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Ahat [919]
3 years ago
6

Saul Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated l

ife of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,200 hours in 2020. What method of depreciation will produce the maximum depreciation expense in 2019?
a. Units-of-production
b. Double-declining-balance
c. Straight-line
d. All methods produce the same expense in 2019
Business
1 answer:
Mila [183]3 years ago
5 0

Answer:

b. Double-declining-balance

Explanation:

There is no harm in trying out all the methods and see for your self the one that will produce the maximum depreciation expense in 2019.

Units-of-production

Depreciation Expense = Units taken in the Period / Expected total amounts in units × Depreciable Amount (Cost - Salvage Value)

Therefore,

Depreciation Expense = 2,400 hours / 12,000 hours × ( $180,000 - $20,000)

                                      = $32,000

Double -declining-balance

Depreciation Expense = 2 × SLDP × BVSLDP

SLDP = 100 ÷ Number of useful Life

         = 100 ÷ 8

         = 12.5 %

Therefore,

Depreciation Expense = 2 × 12.5 % × $180,000

                                      = $45,000

Straight Line

Depreciation Expense = Cost - Residual Value ÷ Estimated Useful Life

                                     = ($180,000 - $20,000) ÷ 8 years

                                     = $20,000

<u>Conclusion</u>

As can be seen from the above calculation, Double-declining-balance produce the maximum depreciation expense in 2019.

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During 2021, Bramble Corp. had the following activities related to its financial operations: Carrying value of convertible prefe
BigorU [14]

Answer:

the net cash used in financing activities is -$3,803,000

Explanation:

The computation of the net cash used in financing activities is shown below:

= Payment of cash dividend - payment for early retirement + proceeds from the sale of treasury stock

= -$280,000 -$3,974,000 +  $451,000

= -$3,803,000

hence, the net cash used in financing activities is -$3,803,000

WE simply applied the above formula

3 0
3 years ago
Definetion of inhumane
dem82 [27]
The definition of inhumane is something cruel and unkind
4 0
3 years ago
Read 2 more answers
Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. S
stira [4]

The question is incomplete:

Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.

-Good guy-bad guy routine

-Browbeating

-Red herring

-Trial balloon

-Lowballing

Answer:

-Red herring

Explanation:

-Goog buy-bad guy routine is a strategy in which one person appears to be on your side and when you get to an agreement, this person goes to the bad guy for approval who will renegotiate.

-Browbeating is a strategy in which the buyer tries to affect the saleperson atittude by saying unflattering things.

-Red herring is a strategy in which one of the parties tries to distract the other one from certain isues to get an advantage.

-Trial balloon is an strategy in which one of the parties says something to the other one to get information about its position in the negotiation.

-Lowballing is an strategy in which the buyer makes a really low offer to test the seller.

According to the definitions, the answer is that the win-lose strategy used by the salesperson is red herring because Clara didn't consider the information related to the delivery when purchasing the units as she was probably distracted by other aspects and didn't consider this.

5 0
2 years ago
What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where
Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0
3 years ago
Based on his​ preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8
nexus9112 [7]

Answer:

The correct option is option e)

not trade movie tickets for basketball tickets because his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

Explanation:

The cost of one movie ticket is $8 then Bills' four tickets will be $32.

The cost of a basketball ticket is $28.

Therefore if bill should trade 4 movie tickets for a basketball ticket he will make a loss of $ 4 so it is advisable for bill not to trade movie ticket for basketball ticket. And again his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

6 0
3 years ago
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