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Serggg [28]
3 years ago
8

Depreciation--Jerry Company purchased machinery for $315,000 on May 1,2020 . It is estimated that it will have an useful life of

5 years, and a salvage value of $15,000. the machine is expected to last 100,000 hours. The machine was used for 25,000 hours the first year. What is the depreciation for the first year assuming working hours method (activity method) is expected to be used
Business
1 answer:
Gemiola [76]3 years ago
6 0

Answer:

The depreciation for the first year is $75,000

Explanation:

In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.

First, we need to calculate the Depreciable value

Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000

Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000

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Oleander Corporation, a calendar year entity, begins business on March 1, 2019. The corporation incurs startup expenditures of $
jek_recluse [69]

Answer:

$3,556

Explanation:

Because the startup expenditure is above $50,000, the startup expenditures which are not deducted may be amortized over a period of 180 months starting from the beginning of trade.

This is calculated as the startup cost is divided by the total number of months allowed to be amortized and the answer is then multiplied by the months traded during the year. In the case provided the months in which the Oleander Corporation has been trading are 10 months starting from March-December 2019.

Amortizable amount {($64,000 / 180 months) * 10 months}

= $3,556 this is total deduction allowed as startup expenditure.

8 0
3 years ago
Read 2 more answers
Determine whether the following would be reported in the financing activities section of the statement of cash flows and, if so,
Marat540 [252]

While you buy a bond, you're loaning cash to both a government and a corporation. whilst these entities first difficulty the bonds, they're bought at "par", which means you lend, say, $a hundred, and at the adulthood of the bond, you'll acquire $100 lower back. at the time of the difficulty, the coupon charge is also set, primarily based on modern-day interest quotes and the entity's credit score. This determines the yearly or semiannual quantity you will acquire when buying the bond.

A bond can be bought on the secondary market before adulthood. however, the price of this bond will promote greater than par (i.e. a premium) if present-day interest quotes decrease than what they had been while the bond was issued and less than par if interest fees have gone up (i.e. a reduction).

An example, a bond is issued these days, maturing in 10 years with an annual coupon of five%. In 5 years, hobby fees have risen to 7%, so someone shopping for the bond with a five% coupon would demand a discount at the face price (in any other case, they could just buy the 7% bond at par).

Learn more about bond here: brainly.com/question/25965295

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7 0
2 years ago
The coordinating conjunctions that can be used to combine two complete sentences with a comma are âfor, and, nor, but, or, yet,
stealth61 [152]
This is true. You can use the acronym FANBOYS to remember <span />
3 0
3 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
3 years ago
In terms of the increasing complexity in media buying and selling, _____ often employ(s) communications vehicles outside traditi
Cerrena [4.2K]

Answer:

Value-added packaging

Explanation:

Value-added packaging is self-explanatory, you try to make a packaging that adds more value to the customer. Since every customer will see the package, you can reach them more than traditional media planning. The value itself can vary widely. By making an artistic design, the customer can better impression about the product. A premium looked packaging will show more prestige to the customer. Some creative packaging can efficiently save space while still protecting the product.

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3 years ago
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