1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitrij [34]
3 years ago
5

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated 7 year

service life is expected to be $12,000. The company expects the equipment to operate for 12,500 hours. Required: a. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on January 1, 2021. b. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on March 31, 2021.
Business
1 answer:
Degger [83]3 years ago
3 0

Answer:

Part a

2021  = $7,000

2022  = $6,000

Part b

2021  = $5,250

Explanation:

Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.

Step 1

<em>Some of digits calculation :</em>

Year      Digits

2021        7

2022       6

2023       5

2024       4

2025       3

2026       2

2027        1

Total      28

Step 2

<em>Determine the depreciable amount</em>

Depreciable amount = Cost - Residual value

                                   = $40,000 - $12,000

                                   = $28,000

Step 3

<em>Depreciation expense calculations</em>

2021 = 7 / 28 x $28,000 = $7,000

2022 = 6/ 28 x $28,000 = $6,000

assuming the equipment was purchased on March 31, 2021

2021 = $7,000 x 9/12 = $5,250

You might be interested in
The Greeson Clothes Company produced 25,000 units during June of the current year. The Cutting Department used 6,380 direct labo
ra1l [238]

Answer:

Cutting Department:    

Rate variance = 6380*(10.9-11) = -638 Favorable  

Time variance = 11*(6380-25000*0.25) = 1430 Unfavorable  

Total direct labor cost variance = (6380*10.9)-(25000*11*0.25) = 792 Unfavorable

Sewing Department:

Rate variance = 9875*(11.12-11) = 1185 Unfavorable  

Time variance = 11*(9875-25000*0.4) = -1375 Favorable  

Total direct labor cost variance =(9875*11.12)-(25000*11*0.4) = -190 Favorable

4 0
3 years ago
What does cc and bcc mean in business studies​
WARRIOR [948]

Answer:

Using cc means that you send the email to another person — or other people — in addition to the primary recipient or recipients. When you use cc, everyone who receives the email can see who else received it. Bcc (“blind carbon copy) also sends a copy of the email to one or more people beyond the primary recipient(s).

Explanation:

4 0
3 years ago
T/F: If Harold runs a grocery store and is making a normal rate of return, we can infer that he is also making an economic profi
Misha Larkins [42]

Answer:

False

Explanation:

It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:

  • In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
  • Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
3 0
3 years ago
Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any ho
denis23 [38]

Answer:

It should be greater than $36

Explanation:

The opportunity cost of working is the amount of money sacrificed or could have earned if the individual was not working. In this case, Claire has decided to go with her friend which means that the opportunity cost of not working is less than the benefits receives from going out. Because she is not working it means that the opportunity cost of working is more than 36 dollars, which is the income she could have earned in 3 hours.

7 0
3 years ago
Read 2 more answers
Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $
Vlad1618 [11]

Answer:

c. 10.38%

Explanation:

Loan Amount = $10,000

Quarterly Interest payment = $250

Interest Payment for the year = $250 x 4

Interest Payment for the year = $1,000

Nominal interest rate = ($1,000 / $10,000) x 100 = 10%

Nominal interest rate = r = 10%

Number of periods = m = 4

Effective Interest rate = [ ( 1 + r/m )^m]-1

Effective Interest rate = [ ( 1 + 0.1/4 )^4] -

Effective Interest rate = [ ( 1 + 0.025 )^4] -1

Effective Interest rate = 10.38%

6 0
3 years ago
Other questions:
  • Carl lives in a small new england town where he and other residents attend monthly town meetings. at these meeting they publicly
    5·1 answer
  • If city a is located 35° west of city b, the time at city a is ________ that at city<br> b.
    13·2 answers
  • The journal entry to record the purchase of equipment for a $220 cash down payment and a balance of $640 due in 30 days would in
    10·1 answer
  • Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market, because there are not enou
    11·1 answer
  • 1. Classify the following cash flows as either operating (O), investing (I), or financing (F) activities. a) _____ Sold long-ter
    9·1 answer
  • Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The comp
    9·1 answer
  • Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]Riverside Inc. ma
    6·1 answer
  • You are writing an e-mail to a potential employer about a job opportunity. what can you do to make sure the e-mail reflects your
    6·1 answer
  • As the U.S. dollar appreciates against foreign currencies, the U.S. ____________ curve shifts _____________ resulting in a(n) __
    5·1 answer
  • Which aspect of diversity can be positive or negative? A (blank) can be negative or a positive.
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!