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ss7ja [257]
3 years ago
9

Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $315

,900. The company estimated that the machine would have a salvage value of $15,900 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 40,000 hours. Year-end is December 31.
Instructions
Compute the depreciation expense under the following methods and complete the depreciation schedules below.
(a) Straight-line depreciation.
(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.
(c) Sum-of-the-years'-digits.
(d) Double-declining-balance.
Business
1 answer:
Lady bird [3.3K]3 years ago
6 0

Answer:

(a) Straight-line depreciation.

depreciation expense per year = ($315,900 - $15,900) / 4 = $75,000

(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.

depreciation expense per unit = $300,000 / 40,000 = $7.50 per unit

depreciation expense 2014 = $7.50 x 15,000 = $112,500

depreciation expense 2015 = $7.50 x 11,710 = $87,825

(c) Sum-of-the-years'-digits.

depreciation expense 2014 = $300,000 x 4/10 = $120,000

depreciation expense 2015 = $300,000 x 3/10 = $90,000

(d) Double-declining-balance.

depreciation expense 2014 = $315,900 x 2 x 1/4 = $157,950

depreciation expense 2015 = $157,950 x 2 x 1/4 = $78,975

depreciation expense 2016 = $78,975 x 2 x 1/4 = $39,487.50

depreciation expense 2017 = $39,487.50 - $15,900 = $23,587.50

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charger company's most recent balance sheet reports total assets of $28,413,000, total liabilities of $16,113,000 and total equi
OleMash [197]

The debt to equity ratio for the period, based on the total liabilities and total equity, would be  1.31

<h3>How to find the debt to equity ratio?</h3>

The debt to equity ratio shows the amount of debt that a company has as a ratio of the debts to the equity that the company has.

The debt to equity ratio can be found by the formula:

= Total liabilities / Total Equity

Total liabilities = $16, 113, 000

Total equity = $12, 300, 000

The debt to equity ratio is therefore:
= 16, 113, 000 / 12, 300, 000

= 1.31

Find out more on the debt to equity ratio at brainly.com/question/27993089

#SPJ1

5 0
10 months ago
You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,030. These bonds make annual pa
defon

Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds  = 5.8%

bonds price =  $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value  

so that face Valueof  bond = $1,000

and here annual Coupon Amount will be

annual coupon amount = $1000 × 5.80%

annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value    ......................1

here Present Value of Coupon Payments  at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) =  \frac{1-(1/(1+r)^t}{r}  ....2

Present Value Annuity Inflow Factor =  \frac{1-(1/(1+0.0510)^14}{0.0510}

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= \frac{1}{(1+r)^t}   ...........3

Present Value Inflow Factor (PVIF) = \frac{1}{(1+0.0510)^14}

Present Value Inflow Factor = 0.49838

so

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price]  ...............4

total rate of return on the Bond = \frac{58+(1068.85-1030)}{1030}

total rate of return on the Bond = 9.40%

5 0
3 years ago
matt, a shareholder, can run for director by simply placing his name on the company's proxy statement. True or False?​
IgorLugansk [536]
False

Reason: A Shareholder cannot go for the director's by writing his name on the proxy Statement. Instead he has to place his name on the AGM or Annual General Meeting, where Shareholders meet, propose for their plans and Vote for The Company's Director.
6 0
3 years ago
To compete in the automobile​ market, Tesla must make many strategic decisions such as whether to introduce a new car​ model, ho
bagirrra123 [75]

Answer:

Explained

Explanation:

At​ Tesla's Fremont, California​ plant, managers must decide on the monthly production quantities of their S and X models. In making this​ decision, the managers must face a trade-off, because producing more of one model means producing less of the other. So, there need to an optimum balance between production of model S and X and too will depend upon the demand in the market once, the variants are launched.

6 0
3 years ago
Murphy's, Inc. has 10,000 shares of stock outstanding with a par value of $1.00 per share. The market value is $8 per share. The
EleoNora [17]

Answer:

option B is correct

market price per share be after the dividend is $7.27

Explanation:

Given data

share = 10000

stock value = $1.00 per share

market value = $8 per share

capital in excess = $32,500

common stock account = $10,000

retained earnings account = $42,700

stock dividend = 10%

to find out

market price

solution

we will find here market price / share that is given here formula

Market price is = ( share × market value) ÷ ( share × 1.10)

put here all these value we get

Market price = ( 10000  × 8 ) ÷ (10000 × 1.10)

market price = 80000 ÷ 11,000

so market price = 7.27

hence option B is correct

market price per share be after the dividend is $7.27

4 0
3 years ago
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