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hjlf
2 years ago
12

The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense

in the later years is a(an): Multiple Choice Accelerated depreciation method. Book value depreciation method. Straight-line depreciation method. Units-of-production depreciation method. Unrealized depreciation method.
Business
1 answer:
Citrus2011 [14]2 years ago
6 0

Answer:

Accelerated depreciation method

Explanation:

Accelerated method is a depreciation method in which the asset lost its book value at a quicker rate as compared with the straight line method. Under this method, it permit high deduction in the starting years so that the taxable income could be minimized

Therefore according to the given option the first option is correct and the same is to be considered

You might be interested in
Sheffield Corp. estimates its sales at 150000 units in the first quarter and that sales will increase by 15000 units each quarte
Varvara68 [4.7K]

Answer:

183,750

Explanation:

Data provided in the question:

Sales in the first quarter = 150,000 units

Increase in sales each quarter = 15000 units

Ending inventory = 25% of the current sales units

Now,

Ending inventory of first quarter = 25% of Units produced in the first quarter

= 0.25 × 150,000

= 37,500

Units produced in the first quarter = Sales +  Ending inventory of first quarter

= 150,000 + 37,500

= 187,500

Units to be produced in the second quarter

= Sales in second quarter - Ending inventory of first quarter + Ending inventory

=  [ 150,000 + 15,000 ] - 37,500 + 25% of [ 150,000 + 15,000 ]

= 165,000 - 37,500 + 41,250

= 168,750

Units to be produced in the Third quarter

= Sales in third quarter - Ending inventory of second quarter + Ending inventory

=  [ 150,000 + 15,000 + 15,000 ] - 41,250 + 25% of [ 150,000 + 15,000 + 15,000 ]

= 180000 - 41,250 + 45,000

= 183,750

4 0
3 years ago
When a foreman orders an assembly-line employee to carry out a task that the employee perceives as unethical, yet the employee f
Dmitry_Shevchenko [17]

Answer:

D) Legitimate power.

Explanation:

What is power exercising?

It is known that leaders have diverse styles. However, there is also a concept of exercising power which only identifies what power a figure is utilizing. There are eight powers of leaders.

Legitimate power: The power a leader use when he has a certain position in the company.

Foreman has authority over it's employees that's because the employee is compelled to do as the foreman is saying.

6 0
3 years ago
Shortly after recording street survivors, this group was involved in a fatal plane crash:
KengaRu [80]
<span>Street Survivors was the fifth studio album of the rock group Lynyrd Skynyrd, recorded in 1977. In October of that year, a small plain carrying members of the band as well as managers and support personell, crashed near Gillsberg, Mississippi. Lead Vocalist Ronnie Van Zant, guitarist Steve Gaines, and backup vocalist Cassie Gaines were among the six killed.</span>
3 0
3 years ago
RecRoom Equipment Company received a $9,200, six-month, 9 percent note to settle a $9,200 unpaid balance owed by a customer.
PolarNik [594]

Answer:

RECROOM EQUIPMENT COMPANY

Date                     Description                             DR                   CR

a. Nov 1                Note Receivable                    8000

                            Allowance on debt                 1,200

                          Account Receivable                                           9,200

                 <em> Being the settlement of customers deb</em>t

b. Dec 31                Interest receivable                 120

                          Interest   Income                                                     120

                   <em>Being the interest accrued at the year end </em>

<em />

c. 30 April              Cash                                        720

                           Interest receivable                                               120

                           Interest income                                                    600

             <em>Being the receipt of interest at maturity date</em>

<em />

d. April 30              Cash                                      8000

                           Note receivable                                                 8,000

                    <em>Being the  settlement of principal at maturity </em>                          

Explanation:

8 0
3 years ago
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent,
Alex17521 [72]

Answer:

a. What is the price of each bond today?

Miller Corporation bond = $1,179.71

Modigliani Company bond = $835.42

b.                          Miller                                        Modigliani Company

                            Corporation Bond                   Bond

1 year                   $1,170.26                                 $841.89

4 years                $1,142.86                                 $866.67

9 years                $1,083.33                                $920

13 years               $1,019.23                                $980.95

14 years               $1,050                                     $1,040

Explanation:

YTM formula:

Miller Corporation

YTM = [coupon + (face value - market value)/n] / (face value + market value)/2

0.04 = [50 + (1,000 - x)/28] / (1,000 + x)/2

0.02(1,000 + x) = 85.71 - 0.0357x

20 + 0.02x = 85.71 - 0.0357x

0.0557x = 65.71

x = 65.71 / 0.0557 = $1,179.71

if we want to calculate the bond price in one year, we replace 28 by 26

0.04 = [50 + (1,000 - x)/26] / (1,000 + x)/2

0.02(1,000 + x) = 88.46 - 0.0385x

20 + 0.02x = 88.46 - 0.0385x

0.0585x = 68.46

x = 68.46 / 0.0585 = $1,170.26

if we want to calculate the bond price in 4 years, we replace 28 by 20

0.04 = [50 + (1,000 - x)/20] / (1,000 + x)/2

20 + 0.02x = 100 - 0.05x

0.07x = 80

x = 80 / 0.07 = $1,142.86

if we want to calculate the bond price in 9 years, we replace 28 by 10

0.04 = [50 + (1,000 - x)/10] / (1,000 + x)/2

20 + 0.02x = 150 - 0.1x

0.12x = 130

x = 130 / 0.12 = $1,083.33

if we want to calculate the bond price in 13 years, we replace 28 by 2

0.04 = [50 + (1,000 - x)/2] / (1,000 + x)/2

20 + 0.02x = 550 - 0.5x

0.52x = 530

x = 530 / 0.52 = $1,019.23

Modigliani Company

YTM = [coupon + (face value - market value)/n] / (face value + market value)/2

0.05 = [40 + (1,000 - x)/28] / (1,000 + x)/2

0.025(1,000 + x) = 75.71 - 0.0357x

25 + 0.025x = 75.71 - 0.0357x

0.0607x = 50.71

x = 50.71 / 0.0607 = $835.42

if we want to calculate the bond price in one year, we replace 28 by 26

0.05 = [40 + (1,000 - x)/26] / (1,000 + x)/2

0.025(1,000 + x) = 78.46 - 0.0385x

25 + 0.025x = 78.46 - 0.0385x

0.0635x = 53.46

x = 53.46 / 0.0635 = $841.89

if we want to calculate the bond price in 4 years, we replace 28 by 20

0.05 = [40 + (1,000 - x)/20] / (1,000 + x)/2

25 + 0.025x = 90 - 0.05x

0.075x = 65

x = 65 / 0.075 = $866.67

if we want to calculate the bond price in 9 years, we replace 28 by 10

0.05 = [40 + (1,000 - x)/10] / (1,000 + x)/2

25 + 0.025x = 140 - 0.1x

0.125x = 115

x = 115 / 0.125 = $920

if we want to calculate the bond price in 13 years, we replace 28 by 2

0.05 = [40 + (1,000 - x)/2] / (1,000 + x)/2

25 + 0.025x = 540 - 0.5x

0.525x = 515

x = 515 / 0.525 = $980.95

4 0
3 years ago
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