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sashaice [31]
2 years ago
6

A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed by Lux Company on January 1

. The factory estimates the machine will produce 1,050,000 units of product during its life. It actually produces the following units for the first 2 years: year 1, 260,000; year 2, 275,000. What is the depreciation amount for year 2 under the double declining balance method
Business
1 answer:
Tasya [4]2 years ago
4 0

Answer:

$112,500

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)  

Depreciation expense in year 1 = 2/4 x $450,000 = $225,000

Book value at the beginning of year 2 =  $450,000 - $225,000 =  $225,000

Depreciation expense in year 2 = 2/4 x $225,000 = $112,500

You might be interested in
The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give the
Zielflug [23.3K]

Answer:

expectations theory

Explanation:

Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.

The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".

Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.

This theory helps investors to make profits faster and even higher through multiple investments on bonds.

Cheers.

8 0
2 years ago
Work environment includes physical and social aspects of work. true or false.
sleet_krkn [62]

i ant good but my teacher is cool and told my the answer

8 0
3 years ago
Mission Foods produces two flavors of tacos, chicken, and fish, with the following characteristics:
postnew [5]

Answer:

1. $858,000

2. Chicken = 24,000 units and Fish = 36,000 units

Explanation:

The computation is shown below:

1. The anticipated level of profits for the expected sales volumes is

= Expected sales of chicken × (Selling price per taco - Variable cost per taco) +  Expected sales of fish × (Selling price per taco - Variable cost per taco) - total fixed cost

= 200,000 × ($3 - $1.50) + 300,000 × ($4.50 - $2.25) - $117,000

= $300,000 + $675,000 - $117,000

= $858,000

2. The break even volume is

Let we assume the sale units be X

So, total units sold for chicken = 40X

And, for the fish it is = 60X

Sale units of chicken × (Selling price per taco - Variable cost per taco) + Sale units of chicken × (Selling price per taco - Variable cost per taco) = Total Fixed cost

0.40X × (3 – 1.50) + 0.60X × (4.50 – 2.25) = $117,000

0.60X + 1.35X = $117,000

1.95X = $117,000

So, the X is 60,000 units

So for chicken it is 60,000 × 40% = 24,000 units

And for fish it is 60,000 × 60% = 36,000 units

7 0
3 years ago
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth
Nimfa-mama [501]

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.

Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.

Hence, A. 1 and 4 are true

6 0
3 years ago
When Marcus sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approxim
Ugo [173]

Answer:

correct answer is (A) $85,000

Explanation:

given data

purchased house = $95,000

Empty lots area sold = $10,000

fair market value = $160,000

land price rise = $20,000

solution

we can say here that fair market value is more than the fair preface of home

so adjusted introduce will be explanation behind weakening

and

basis depreciation of the house will be

basis depreciation of the house = $95000 - $10000

basis depreciation of the house = $85000

so correct answer is (A) $85,000

5 0
3 years ago
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