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wlad13 [49]
3 years ago
12

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400.

The machine's useful life is estimated at 20 years, or 387,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 32,700 units of product.
Required:
Determine the machine's second-year depreciation using the double-declining balance method.
Business
1 answer:
ivann1987 [24]3 years ago
4 0

Answer:

$7,326

Explanation:

Double Decline Balance = 2 x SLDP x SLDBV

where,

SLDP = Straight Line Depreciation Percentage

          = 100 ÷ useful life

          = 100 ÷ 20

          = 5 %

and

SLDBV = Straight Line Percentage Book Value

Year 1

Double Decline Balance = 2 x 5% x $81,400

                                           = $8,140

Year 2

Double Decline Balance = 2 x 5% x ($81,400 - $8,140)

                                           = $7,326

Therefore

The machine's second-year depreciation using the double-declining balance method is $7,326.

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Answer:

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Explanation:

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According to WACC formula

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As WACC is calculated using Market values.

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Answer:

C. The termination of the firm's legal existence.

Explanation:

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Answer:

The correct answer is letter "D": simultaneously compete against each other in the same product areas geographic markets.

Explanation:

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