Answers
Answer:
option (b) $13,500
Explanation:
Data provided in the question:
Cost of the plant asset = $96,0003
Salvage value = $12,000
Useful life = 8 years
Now,
using the double-declining-balance method
Depreciation rate =
or
Depreciation rate =
or
Depreciation rate = 0.25 or 25%
Thus,
For year 1
Depreciation expense = Depreciation rate × year book value
= 0.25 × $96,000
= $24,000
Book value for year 2 = $96,000 - $24,000 = $72,000
For year 2
Depreciation expense = Depreciation rate × year 2 book value
= 0.25 × $72,000
= $18,000
Book value for year 3 = $72,000 - $18,000 = $54,000
For year 3
Depreciation expense = Depreciation rate × year 3 book value
= 0.25 × $54,000
= $13,500
Hence,
The correct answer is option (b) $13,500
Related Questions
Williams Company pays each of its two office employees each Friday at the rate of $240 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
The ________ summarizes what has been found during the systems analysis phase, provides cost/benefit analyses of alternatives, and makes recommendations on what should be done.
Divine Apparel has 2,600 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.
Aggregate Planning is a. the activity of developing a plan that combines the efforts of the firm and its suppliers. b. the activity of developing a plan that combines the efforts of the firm and its distributors. c. the activity of matching supply of output with demand over the medium time range. d. the activity of matching supply of output with demand over the short time range. e. All of the above.
Answers
Answer:
$30,000
Explanation:
Calculation for the amount of equity income to reported
Using this formula
Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]
Let plug in the formula
Equity income = [($120,000 ×(15%+ 10%)]
Equity income = ($120,000 ×25%)
Equity income= $30,000
Therefore the amount of equity income to reported for 2012 will be $30,000
Answers
Answer:
FDI
Explanation:
Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country. A foreign direct investment can be made by obtaining a lasting interest or by expanding one’s business into a foreign country.
Answers
Answer:
The correct answer is: The expected rate of return for the stock would be around 7%.
Explanation:
The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.
In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.
Final answer:
The rate of return on the stock would decrease proportionally to its beta value in response to the market return being lower than expected. Given the stock's beta of 0.8 and the market return falling 5 percentage points below expectations, the new estimated rate of return on the stock would be 8%.
Explanation:
The rate of return on a stock can be affected by changes in market conditions. If the market return this year is lower than expected, this could affect the return on the particular stock in question, which has a beta of 0.8. The beta value of a stock measures its sensitivity to market movements, with a value less than 1 indicating that the stock is less volatile than the market. Given the expected return of 12%, a market return 5 percentage points below expectations implies that the new expected return on the stock would decrease proportionally to its beta. This can be calculated as 12% - (0.8 * 5%) = 12% - 4% = 8%. Therefore, if the market return is 5 percentage points below expectations, your best guess for the rate of return on the stock would be 8%.
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B. Manager salaries.
C. Insurance.
D. Direct materials.
E. Straight-line depreciation.
Answers
Answer:
Correct answer is D. Direct materials
Explanation:
Among the given choices, direct materials is most likely to be classified as variable cost. Direct materials are the supplies used in manufacturing products which can be directly identified in the output production. It is a main component which is traceable to create or produce products. Basically, all manufacturing industries used direct materials as their variable cost in their production.
How many units were completed in June?The equivalent units for materials under the weighted-average method are calculated to be?
Answers
Answer:
a) 14,300 units
b)
Materials: 18,400
Conversion: 16,350
Explanation:
physical count of units:
beginning 2,100
transferred-in 16,300
ending (4,100)
transferred-out 14,300
equialent units for w/a:
transferred-out + percentage of completion ending WIP
Materials: 14,300 + 4,100 x 100% = 18,400
Conversion: 14,300 + 4,100 x 50% = 16,350
b. Cash receipts from sales, $264,000.
c. Budgeted cash disbursements for purchases, $138,000.
d. Budgeted cash disbursements for salaries, $80,000.
e. Other budgeted expenses, $15,000.
f. Cash repayment of bank loan, $10,000.
g. Budgeted depreciation expense, $25,000.
Answers
Answer:
$47,000
Explanation:
The cash budget is a forecast of the company's expected movement in cash considering the expected outflows and inflows. This movements result in a change between the opening and ending cash balance. This may be expressed mathematically as
Opening balance + Cash receipts - Cash disbursed = ending balance
Cash receipts for the period
= $264,000
Cash disbursed
= $138,000 + $80,000 + $10,000 + $15,000
= $243,000
ending balance = $26,000 + $264,000 - $243,000
= $47,000