$500 at an interest rate of 8% for 2 years with an additional deposit of $500 each year

Sid purchased an automobile for personal

Aloiza [94]

Answer:

Part A. $1200

Part B. $1200

Explanation:

Part A.

Under MACRS rules, the depreciation rate for the 5 year recovery period asset would be:

Year 1 20%

Year 2 32%

Year 3 19.2%

Year 4 11.52%

Year 5 11.52%

Year 6 5.76%

This means that the first year MACRS depreciation deduction would be 20% which is $1200 ($6000 * 20%).

Part B.

If Sid does not elect Section 179 expensing then the depreciation would be calculated using straight line basis.

The depreciation would be:

Depreciaiton Expense = $6000 / 5 Years life = $1200

8 0

3 years ago

The Rowe Corporation uses a standard cost system. The company applies manufacturing overhead to units of product based on machin

Viefleur [7K]

Answer:

Allocated overhead= $216,000

Explanation:

Giving the following information:

Estimated overhead= $225,000

Estimated machine-hours= 25,000

At standard, each unit of finished product requires 3 machine-hours. Units of product completed 8,000 units

<u>To allocate overhead, we need to use the standard number of machine-hours that would take to produce 8,000 units.</u>

First, we need to determine the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 225,000/25,000= &9 per machine hour

Now, we can allocate overhead:

Allocated overhead= 9*(8,000*3)= $216,000

7 0

3 years ago

has excess cash of $15,000 at the end of the harvesting season. will need this cash in four months for normal operations. Requi

kolezko [41]

Answer:

1)

Some of the major reasons why Garden Haven might to choose to either invest in debt or equity securities are as follows;

They want to generate earnings. It is better to earn money from excess cash than keep it idle.
They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash .
To meet cyclical cash needs.

They may have policies as regard to quantum of cash that can be kept .

2)

In terms of classification, Garden Haven's investment falls in short term investments.

Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.

8 0

3 years ago

Your parents will retire in 29 years. They currently have $200,000 saved, and they think they will need $2,400,000 at retirement

zhannawk [14.2K]

Answer:

8.95%

Explanation:

Data provided in the question:

Time, n = 29 years

Principle amount = $200,000

Future value = $2,400,000

Now,

Using the compounding formula

Future value = Principle × [ 1 + r ]ⁿ

here,

r is the interest rate

Thus,

$2,400,000 = $200,000 × [ 1 + r ]²⁹

or

[ 1 + r ]²⁹ = 12

taking the natural log both the sides, we have

29 × ln(1 + r) = ln(12)

or

ln(1 + r) = 0.08569

or

1 + r = $e^{0.08569}$

or

1 + r = 1.0895

or

r = 0.0895

or

r = 0.0895 × 100% = 8.95%

3 0

3 years ago

Write a claim that responds to the question: Why can transferring energy into or out of a substance change molecules' freedom of

nydimaria [60]

Answer:

hope this help u

Explanation:

Transferring energy into or out of a substance changes its temperature, which changes the molecules' freedom of movement. Claim 2: Transferring energy into or out of a substance changes the molecules' kinetic energy, which changes their freedom of movement.

8 0

3 years ago