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stira [4]
2 years ago
7

ABC Company on Jan 1, 2021 purchased a delivery van for $24,000. To complete the purchase, the company also incurred a $800 ship

ping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 20,000 miles in year 1; 25,000 miles in year 2; 44,000 miles in year 3; and 55,000 miles in year 4. Required: Using Straight-line depreciation method, what is the annual depreciation expense
Business
1 answer:
Whitepunk [10]2 years ago
7 0

Answer:

the yearly depreciation expense is $5,500

Explanation:

The computation of the yearly depreciation expense using the straight line method is as follows;

= (Purchase cost - salvage value) ÷ (estimated useful life)

= ($24,000 + $800 + $1,200 - $4,000) ÷ (4 years)

= ($26,000 - $4,000)  ÷ (4 years)

= $22,000 ÷  4 years

= $5,500

hence, the yearly depreciation expense is $5,500

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The average cost associated with each additional dollar of financing for investment projects is:_________
Roman55 [17]

Answer:

c) the marginal cost of capital

Explanation:

The cost which a company bears to add one dollar / unit of capital is called marginal cost. We know that the company raise funds through different sources which can be debt from banks and stocks (common and preferred). This process of raising capital involves a cost which is termed as marginal cost of capital or the cost required to raise an additional unit of capital.

7 0
2 years ago
When the lender provides the borrower with an amount of funds that must be repaid to the lender at the maturity date, along with
xxMikexx [17]

Answer:

This is called a <em>simple interest rate.</em> When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.

To calculate <em>simple interest rate</em>, the interest rate payment is divided by the loan amount.

Explanation:

This is called a <em>simple interest rate.</em> When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.

To calculate <em>simple interest rate</em>, the interest rate payment is divided by the loan amount.

4 0
3 years ago
Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for a covenant not to compete.
Iteru [2.4K]

Answer: Option (B)

Explanation:

Condition subsequent clause is referred to as an exit clause from the existing contract. This agreement in between the parties tends to include languages that loosens or frees one of individuals from the agreement or the deal. This tends to mostly occur when the conditional outcome or result takes place. The conditional subsequent relieves an individual or a party from all the obligations.

4 0
3 years ago
consider a firm that produces units of output using capital and labor. due to changes in market conditions, it has decided to re
mote1985 [20]

A firm that produces units of output using capital and labor to determine  its total costs will decline by doing so, the firm will evaluate its:<u> Marginal cost Function .</u>

<u></u>

Option C is correct .

Marginal cost is the change in cost due to producing on excess unit of affair. To determine how big its total cost decline, the establishment will estimate its marginal cost function.

<h3>Marginal cost function :</h3>

Marginal cost represents the gradual costs incurred when producing fresh units of a good or service. It's figured by taking the total change in the cost of producing further goods and dividing that by the change in the number of goods produced.Marginal cost is calculated as the aggregate charges needed to manufacture one fresh good. thus, it can be measured by changes to what charges are incurred for any given fresh unit.<u> Marginal Cost</u><u> = Change in</u><u> Total Charges ÷</u><u> Change in volume of Units Produced.</u>

Question is incomplete ,missing option is given below :

Consider a firm that produces units of output using capital and labor. Due to changes in market conditions, it has decided to reduce its daily output from 5 units to 4 units. To determine how much its total costs will decline by doing so, the firm will evaluate its: Group of answer choices

A.marginal product function

B.average product function

C.marginal cost function

D.average total cost function

E.average variable cost function

Learn more about Marginal cost function :

brainly.com/question/17481520

#SPJ4

3 0
1 year ago
The following data are available for Springer Corporation.
Alchen [17]

Answer:

B) $330,000

Explanation:

Cash from operating activities involves the cash inflows and outflows that is realised during normal busines s activities. It is the first section that appears in the statement of cash flows.

Other sources of cash flows is from investing activities and financing activities.

Operating cash flow= Net income+ Depreciation- Taxes +/- Change in working capital

Operating cash flow= 300,000+ 60,000- 15,000+ 30,000- 45,000= $330,000

6 0
3 years ago
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