is not considered in this cost function, so any cost minimization strategy is limited to using the minimum amount of parts:

C(100) = (75 x 100) + (200 x 100) = $27,500

7 0
3 years ago
) In April of 2019, Mike acquired a machine for $30,000 to use in his business. It is the only plant asset he purchased this yea
yan [13]

Answer:

Option $6,000

Explanation:

Data provided in the question:

Cost of the machine acquired = $30,000

Classified useful life = 5 years property

Now,

The MARCS rate for 5 years property, the depreciation rate is 20%

Therefore,

The depreciation for the year 2019 will  be

= 20% of the Cost of the machine acquired

= 0.20 × $30,000

= $6,000

Hence,

Option $6,000

7 0
3 years ago
Question 1 (2 points)
inn [45]

Answer:

True

Explanation:

The principal purpose of building a business is to make profits.  A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.

Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.

8 0
3 years ago
SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a cap
iogann1982 [59]

Answer:

SafeRide, Inc.

a. The financial implications of accepting the order are that total production cost will increase by $315,000 with a corresponding increase in sales revenue of $540,000, and an increase in net income by $225,000.

b. Under full capacity, the total production cost will increase by $1,485,000 for adding additional facilities while the sales revenue would increase by $540,000, resulting to a loss of $945,000.

c. Under full-capacity circumstances, there is a financing disadvantage of accepting the order because the order will entail additional capacity and facilities, resulting to a loss of $945,000.

Explanation:

Annual production capacity = 300,000 units

Current production capacity = 180,000 units

Special order from a German manufacturer = 60,000 units

Special order price per unit = $9.00

Budgeted Costs For      180,000 Units  240,000 Units  Difference 60,000

Manufacturing costs

Direct materials                 $450,000           $600,000       $150,000

Direct labor                           315,000             420,000          105,000

Factory overhead              1,215,000           1,260,000           45,000

Total                                  1,980,000          2,280,000       $300,000

Selling and administrative 765,000              780,000            15,000

Total                              $2,745,000        $3,060,000        $315,000

Costs per unit

Manufacturing                       $11.00                  $9.50

Selling and administrative       4.25                     3.25

Total                                     $15.25                  $12.75

Selling price to North American manufacturers = $20 per unit

Financial implications of accepting the order:

Manufacturing costs

Direct materials                  $150,000

Direct labor                           105,000

Factory overhead                  45,000

Total                                  $300,000

Selling and administrative    15,000

Total                                  $315,000

Total cost per unit = $5.25 ($315,000/60,000)

Total manufacturing cost per unit = $5 ($300,000/60,000)

Increase in net income from accepting the order = $225,000 ($9.00 - $5.25) * 60,000

Manufacturing costs

Direct materials                  $150,000 (variable)

Direct labor                           105,000 (variable)

Factory overhead              1,215,000

Total                                $1,470,000

Selling and administrative    15,000 (assumed to be variable)

Total                               $1,485,000

Unit cost per additional unit = $24.75

4 0
3 years ago
Of money's three functions, the one that distinguishes money from other assets is its function as a a. store of value. b. unit o
tiny-mole [99]

The one that distinguishes money from the other assets is that it is used as a medium of exchange

Explanation:

Money is one of the most important factor in our day to day lives it has become as defining the country's economic standard and it is widely accepted all over the world

Money is used as the medium of exchange because we can buy all the necessary things using the money and can use it as a medium to exchange of goods and services. There are also other important functions as the method of comparing the values

4 0
3 years ago
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