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slava [35]
2 years ago
13

Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sol

d. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018
Business
1 answer:
Dmitry_Shevchenko [17]2 years ago
4 0

Answer:

Depreciation expense= $36,875

Explanation:

Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.

<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>

Annual depreciation:  

= (cost of assets - salvage value)/ Estimated useful life

Cost - 220,000

Residual value = 43,000

Estimated useful life = 4 years

Annual depreciation = (220,000- 43,000)/4 =44,250

Annual depreciation = 44,250.

<em>Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month. </em>

<em>Thus March 17, 2018 to December 2018 is taken to be 10 full months</em>

Depreciation expense = 44,250.× 10/12 = 36,875

Depreciation expense= $36,875

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DochEvi [55]

Answer:

A

Explanation:

I don't have a explanation

7 0
1 year ago
héctor manages a plastics factory that manufactures pet chew toys. senior management has decided to change the company’s bonus s
alexgriva [62]

Calling a face-to-face meeting with the employees is the best way that Hector can announce about change of the bonus structure.

Face-to-face meeting is a type of meeting where the participant of discussion are all present physically therein.

The major advantage of the Face-to-face meeting is that its allows effective communication and feedback from or among the participants

Therefore, the correct answer is Option B because it is the best way by which Hector can announce about change of bonus structure.

The missing options includes <em>"Héctor should send each employee a personal note, Héctor should call a face-to-face meeting with the employees, Héctor should send a companywide e-mail, Héctor should post an announcement in the break room, near the coffee machine."</em>

<em />

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<em>brainly.com/question/14617264</em>

6 0
2 years ago
Texas Oil Company (TOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels of oil. Oil production is expected t
IrinaK [193]

Answer: Please see answer below

Explanation:

<u>Oil Reserve </u>$3,000,000 for year 1, 2, 3

<u> Accumulated Depletion </u>

Year 1 = $3,000,000/50,000 X 10,000= $600,000

Year 2 = 3,000,000/50,000 X 30,000+600,000=$2,400,000

Year 3 =3,000,000/50,000 X 10,000+ 2,400,000= $3,000,000

<u>Oil Reserve</u>

Year 1 =$3000000- $600,000=$2,400,000

Year 2, $3,000,000- $2,400,000=$600,000

Year 3= $3,000,000 -$3, 000,000=$0

<u>Net Oil Inventory</u>

Year 1= $600,000

Year 2 $2,400,000

Year 3= $3,000,000

                                          Year 1          Year 2         Year 3

Oil Reserve        $3,000,000          $3,000,000      $3,000,000

Accumulated Depletion $600,000   $2,400,000     $3,000,000

Oil Reserve,               $2,400,000             $600,000         $0

Net Oil Inventory      $600,000        $2,400,000     $3,000,000

4 0
3 years ago
Top management at Prinze Auto Sales has decided to replace their traditional marketing approach with an approach that emphasizes
Citrus2011 [14]

Answer:

2. False

Explanation:

Relationship management is considered an important part of CRM (customer relationship management) and it emphasizes on building and increasing customer loyalty and long term commitment.

If this company was to replace their traditional marketing approach with relationship marketing, they would devote more time to build a solid relationship with existing customers and less time searching for new customers.

5 0
3 years ago
Bruno's Lunch Counter is expanding and expects operating cash flows of $26,900 a year for 6 years as a result. This expansion re
8090 [49]

Answer:

Net present value of this expansion project is 8234.

Explanation:

To get the net present value,  we make a cash-flow in excel. See document attached.

At moment 0 the investment is =$(92.700), also we consider the working capital =(6.600)

Moment 1 to 6 = $26.900

We calculate the Net cash flow (that is the difference between benefits and cost).

To get net present value, we use VNA formula.  ( =VNA(required rate of return; Net cash flow from moment 0 to moment 6) +Net cash flow at moment 0)

Net present value is 8234

4 0
3 years ago
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