Answer:
<u>Depreciation expense per year</u>
Year 1 = $1200
Year 2 = $800
Year 3 = $600
Year 4 = $300
Year 5 = $100
Explanation:
To determine the depreciation expense under the units of production/activity method of charging depreciation, we will first calculate the depreciation expense per unit and then multiply it with the units of production in each year to calculate the depreciation expense for that year.
The formula for depreciation under this method is attached.
Depreciation per unit = (3000 - 0) / 30000 = $0.1 per copy
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<u>Depreciation expense per year</u>
Year 1 = 0.1 * 12000 = $1200
Year 2 = 0.1 * 8000 = $800
Year 3 = 0.1 * 6000 = $600
Year 4 = 0.1 * 3000 = $300
Year 5 = 0.1 * 1000 = $100
B.
The bus company has monopoly over the bus service in the town because it has no competitors.
Answer:
$6618 annual payment
Explanation:
Employer's annual contribution = $1500 until trust fund distribution
trust fund distribution = $25000
years to trust fund distribution = 20 years
To calculate the amount she must deposit to make up the amount ( future required amount ) she will pay the difference between the required value and the contribution from her employer + trust fund distribution
future value = 1500 FVIFA(8%,30) + 2500 FVIFA( 8%,10)
= 169924( 1500*113.28) + 53973 = 223897
therefore the required total of what she should deposit = 973633 - 223897 = 749735
the amount she must deposit annually is calculated as
749735 ( total payment ) = annuity * FVIFA(8%,30 )
ANNUITY = 749735 / 113.28
= $6618
NOTE : FVIFA (8%,30) and FVIFA( 8%,10) values are gotten from the FVIFA table
Answer:
B) making warranties easier to understand.
Explanation:
The Magnuson Moss Warranty Act of 1975 governs consumer product warranties. Manufacturers are not required to offer product warranties, but when they do, they are required to provide clear and detailed information about warranty coverage. This law applies only to products, it doesn't apply to services.
