Answer:
The correct answer is A) $2.800
Explanation:
Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:
- Finding the depreciable cost:
![Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000](https://tex.z-dn.net/?f=Depreciable%20cost%20%3D%20purchase%20price%20%28%2470%2C000%29%20-%20salvage%20value%20%28%2414%2C000%29%20%3D%20%2456%2C000)
- Finding the depreciation per year:
![Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000](https://tex.z-dn.net/?f=Depreciation%2Fyear%20%3D%20%5Cfrac%7BDepreciable%20cost%20%2856%2C000%29%7D%7BAsset%20useful%20life%20%287%20years%29%7D%20%3D%20%248000)
- Finally, the depreciation tax shield for 2018:
![Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800](https://tex.z-dn.net/?f=Depreciation%20tax%20shield%20%3D%20Dep%2Fyear%20%28%248%2C000%29%20%2A%20tax%20rate%20%280%2C35%29%20%3D%20%242%2C800)
Answer:
Total cost= $877,500
Explanation:
<u> First, we need to calculate the unitary variable cost:</u>
Unitary variable cost= 135,000 / 30,000= $4.5
Unitary variable cost= 180,000 / 40,000= $4.5
Unitary variable cost= 225,000 / 50,000= $4.5
<u>Now, the total cost for 35,000 hours:</u>
Total cost= Unitary variable cost*total number of hours + fixed costs
Total cost= 4.5*35,000 + 720,000
Total cost= $877,500
Answer: $2650
Explanation:
Using the specific identification method, its ending inventory (after the December 24 sale) will be:
Units for sale = 5 units
Units sold = 1
It should be noted that the unit that was sold was the one that was bought on July 9th.
Ending units will now be:
= $800 + ($2 × $900) + $950 - $900
= $800 + $1800 + $950 - $900
= $3550 - $900
= $2650
Answer: $1,700
Explanation:
The expected winning bid is the weighted average of the 2 different bids.
Half of the bids are for $1,500 so weight of $1,500 is 0.5.
Half of the bids are for $1,900 so weight of $1,900 is 0.5.
Expected Winning bid = (1,500 * 0.5) + ( 1,900 * 0.5)
= 750 + 950
= $1,700
Debtors are granted some measures or rights. The option that is not a legal right of a debtor is right to declare bankruptcy.
- A lot of creditors often do not obey simple rules, and thus uses some kind of deceptive or intimidating actions so as to recover money they are owed.
- A lot of creditors often uses threats of violence in trying to recover debt.
In the State of California’s Rosenthal Act, one, as a debtor, is known to have the right to be free from harassing letters and calls from creditors and collection agencies because of unpaid debt.
it is known to stop creditors from constantly disturbing one at home or sending threatening letters on a regular basis.
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