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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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Identify the true statements about materials requirements planning. (Check all that apply.) Multiple select question. It is cons
ipn [44]

Material requirements planning is simply used for the management of manufacturing processes.

The main aim of the materials requirement planning is that it helps in keeping production activities on track. Also, there's better inventory control and an improvement in scheduling.

Based on the options given, the true statements about materials requirements planning include:

• It is used widely, especially in manufacturing.

• It is considered a push system.

• It uses a time-phased schedule that is based on lead time.

Read related link on:

brainly.com/question/12678676

5 0
3 years ago
3
iris [78.8K]

None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)

In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:

  • To belong to the same category or have the same function.
  • To be possible for the user to replace the first element using the alternative.

Based on this, let's analyze each of the options:

  • Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.

  • Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.

  • Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.

Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.

Learn more in

7 0
3 years ago
On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J
mel-nik [20]

Answer:

The cash received from bond issuance is journalized as follows:

Dr Cash                                $285,600

Cr  Bonds payable                                  $280,000

Cr Premium on Bonds payable                   $5,600

The June 30 and 31 December Year 1 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                         $8400

The June 30 and 31 December Year 2 interest on the bonds are recorded thus:

30 June

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                             $8400

31 December

Dr Interest expense(bal fig) $7,840                                          

Dr Premium on bonds           $560

Cr Cash                                            $8400

Explanation:

The amount realized from the bond is calculated thus:

$280,000*102%=$285,600

Premium on  bond=Bonds proceeds-par value

                                =$285,600-$280,000

                                =$5,600

Semi-annual amortization of bond premium=$5,600/5*6/12

                                                                         =$560

Semi-annual interest payment=$280,000*6%*6/12

                                                 =$8,400

5 0
3 years ago
If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would
Elza [17]

Answer: Producer price index

Explanation:

The producer price index is used to know the average differences in prices that are received by local producers for their output.

To calculate the producer price index, the current prices gotten by the sellers of a good or service is divided by the prices of the good or service using a base year and multiplying the result by 100. The producer price index is also a measure of inflation in an economy.

4 0
3 years ago
On January 1, 2020, the balance sheet of Naperville Company (a sole proprietorship) was as follows.
guapka [62]

Answer:

Explanation:

From the information povided:

(a) To compute the amount of goodwill paid by Chicago Corporation

Particulars                                            Amount ($)

Accounts Receivable                           100000

Inventory                                               170000

Plant & Equipment                               400000

Land                                                        90000

Customer List                                            4000

Trade Names                                          <u> 16000</u>

     NET ASSETS  (A)                             <u>780000</u>

<u />

Current liabilities                                     76000

Non-current liabilities                            <u>160000 </u>

      NET LIABILITIES (B)                        <u> 236000</u>

∴

PURCHASE  CONSIDERATION (A -B)   544000

<u>Less:</u>  Cash Paid                                    <u>  580000</u>

          GODWILL                                    <u>    36000 </u>

<u />

b)

In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.

Account Name                                       Dr.                      Cr.

Accounts Receivable A/C                  100000

Inventory A/C                                       170000

Plant Equipment  A/C                          400000

Land A/C                                                 90000

Customer List A/C                                    4000

Trade Names A/C                                   16000

Goodwill A/C                                           36000

Current liabilities A/C                                                       76000

Non-Current Liabilities A/C                                             160000

Cash A/C                                                                          580000

c)

The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.

<u />

8 0
2 years ago
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