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Andre45 [30]
3 years ago
11

A machine that cost $225,000 has an estimated residual value of $15,000 and an estimated useful life of 15,000 machine hours. Th

e company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 4,000 hours in year 2, and 5,000 hours in year 3. Calculate its book value at the end of year 3
Business
1 answer:
algol [13]3 years ago
8 0

Answer:

$57,000

Explanation:

<u><em>Step 1 : Depreciation Rate</em></u>

Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production

therefore,

Depreciation Rate = $14.00 per machine hour

<u><em>Step 2 : Depreciation expenses</em></u>

Depreciation expense = Depreciation Rate x Annual production

therefore

Year 1 = $42,000

Year 2 = $56,000

Year 3 = $70,000

Total    = $168,000

<em><u>Step 3 : Book Value</u></em>

Book Value = Cost - Accumulated Depreciation

                    = $225,000 - $168,000

                    = $57,000

Conclusion :

book value at the end of year 3 is $57,000

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Joint products A and B emerge from common processing that costs $116,000 and yields 4,000 units of Product A and 2,800 units of
Mandarinka [93]

Answer:

Apportioned joint cost to A=$92,800

Explanation:

<em>Joint costs are the costs incurred up until the split-off where two or more products result from the same production process. These  common costs need to be apportioned among the joint products using any of the following basis:</em>

  1. physical units
  2. Relative sales value basis.

The relative value basis apportions joint costs using the proportion of product individual sales value to the the total sales value.

Total sales value = (280×4,000) + (100×2,800) =1400000

Apportioned joint cost to A =(1,120,000/1,400,000)× 116,000=92800

Apportioned joint cost to A=$92,800

4 0
2 years ago
Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipme
zheka24 [161]

Answer:

The payback period for this project is closest to 2 years

Explanation:

Initial investment = $300,000

Sales = $500,000

Cash variable expenses = ($200,000)

Contribution margin = 300,000

Fixed cash expenses = $150,000

Depreciation expenses = $37,500

Total Fixed expenses: $150,000 + $37,500 = ($ 187,500 )

Net operating income = $112,500

Annual cash inflows = Net operating income + Depreciation

= $112,500 + $37,500

= $150,000

Payback period = Initial investment ÷ Annual cash inflows

= $300,000 ÷ $150,000 = 2 years

5 0
3 years ago
Someone please help me out here
trapecia [35]

Answer:

Pretty sure that's false

6 0
3 years ago
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on M
Helen [10]

Answer:

1. 18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

Explanation:

1.Preparation of all the necessary journal entries for 2019

18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

(13%*301,200*$14)

(To purchase 10% of Ramirez Fashion)

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

(13%$70,100)

(To record a 13% dividend revenue $70,100)

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

[($15-$14)*13%*301,200]

(To adjust securities to FMV in an Equity account)

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

(25%*32,700*$10)

(To purchase 25% of Nadal Corp.)

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

(25%$31,600)

(To record cash dividend of $31,600)

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

(25%*$116,000)

(To record 25% revenue of $116,000 from Nada)

7 0
3 years ago
Which of the following statements is true? a. A college degree does not influence the earnings of workers. b. The median pay of
ICE Princess25 [194]

Answer:

b. The median pay of economics majors increased more in dollar terms than any other majors in 2015.

Explanation:

As it can be seen from the various sources that tha major in economics represents the largest per dollar rise for all major in the year 2015

Due to which it brings down the requirement for more economists also the word economics is not certain. Also, for the entry level jobs in the economics field, the minimum qualification should be masters

Therefore according to the given case, the option B is correct

7 0
3 years ago
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