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marysya [2.9K]
3 years ago
15

On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated use

ful life of five years. Using the straight-line method, what is the amount that should be recorded as depreciation on December 31?
a. $135,000
b. $24.900
c. $124,500
d. $27,000
Business
1 answer:
gulaghasi [49]3 years ago
5 0

Answer:

Depreciation = $24900

Explanation:

Below is the calculation of depreciation:

Cost of equipment = $135000

Salvage value = $10500

Useful life = 5 years

Depreciation = (Cost of machine - salvage value) / useful life

Depreciation = (135000 - 10500) / 5  

Depreciation = $24900

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Grace [21]

Answer:

c(x) =400 + 3x

r(x) = 12x

x = 44.44

Explanation:

Given

<u>Cost</u>

Equipment = 400

Production = 3 per mouse pad

Revenue

Sales\ Price = 12

Solving (a): The cost function

Let the number of mouse pad be x and the cost function be c(x).

c(x) =Equipment + Production * x

c(x) =400 + 3 * x

c(x) =400 + 3x

Solving (b): The revenue function

Represent this with r(x)

r(x)= Sales\ Price * x

r(x)= 12 * x

r(x)= 12 x

Solving (c): The break-even point

This is the point where r(x) = c(x)

So, we have:

12x = 400 + 3x

Collect Like Terms

-3x+12x = 400

9x = 400

Solve for x

x = \frac{400}{9}

x = 44.44

8 0
3 years ago
Suppose Juan has three job offers. He can earn $50,000 in Atlanta, GA; $70,000 in Boston, MA; or $100,000 in San Francisco, CA.
Pavlova-9 [17]

Answer:

  • <u><em>To maximize the purchasing power of his income, Juand should accept the offert of Atlanta, GA.</em></u>

Explanation:

To answer this question you need the <em>comparative costs of living</em> in each of the trhee cities.

In a similar question, you can find the <em>cost of iiving indexes</em> for <em>Atlanta, Boston,</em> and <em>San Francisco</em>. Here is the table:

<em />

<em>                                           Cost of living index</em>

<em>City                                (100 = U.S. City average)</em>

<em>Atlanta, GA                                 98</em>

<em>Boston, MA                               160</em>

<em>San Francisco, CA                   245</em>

Thus, to determine which offer <em>Juan should accept to maximize the purchasing power of his income</em>, divide each income by the cost of living index.

<u>Atlanta, GA:</u>

<u />

  • $50,000/98 = $510.20

<u>Boston, MA</u>

  • $70,000/160 = $437.50

<u>San Francisco, CA</u>

  • $100,000/245 = $408.16

Rank the adjusted earnings in decreasing order:

  • $510.20 > $437.50 > $407.16

Hence, in spite of the nominal earnings in Atlanta are the lowest, the higher cost of living indexes of the other cities, make that the offer from Atlanta the best one.

5 0
4 years ago
Creek Co. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from t
Afina-wow [57]

Answer:

b. $22.500.

The estimate of bad debt expense is $22,500

Explanation:

Method of Bad Debt estimation = Percentage of credit sale

Bad Debt Expense = 3% of credit sale  ($750,000)

Bad Debt Expense = 3% x $750,000

Bad Debt Expense = $22,500

5 0
3 years ago
What are <br> recovery strategies
Alexeev081 [22]

Answer:

I think it is art

Explanation:

it shows the color between each layer

4 0
3 years ago
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Problem 2.7 Service Station A service station uses 1,200 cases of oil a year. Ordering costs is $40 and annual carrying cost is
baherus [9]

Answer:

179 units

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand = 1,200 cases

Ordering cost = $40

And, the annual carrying cost is $3 per case

Now placing these values to the above formula

So, the optimal order quantity is

= \sqrt{\frac{2\times \text{1,200}\times \text{\$40}}{\text{\$3}}}

= 179 units

Hence, the optimal order quantity is 179 units

4 0
3 years ago
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