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
Viktor [21]
3 years ago
14

A delivery van costing $37,000 is expected to have a $2,900 salvage value at the end of its useful life of five years. Assume th

at the truck was purchased on January 1. Compute the deprecation expense for the first two calendar years under the following deprecation methods. A. Straight Line B. Double-declining- balance
Business
1 answer:
valkas [14]3 years ago
8 0

Answer:

A.

Depreciation expense for the first year: $6,820

Depreciation expense for the second year: $6,820

B.

Depreciation expense for the first year: $13,640

Depreciation expense for the second year: $8,184

Explanation:

A. The company uses straight-line depreciation method, Depreciation Expense each year is calculated by following formula:  

Annual Depreciation Expense = (Cost of delivery van − Salvage Value )/Useful Life = ($37,000 - $2,900)/5 = $6,820

Depreciation expense for the first year: $6,820

Depreciation expense for the second year: $6,820

B. The company uses Double-declining- balance method

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total asset cost - salvage value =  $37,000 - $2,900 = $34,100

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for the first year = $34,100 x 40% = $13,640

At the beginning of second year, the Depreciable cost's book value is $34,100-$13,640 = $20,460

Depreciation expense for the second year = $20,460 x 40% = $8,184

You might be interested in
When making replacement decisions, the development of relevant cash flows is complicated when compared to expansion decisions.
fgiga [73]

Answer: True

Explanation:

Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.

Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.

4 0
3 years ago
Lucia's bank offers a savings account with a 1.9% APR, compounded monthly. What is the actual percentage yield on this account?
alexira [117]
I've taken this quiz, 1.92% is the right answer.
5 0
3 years ago
Read 2 more answers
If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities c
Hatshy [7]

If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities curve between x and y would be bowed outward.

The law of increasing possibility fee: As you increase the manufacturing of 1 appropriate, the opportunity fee to provide the additional precise will boom.

First, understand that opportunity price is the fee of the following-high-quality alternative when a decision is made; it's what's given up.

When the economy grows and all other matters continue to be steady, we are able to produce greater, so this will motivate a shift in the manufacturing opportunities to curve outward, or to the proper.

Learn more about production here: brainly.com/question/26460726

#SPJ1

5 0
1 year ago
Which of the following would the U.S. Bureau of Labor Statistics define as a discouraged worker?
Svet_ta [14]

Answer:

d) Mary, who was laid off last year and who was looking for a full-time job until last month

Explanation:

In the United States, a discouraged worker is defined as a person not in the labor force who wants and is available for a job and who has looked for work sometime in the past 12 months (or since the end of his or her last job if a job was held within the past 12 months), but who is not currently looking because of real or perceived poor employment prospects.

6 0
3 years ago
Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden is considering borrowing fund
Alexxandr [17]

Answer:

Option (C) is correct.

Explanation:

We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.

Cost of equity:

= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)

At the beginning, when there was no debt,

WACC = cost of equity = 12 %

Levered cost of equity:

= 12% + ( 12% - 6%) × 0.5

= 15%

Therefore, Rearden's levered cost of equity would be closest to 15%.

4 0
4 years ago
Other questions:
  • What quality does an organizational structure reflect?
    14·2 answers
  • Victor Lorenz realizes that he needs a new car, so he has read through Consumer Reports and has visited selected dealerships to
    11·1 answer
  • In a perpetual inventory system, when merchandise is returned to the supplier, cost of merchandise sold is debited as part of th
    11·1 answer
  • What tax does the lower class pay little in, making the middle income pay more?
    12·1 answer
  • Cadmia and Rhodia specialize in the production of electronics and pharmaceutical products respectively. They are considered the
    11·1 answer
  • Add and simplify 9/19= 1/2
    11·1 answer
  • On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The
    10·1 answer
  • Find any example of a real project with a real project manager. Feel free to use projects in the media (such as the Olympics, te
    10·1 answer
  • Hammerhead Inc. uses practical capacity as the denominator to set the cost of supplying capacity and for the current period the
    7·1 answer
  • If $25,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!