45.18

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

2 years ago

A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and e

kykrilka [37]

Answer:

The above statement is true .

Explanation:

It is true , when a company take decision to move its operations out of the country it will affect its employees , owners , suppliers , distributors , even its customers .

It is because, when company move out , the employees working in it loss their jobs . They become jobless. The suppliers loss their customer. The distributor also loss their customer. The customer may like the product of the company and if the company moves out then they do not get their product which they like. The owner may also suffer loss,as its possible that the product do not gain popularity anywhere else . The company may loss its share. It also effect the economy , as a good earning company always serves to a country .

6 0

3 years ago

6. The split-level home is a variation of the

grigory [225]

Answer:

O C. Victorian house.

4 0

2 years ago

Read 2 more answers

Selected financial information for Feemster Company for 2012 follows. Sales $ 2,000,000 Cost of goods sold 1,400,000 Merchandise

olganol [36]

Answer:

The merchandise inventory turnover during 2012 is 8 times.

Explanation:

The following information is given:

Sales - $ 2,000,000

Cost of goods sold - $1,400,000

Merchandise inventory Beginning of year - $ 155,000

Merchandise inventory End of year - $ 195,000

After considering these information, it is easy to calculate the merchandise inventory turnover. The formula is shown below:

Merchandise Inventory Turnover = COGS ÷ Average inventory

where average inventory = (opening inventory + ending inventory) ÷ 2

So,

Average inventory = ( $ 155,000 + $ 195,000) ÷ 2

= $175,000

Now, we can compute easily

Merchandise Inventory Turnover = 1,400,000 ÷ $175,000

= 8 times

Thus, the merchandise inventory turnover during 2012 is 8 times.

3 0

3 years ago

When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds dated January 1, 2017, that mature on December 31, 202

yanalaym [24]

Answer: Credit, $45,000

Explanation:

The bond payable is the interest payable on the bond and it's Bond issued value mutiply by issued rate

$50,000 * 9%* 10 years

8 0

3 years ago