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
irakobra [83]
3 years ago
9

A new machine costing $1,800,000 cash and estimated to have a $60,000 salvage value was purchased on January 1. The machine is e

xpected to produce 600,000 units of product during its 8-year useful life. Calculate the depreciation expense in the first year under the following independent situations: The company uses the units-of-production method and the machine produces 70,000 units of product during its first year. The company uses the double-declining-balance method. The company uses the straight-line method.
Business
1 answer:
vredina [299]3 years ago
6 0

Answer:

Results are below.

Explanation:

Giving the following formula:

Purchase price= $1,800,000

Salvage value= $60,000

Useful life= 8 years or 600,000 units

<u>To calculate the annual depreciation using the units-of-production method, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(1,800,000 - 60,000) / 600,000]*70,000

Annual depreciation= $203,000

<u>To calculate the annual depreciation using the double-declining balance, we need to use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(1,800,000 - 60,000) / 8]

Annual depreciation= $435,000

<u>Finally, the annual depreciation using the straight-line method:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation=  (1,800,000 - 60,000) / 8

Annual depreciation= $217,500

You might be interested in
On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June
zysi [14]

Answer: $86,235

Explanation:

Use Excel or a financial calculator to calculate the bond price.

As the interest is payable semiannually, the relevant variables are:

Coupon = 10% * 100,000 * 1/2 years = $5,000

Yield = 12% / 2 = 6%

Number of periods = 15 years * 2 = 30 semi annual periods

Bond price = $86,235

6 0
3 years ago
An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last​ year, she purchased ​$5 comma 000
NemiM [27]

Answer:

1. $1000 (sale price) - $800 (Dealer price) = $200

2. $200 * 10 sculptures = $2000 of total value added

Explanation:

STEPS

1)The artist pays ​$5,000 for the intermediate goods​ (scrap metal) and sells the finished goods​ (10 sculptures) for ​$1 comma 1,000 each.

The value added for the artist equals ​$3000

2)The art dealer pays ​$800 for the intermediate goods​ (sculptures) and sells the finished goods​ (sculptures) for ​$1000 each. Calculate the difference between the price the dealer paid for the sculptures and the amount for which the dealer sold the sculptures.

3) $1000 (sale price) - $800 (Dealer price) = $200

4) $200 * 10 sculptures = $2000 of total value added

7 0
3 years ago
Vertical analysis can best be described as a technique for analyzing the percentage change in individual financial statement lin
Hoochie [10]

Answer:

False

Explanation:

Vertical analysis can be regarded as accounting tool which gives room for

proportional analysis of some documents. This document is usually

financial statements.In carrying out vertical analysis, all the item line that is on the financial statement is been recorded as percentage of another item. Instance of this is an income statement.

7 0
3 years ago
True or False. Enterprise Resource Planning software has proven popular in part because the standardization these products impos
KengaRu [80]

Answer:

The correct answer is false.

Explanation:

The term ERP refers to Enterprise Resource Planning, which means "enterprise resource planning system." These programs are responsible for different internal operations of a company, from production to distribution or even human resources.

The main advantages of these systems are:

  • Automation of company processes.
  • Availability of company information on the same platform.
  • Integration of the different databases of a company in a single program.
  • Time and cost savings.
5 0
3 years ago
Someone who is extremely dissatisfied with the direction of their current employer and has their own great ideas, an independent
Ne4ueva [31]

Group of answer choices.

a. Tough it out and try to adjust to their workplace

b. Quit their jobs and start their own business

c. sabotage their bosses in order to get new leadership d. Climb the corporate ladder in order to implement their ideas

Answer:

b. Quit their jobs and start their own business

Explanation:

An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.

Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).

Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.

Generally, an employee who is extremely dissatisfied with the direction of their current employer and has his or her own great ideas, aspirations, an independent streak (willingness to work for oneself rather than serve others), and a great work ethic might decide to quit their jobs and start their own business such as an entrepreneur.

An entrepreneur refers to an individual who sees a need or discovers a problem in a society and innovatively proffers a solution using brilliant ideas or entrepreneurial thinking.

The following are four characteristics of an entrepreneur;

1. Innovative: it can be defined as a quality possessed by an individual or group of people such as an entrepreneur and typically involves the process of improving on an existing product or ideas.

2. Passionate: believing in a course and one's ability to achieve much more at a business.

3. Risk-Taker: he or she is confident enough to venture into risky businesses with the hope of an expected success.

4. Self-Confident: he or she is bold and believes in his or her abilities to excel.

3 0
3 years ago
Other questions:
  • Valuing assets at their fair value rather than at their cost is inconsistent with the: periodicity assumption. full disclosure p
    12·1 answer
  • Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73
    15·2 answers
  • Economies of scale give an advantage to what type of company? (Select the best answer.)
    7·1 answer
  • Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to c
    11·1 answer
  • Problem 10-171 The following labor standards have been ... The following labor standards have been established for a particular
    6·1 answer
  • A ________economy usually stresses the equality of all citizens. A________ economy aims to be self-sufficient. A ________economy
    9·2 answers
  • A candy company called Hearts Aflame Inc. forms an agreement with
    5·1 answer
  • 6. Consider an economy described by the following equations:
    9·1 answer
  • Keynes believed that Question 8 options: Say's law would hold in a laissez-faire economy. the economy would always be near or on
    10·1 answer
  • Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2019, for $257,000.Annual amortization of
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!