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Elena L [17]
3 years ago
6

Marlow Company purchased a point of sale system on January 1 for $5,800. This system has a useful life of 5 years and a salvage

value of $600. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?
Business
1 answer:
xz_007 [3.2K]3 years ago
7 0

Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

The depreciation rate under double declining is = 0.2 × 2 = 0.4

Depreciation expense for the first year = 0.4 × $5800 = $2320.

At the beginning of year two, net book value = $5800 - $2320 = $3480

Depreciation expense for year two = 0.4 × $3480 = $1392

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When an insured stops making the payments on the loan taken his cash value policy will terminate when the loan amount with interest equals or exceeds the cash value

Explanation:

Cash value policy are the type of saving policy and they provide the life time coverage of the policy holders most cash values have high premiums than the insurance

It requires a fixed level premium payment and the from that amount the money is allocated for different reasons according to the wish of the policy holder and the remaining amount is deposited as the cash value amount

8 0
3 years ago
Question ObjectivesTest side bar expand button Q 3.2: According to the historical cost principle, if an asset costs $50,000 when
harkovskaia [24]

Answer:

A.

Explanation:

The cost principle means that in accounting, any transaction is recorded at the historical purchase price.

A fair value is the amount at which an asset could be exchanged in an arm´s length transaction between knowledgeable and willing parties.

Revaluation of fixed assets is not allowed for GAAP.

An appreciated value is an increase in the value of an asset over time.

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3 years ago
Margin of Safety The Ira Company has sales of $800,000, and the break-even point in sales dollars is $664,000. Determine the Ira
attashe74 [19]

Answer:

17%

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Margin of safety = (sales - sales at break-even point ) / sales × 100 = $ 800 000 - $ 664 000 / $ 800 000 × 100  = 17%

7 0
3 years ago
1 - At the Montell Company, functions are divided into areas of specialization such as production, marketing, accounting, and fi
Sedbober [7]

At the Montell Company, since the functions are divided into areas of specialization such as production, marketing, accounting, and finance, it reflects Fayol's principle of <u>division of labor. </u>

Max Weber used the term <u>bureaucrats</u> to describe middle managers. Their job is usually to implement the orders that they get from top management.

It should be noted that division of labor is when the roles that'll be performed in an organization are divided into various departments. This is done in order to make the job easier and faster.

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brainly.com/question/25523750

7 0
2 years ago
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th
Ronch [10]

Answer:

you should accept the payments because they are worth $56,451.91 today

Explanation:

We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn

Then, the value of the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 641.00

time 120 (12 months x 10 years)

rate 0.005416667

641 \times \frac{1-(1+0.00541666666666667)^{-120} }{0.00541666666666667} = PV\\

PV $56,451.9083

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3 years ago
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