__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec

choli [55]

Answer:

Explanation:

The computation of the depreciation expense under straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($42,000 - $1,990) ÷ (5 years)

= ($40,010) ÷ (5 years)

= $8,002

In this method, the depreciation is same for all the remaining useful life

The journal entries are shown below:

For 2019

Depreciation expense A/c Dr $8,002

To Accumulated Depreciation A/c $8,002

(Being depreciation expense is recorded)

For 2020

Depreciation expense A/c Dr $8,002

To Accumulated Depreciation A/c $8,002

(Being depreciation expense is recorded)

5 0

3 years ago

You just received a bonus at your job of $4,000 which you decide to put in a saving account at the local bank. Assume that banks

ioda

Answer:

(A) 22,222.22

(B) 57,142.86

Explanation:

we will divide the deposit by the reserve requirement to know how much will expand the money supply.

4,000/0.18 = 22,222.22

4,000/0.07 = 57,142.86

The reasoning behind this multiplier effect is the following:

you deposit 4,000

the bank leave 18% = 920

And lend the remaninder: 3,080

Then, when this are deposit, again takes the minimun reserve and lend the remainder:

3,080 x 18% = 554.4

3,080 - 554.4 = 2,525.6

This process is repeated giving diminished amount to money available to lend. Thus, finding a limit on the division between fund and reserve requirement.

4,000/0.18 = 22,222.22

6 0

3 years ago

You and your friend are traveling home, you discuss how each of you might otherwise have used the four hours devoted to attendin

nekit [7.7K]

The relevant opportunity costs for you and your friend for allocating four hours to attending the concert are<u> "watching a sporting event on TV for you and studying for your friend. "</u>

An opportunity cost is characterized as the estimation of a forgone action or elective when another thing or action is picked. Opportunity cost becomes possibly the most important factor in any choice that includes a tradeoff between at least two alternatives. It is communicated as the relative cost of one option as far as the next best option.

6 0

3 years ago

If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc

ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

A B

First Cost $5,000 $9,200

Uniform Annual Benefit $1,750 $1,850

Useful life, in years 4 8

Rate of return 7% 7%

Annuity factor 3.387 5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow $927.25 $1,846.35

b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0

3 years ago

Hyundai is considering opening a plant in two neighboring states. Option 1: One state has a corporate tax rate of 10 percent. If

lana [24]

Answer:

It seems that something is missing in question i.e b) what is the after state taxes profit in the state with the 2% tax rate.

Answer for both requirement is given below in explanation with calculation.

Explanation:

A) After tax profit where state tax is 10%

The after tax profit will be 1,278,000$ (1420000*90%)

B) After tax profit where state tax is 2%

the after tax profit will be 1,352,400$ (1380000*98%)

So we can conclude that option 2 is better because it gives greater after tax profit.

5 0

3 years ago