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
stira [4]
3 years ago
10

The FOURX Corp. has purchased $50,000 of experimental equipment. The anticipated salvage value is $5500 at the end of its 5-year

depreciable life. This profitable corporation is considering two methods of depreciation: straight-line and double declining balance. If it uses 10% interest in its comparison, which method do you recommend?
a. NPW(SL): $37,908; NPW(DDB): $37,068; Recommendation: SL
b. NPW(SL): $33,738; NPW(DDB): $37,068; Recommendation: DDB
c. NPW(SL): $33,738; NPW(DDB): $26,551; Recommendation: SL
d. NPW(SL): $33,738; NPW(DDB): $38,069; Recommendation: DDB
Business
1 answer:
Anestetic [448]3 years ago
5 0

Answer:

b. NPW(SL): $33,738; NPW(DDB): $37,068; Recommendation: DDB

Explanation:

The computation is shown below:

As we know that

Present value is

=  [Cash Flow ÷ (1 + Rate of Interest)^Year]

where,

Rate of Interest = 10%

Under Straight-line depreciation:

Beginning book value = $50,000

Salvage value = $5,500

So, the depreciationper year is

=  [($50,000 - $5,500) ÷ 5]

= $8,900

<u>Year    Beginning   Depreciation  End                 Present value </u>

<u>            book value                  book value of depreciation </u>

1            $50,000      $8,900        $41,100             $8,090.91

2           $41,100         $8,900        $32,200           $7,355.37

3           $32,200       $8,900         $23,300           $6,686.70

4           $23,300       $8,900         $14,400           $6,078.82

5           $14,400        $8,900         $5,500              $5,526.20

                                                                                  $33,738.00

Under Double declining depreciation:

Depreciation rate per year = (1 ÷ Useful  Life) × 100

= 1 ÷ 5 × 100

= 20%

Now for double-declining, the rate is doubled

So,

= 20% × 2

= 40%

<u>Year    Beginning   Depreciation  End                 Present value </u>

<u>            book value                  book value of depreciation </u>

1            $50,000      $20,000       $30,000           $18,181.82

2           $30,000       $12,000       $18,000            $9,917.36

3           $18,000       $7,200         $10,800            $5,409.47

4           $10,800       $4,320         $6,480             $2,950.62

5           $6,480       $980              $5,500            $608.50

                                                                                $37,068

You might be interested in
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, $120 of previ
Mekhanik [1.2K]

Answer:

=$140

Explanation:

At the beginning of the year, the account had a credit(positive balance of $760)

Previously bad debt that has been reinstated, $120

The new balance will be $760 + $120 = $860

adjusting for the written-off accounts

=$860 - $740

=$140

3 0
3 years ago
Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is exci
EastWind [94]

Answer:

Public Company

Explanation:

In the given case, since it is mentioned that Gloria working for GlenMack now as a part of the signing bonus she received twenty shares from the stock of GlenMack now she is excited to contribute to the company and also wants to track the shares value on the new york stock exchange so here the Glenmust must be public company as the stock are listed on the stock exchange

So the same is to be relevant

3 0
3 years ago
Social surplus is the​ ____________. A. total value from trade in a markettotal value from trade in a market. B. difference betw
shepuryov [24]

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>

<em />

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

4 0
3 years ago
Match each of the numbered descriptions with the term or phrase it best reflects. Indicate your answer by writing theletter for
Temka [501]

Please the remaining part of the question below :

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues.

2.An examination of an organization’s accounting system and records that adds credibility to financial statements.

3.Principles that determine whether an action is right or wrong.

4.Accounting professionals who provide services to many clients.

5.An accounting area that includes planning future transactions to minimize taxes paid.

Answer:

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues. - Net income (G)

2.An examination of an organization’s accounting system and records that adds credibility to financial statements. - Audit (A)

3.Principles that determine whether an action is right or wrong. - Ethics (C)

4.Accounting professionals who provide services to many clients.- Public accountants (F)

5.An accounting area that includes planning future transactions to minimize taxes paid- Tax accounting (D)

Explanation:

6 0
3 years ago
Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel:
san4es73 [151]
The answer is they quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country when companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel.
4 0
3 years ago
Other questions:
  • Rachel Bailey was quickly hired out of Santa Clara University during the dot-com boom to a company of 100 employees that ran an
    14·1 answer
  • Anne owns a business that trades in perishable commodities. Which property would Anne be interested to invest in? office buildin
    10·1 answer
  • Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll
    10·1 answer
  • Carol was recently fired from her job as a purchaser for a grocery store. she was told the reason for her dismissal was the almo
    9·2 answers
  • A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
    7·2 answers
  • The last dividend on Spirex Corporation's common stock was $4.00, and the expected growth rate is 10 percent. If you require a r
    11·1 answer
  • The stock in Pal-Maine Foods has a beta of .85. The expected return on the market is 11.50 percent and the risk-free rate is 2.8
    9·1 answer
  • Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. W
    9·1 answer
  • Which of the following is most likely to cause structural unemployment?
    10·1 answer
  • The process by which ANZ bank's internal job descriptions are matched to external jobs with similar responsibilities to identify
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!