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
ira [324]
3 years ago
9

Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-

balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.
Business
1 answer:
melisa1 [442]3 years ago
8 0

Answer:

A loss of $1400

Explanation:

The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.

The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100

=20%.

The double-declining rate will be 40%

The depreciation schedule for two years will be as follows.

Open. Bal Dep. rate Dep. Amount  Book value

$27,500  40%  $11,000   $16,500.00

$16,500  40%  $6,600             $9,900.00

The equipment was sold for $8,500

net gain or loss will be the selling price - book value

=$8,500 - $9,900

=- $1,400

A loss of $1400

You might be interested in
Successful firms of today would ?
MaRussiya [10]
The correct answer that would best complete the given statement above would be: EMBRACE CHANGE. Successful firms today would embrace change. Hope this answer helps.
This question supposed to have given options which are the following:
a.embrace change 
b.focus on generating short-term profits 
c.take risks
d.avoid new opportunities if what they are currently doing works <span>well</span><span>.
Thank you for posting your question.</span><span /><span /><span />
8 0
3 years ago
Your team leader puts a suggestion box in the break room. At team meetings, he lists all the reasons why the suggestions can't b
qaws [65]
Hold on let me go do my research I’ll brb .
6 0
3 years ago
Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not c
lord [1]

Answer:

Find the explanation below.

Explanation:

The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:

1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.

2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.

3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.

4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.

When these measures are considered, there would be a significant improvement in the production department.

8 0
3 years ago
The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the p
tiny-mole [99]

Answer:

Effect on income= -$22,000 decrease

Explanation:

Giving the following information:

Contribution margin $30,000

Fixed expenses ($40,000)

Net operating loss ($10,000)

<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>

<u></u>

Effect on income= avoidable fixed costs - contribution margin

Effect on income= 8,000 - 30,000

Effect on income= -$22,000 decrease

5 0
3 years ago
You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your compan
VikaD [51]

Answer:

$5,225,417

Explanation:

first payment 800000

1 quarter         250000

2 quarters 254000

3 quarters 258064

4 quarters 262193

5 quarters 266388

6 quarters 270650

7 quarters 274981

8 quarters 279380

9 quarters 283851

10 quarters 288392

11 quarters 293006

12 quarters 297694

13 quarters 302458

14 quarters 307297

15 quarters 312214

16 quarters 317209

17 quarters 322284

18 quarters 327441

19 quarters 332680

20 quarters 338003

11% = (1 + i/4)⁴

i = 0.106

quarterly interest = 2.65%

Now we need to determine the present value of this  annuity and our discount rate is 2.65%. I will use an excel spreadsheet to determine the present value of the 20 quarterly payments and then add the initial payment.

$4,425,417 + $800,000 = $5,225,417

5 0
3 years ago
Other questions:
  • If staff salaries were $32,000/month last year and $47,000/month this year, what is the total yearly labor cost increase?
    12·1 answer
  • Select all that apply. Which roles come through choices? husband or wife son or daughter sibling mother or father peacemaker or
    13·2 answers
  • The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n
    12·1 answer
  • A certain office supply store stocks 2 sizes of self-stick notepads, each in 4 colors: Blue, Green, Yellow Or Pink. The store pa
    12·1 answer
  • Dave has been suggested to assume his firm is operating at full capacity and its net fixed assets can be added by any amount. Th
    13·1 answer
  • The U.S. consumer market is large, but other markets may offer what advantage?
    7·2 answers
  • How do you professionally create and format a cover letter​
    8·1 answer
  • The best cooling methods include all the following except
    15·2 answers
  • Before beginning to prepare for her upcoming presentation, Kay contacts the venue to determine what technology will be available
    11·1 answer
  • Besides starting the vehicle, what else can 2022 versa’s available remote engine start in do?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!