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Shalnov [3]
2 years ago
13

Carly Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $9

60,000. The estimated residual value of the building is $66,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year
Business
1 answer:
ahrayia [7]2 years ago
4 0

Answer:

Straight line method rate = 1/ Number of years * 100  = 1/25*100 = 4%

Double declining balance depreciation = 2*Straight line method rate*Book value

First Year depreciation = 8%*$960,000

First Year depreciation = $76,800

Second year depreciation = 8% * (Book Value as on 1st year - First Year depreciation)

Second year depreciation = 8%*($960,000-$76,800)

Second year depreciation = 8%*$883,200

Second year depreciation = $70,656

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For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inve
lilavasa [31]

Answer:

$2 per unit per year

Explanation:

The calculation of the inventory carrying cost per unit per year is shown below:

Inventory Carrying cost per unit per year is

= Total Annual Inventory cost ÷ Economic order quantity

= $400 ÷ 200 units  

= $2 per unit per year

It is computed By dividing the total annual inventory cost from the economic order quantity, in order to get the inventory carrying cost

Therefore, the first option is correct

3 0
3 years ago
Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to A) promote the positive aspects of moderate b
Verdich [7]

Answer: B. promote responsible drinking and curb underage drinking before it starts.

Explanation:

Anheuser-Busch Companies, LLC is simply a brewery company as it produces alcoholic drinks.

Corporate Social Responsibility is when companies contribute a positive impact to the economy. This can be in form of giving scholarships to students, construction of infrastructure etc.

Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to promote responsible drinking and curb underage drinking before it starts.

5 0
3 years ago
The theory of comparative advantage states that:
Stella [2.4K]

Answer:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Explanation:

This is the best option with the theory of comparative advantage states countries produce goods for which they have a lower opportunity cost. Having resources and talents lower the opportunities cost. When countries do this, it increases economic welfare for all.

6 0
3 years ago
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper
Vika [28.1K]

Answer:

<u>Desing A:   </u>23,024,370‬

<u>Desing B:   </u>22,520,274.6

It should purchase desing B as the capitalized cost is lower.

Explanation:

We consider annuity for the overhauls and then, perpetuity to consider this incinerators will last indefinitely.

maintenance cost: 800,000 / 0.05 = 16,000,000

<u>Overhaul: </u>

The company will need to fund 1,250,000 every 5 years. We need to determinate the annuity to obtain this future value:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\

PV 1,250,000

time 5

rate 0.05

1250000 \div \frac{(1+0.05)^{5} -1}{0.05} = C\\

C  $  $ 226,218.498

<u>Then at perpetuity:</u>

$ 226,218.498  / 0.05 = 4,524,370

<u>Desing A capitalized cost:</u>

2,500,000 + 16,000,000 + 4,524,370 = 23,024,370‬

We do the same for Desing B:

investment: 5,750,000

maintenance: 600,000 / 0.05 = 12,000,000

overhaul:

3000000 \div \frac{1-(1+0.05)^{-10} }{0.05} = C\\

C  $ 238,513.725

238,513.73/0.05 =  4,770,274.6

Capitalized cost: 5,750,000 + 12,000,000 + 4,770,274.6 = 22,520,274.6‬

8 0
3 years ago
how is a functional structure or unitary structure organized? A. With a central executive handling all major decisions B. To lig
RoseWind [281]

Answer: Into functional departments, with departmental managers who report to the CEO and small corporate staff

Explanation: In simple words, functional structure refers to the structure under which an organisation divides its work by making different departments for the core activities that are to be performed.

Under such structure, every department have employees working on a single activity they were assigned to like sales finance etc. Every department gets one manager who is liable to report to the CEO of the company.

7 0
3 years ago
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