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
LUCKY_DIMON [66]
3 years ago
7

Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company estimates the equip

ment will have a residual value of $25,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:
Year Hours Used
1 3,000
2 2,000
3 1,200
4 2,800

Required:
Prepare a depreciation schedule for four years using the straight-line method.
Business
1 answer:
Zina [86]3 years ago
5 0

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $100,000

Salvage value= $25,000

Useful life= 4 years

<u>To calculate the annual depreciation, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (100,000 - 25,000) / 4

Annual depreciation= $18,750

<u>Year 1:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750

Book value= 100,000 - 18,750= 81,250

<u>Year 2:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*2= 37,500

Book value= 100,000 - 37,500= 62,500

<u>Year 3:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*3= 56,250

Book value= 100,000 - 56,250= 43,750

<u>Year 4:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*4= 75,000

Book value= 100,000 - 75,000= 25,000

You might be interested in
Zhang Industries sells a product for $750. Unit sales for May were 400 and each month's sales are expected to grow by 3%. Zhang
Colt1911 [192]

Answer:

Total= $292,520

Explanation:

Giving the following information:

Zhang Industries sells a product for $750. Unit sales for May were 400 and each month's sales are expected to grow by 3%. Zhang pays a sales manager a monthly salary of $4,000 and a commission of 2% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale.

Cash budget for June:

Sales= [(400*1.03)*750]*0.3= 92,700

Sales from May= (400*750)*0.7= 210,000

Salary= (4,000)

Commision= [(400*1.03)*750]*0.02= (6,180)

Total= $292,520

6 0
3 years ago
If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the:___________. A. frictional une
professor190 [17]

Answer:

C. cyclical unemployment rate is 4 percent.

Explanation:

The cyclical unemployment is associated with business cycles of recessions and expansions. The actual unemployment rate is given by the natural rate of unemployment added to the cyclical unemployment rate. In this case, the cyclical unemployment rate is:

C = 9\%-5\% = 4\%

The answer is C. cyclical unemployment rate is 4 percent.

6 0
3 years ago
Bakers are much likely to supply pastries to the market if property rights are not enforced. True or false?.
In-s [12.5K]

The statement bakers are much likely to supply pastries to the market if property rights are not enforced is <u>false</u>.

<h3>What is property rights? </h3>

Property rights can be defined as the right given to person to own and use their property they way they like or wish to use it.

The statement is not true because bakers are much likely to supply their pastries to the market if property rights are enforced.

Therefore the statement bakers are much likely to supply pastries to the market if property rights are not enforced is <u>false</u>.

Learn more about property right here:brainly.com/question/913138

brainly.com/question/22370263

#SPJ1

6 0
2 years ago
Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent c
jeka57 [31]

Answer: $62.50

Explanation:

The stock price of Locked-In Real Estate (LIRE) will be calculated thus:

Stock price = D /ke - g

where,

D = Dividend paid per share = $7.50

Ke = expected rate of return on equity = 12% = 0.12

g is growth rate of dividend = 0

Stock price = $7.50/0.12

Stock price = $62.5

Therefore, the stock price is $62.50

4 0
3 years ago
A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the
DiKsa [7]

A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

8 0
3 years ago
Other questions:
  • How does a country's business cycle generally affect the international trade balance?
    8·1 answer
  • The institution-based view driving alliances and acquisitions focuses on _____ concerns.
    13·1 answer
  • An example of technological change is A. a firm rearranging the layout of a retail store to increase sales. B. a firm installing
    9·2 answers
  • Compute the Cost of Goods Sold for 2016 using the following information:Direct Materials, Jan. 1, 2016 $40,000Work-in-Process, D
    11·1 answer
  • Using an annuity to fund a qualified retirement plan:(A)is unsuitable under any circumstances(B)is suitable if it is a fixed ann
    5·1 answer
  • The replacement cost of an inventory item is below the net realizable value and above the net realizable value less a normal pro
    10·1 answer
  • In your computer repair business, it takes an employee 40 minutes to remove a virus. The employee is paid $14 per hour. What is
    7·1 answer
  • Pat has Been riding informal proposals for more than 20 years. At feels that many people forget the call for action and present
    12·1 answer
  • If the before-tax rate of return on a corporate bond is 7%, an individual in the 25% marginal tax bracket would earn a _____ rat
    12·1 answer
  • What effect did the cotton gin have on the south’s economy?.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!