Calculate interest amount forR3000 10%p.a paid out every 6months

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. Wha

allochka39001 [22]

Answer:

The answer is: $18, 750

Explanation:

The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:

Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period

Machine cost: $75, 000

Residual Value: $5, 000

Estimated Life: 4 years/18, 000 hours

Straight line depreciation percentage : 100/4 = 25%

Depreciation Year 1 on DDB = 2 * 25% * $75, 000

= $37, 500

Depreciation Year 2 on DDB = 2 * 25% * ($75, 000 -$37, 500)

= $18, 750

4 0

3 years ago

A person who is in the business of selling cars is called a:

True [87]

The person who sell cars would be salesmen

3 0

3 years ago

Read 2 more answers

How much increase in net worth (equity) would a market basis balance sheet show over a cost basis if Land was purchased for $1,0

Pachacha [2.7K]

Answer: $4,050,000

Explanation:

Increase in net worth shows the after tax gain that the person got after the land in question increased in value.

= (Current value - Purchase price) * ( 1 - tax rate)

= (5,500,000 - 1,000,000) * (1 - 10%)

= 4,500,000 * 0.90

= $4,050,000

3 0

3 years ago

Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 P

romanna [79]

Answer:

Details below

Explanation:

For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.

The given data is as follows.

Requisition No. Material Job No. Amount

103 Plastic 400 $ 2,800

104 Steel 402 24,000

105 Glue Indirect 1,620

106 Rubber 403 3,200

107 Titanium 404 31,600

The entry for materials requisitioned will be

A compound entry can be passed. In this the subsidiary ledger is not included.

Sr. No Particulars Debit Credit

Work In Process 61600

Factory Overhead 1620

Materials Inventory 63200

The one with a subsidiary ledger would look like this.

Sr. No Particulars Debit Credit

(Subsidiary)

1 Work In Process 61600

( Job No 400) 2800

( Job No 402) 24000

( Job No 403) 3200

( Job No 404) 31600

Factory Overhead 1620

Materials Inventory 63200

This is combined entry but separate entries can be passed as well .

Sr. No Particulars Debit Credit

Work In Process 61600

Materials Inventory 61600

Sr. No Particulars Debit Credit

Factory Overhead 1620

Materials Inventory 1620

Sr. No Particulars Debit Credit

(Subsidiary ledger)

( Job No 400) 2800

( Job No 402) 24000

( Job No 403) 3200

( Job No 404) 31600

Materials Inventory Plastic 2800

Materials Inventory Steel 24000

Materials Inventory Titanium 3200

Materials Inventory Rubber 31600

In each of the entries above materials inventory is credited.

3 0

3 years ago

. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demand

Andre45 [30]

Answer:

The correct answer is a).

Explanation:

The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.

If the income elasticity of demand for medical care is 1.35,

a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%. TRUE, this is what the definition implies.

b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.

c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care. FALSE. The elasticity relates percentual variations, not absolute value variations.

d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. The same as point b.

5 0

3 years ago