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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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Companies raise capital in two main ways ___________.
choli [55]

Answer:

Two important ways are debt and equity

Explanation:

Companies has two ways in which they could raise the capital is debt which is an amount borrowed by one party from another and it is borrowed under a condition that is to be paid back at date which is decided along with the interest and equity is called as the shareholder equity which the amount that would be returned to the shareholders of the company if all the assets are liquidated.

7 0
3 years ago
In two or three sentences, describe how antitrust laws encourages competition
andreyandreev [35.5K]
Antitrust laws prevent monopolies. 
<span>A monopoly is a company or business that dominates a particular market to such an extent that there is no viable competition to that company. </span>
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<span>Antitrust laws break up or limit the size of monopolies, allowing other companies to enter a market.</span>
4 0
3 years ago
What do individual shareholders gain when they buy shares of a company’s stock?
olchik [2.2K]
It will definitely be A
6 0
3 years ago
During 2018, P Company discovered that the ending inventories reported on its financial statements were incorrect by the followi
const2013 [10]

Answer:

D. $30,000 overstated

Explanation:

Understatement of ending Inventory overstate the value of cost of Goods sold and understate the value of Net income and retained earning as well.

Overstatement of ending Inventory understate the value of cost of Goods sold and overstate the value of Net income and retained earning as well.

In 2016 the net income and retained earning was understated by $120,000.

In 2017 the net income and retained earning was overstated by $150,000.

Net Effect of both event in Retained earning at January 1, 2018

$150,000 overstated - $120,000 understated = $30,000 overstated

4 0
3 years ago
Big John’s manufacturing currently produces its lead product on a machine that has a variable cost of 0.32 per unit and a fixed
Greeley [361]

Answer:

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient,

Explanation:

Giving the following information:

Current machine:

Total cost= 75,000 + 0.32x

New machine:

Total cost= 150,000 + 0.28x

<u>To find the indifference point, we need to equal the cost functions and isolate x (number of units)</u>

75,000 + 0.32x = 150,000 + 0.28x

0.04x= 75,000

x= 1,875,000

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient.

6 0
3 years ago
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