a) The machine's book value at the end of year 3, using the straight-line method, is $130,000.
b) The machine's book value at the end of year 3, using the units-of-production method, is $94,000.
b) The machine's book value at the end of year 3, using the double-declining-balance method, is $50,000.
Cost of machine = $400,000
Estimated residual value = $40,000
Depreciable amount = $360,000 ($400,000 - $40,000)
Estimated useful life = 4 years
Annual depreciation expense = $90,000 ($360,000/4)
Accumulated depreciation after three years = $270,000 ($90,000 x 3)
The book value after three years = $130,000 ($400,000 - $270,000)
Estimated useful life = 20,000 machine hours
Total hours that the machine ran in three years = 17,000 hours
Depreciation expense per machine hour = $18 ($360,000/20,00)
Accumulated depreciation = $306,000 ($18 x 17,000)
The book value after three years = $94,000 ($400,000 - $306,000)
Annual depreciation rate = 50% (100/4 x 2)
First-year depreciation expense = $200,000 ($400,000 x 50%)
Second-year depreciation expense = $100,000 ($200,000 x 50%)
Third-year depreciation expense = $50,000 ($100,000 x 50%)
Accumulated depreciation = $350,000
The book value after three years = $50,000 ($400,000 - $350,000)
Learn more about depreciation methods at brainly.com/question/25806993
Answer: $130,000
$205,600
$50,000
Explanation:
Depreciation expense using the straight line depreciation method = (Original cost of asset - Salvage value) / useful life
Depreciation expense = ( $400,000 - $40,000) / 4 = $90,000
Net book value for year 1 =$400,000 - $90,000 = $310,000
Net book value for year two = $310,000 - $90,000 = $220,000
Net book value for year 3 = $220,000 - $90,000 = $130,000
Deprecation expense using the unit of production method = [ (Original cost of asset - Salvage value) / total estimated productive capacity] × actual productive use of asset
($400,000 - $40,000) / 20,000 = $18
Depreciation expense for year 1 = $18 × 3000 =$54,000
Net book value for year 1 = $400,000 - $54,000 = $346,000
Depreciation expense for year 2 = $18 × 1800 = $32,400
Net book value for year two = $346,000 - $32,400 = $313,600
Depreciation expense for year 3 = $18 × 6000 = $108,000
Net book value for year three = $313,600 - $108,000 = $205,600
In the double declining method = 2 × (1/number of years ) =2 × (1÷4) = 0.5
Deprecation expense using the double declining method = 0.5 × net book value
Depreciation expense for year 1 = 0.5 × $400,000=$200,000
Net book value for year 1 = $400,000 -$200,000=$200,000
Depreciation expense for year two = $200,000 × 0.5 = $100,000
Net book value for year two = $200,000 - $100,000 = $100,000
Depreciation expense for year 3 = $100,000 × 0.5 =$50,000
Net book value for year three = $100,000 - $50,000 = $50,000
Answer:
The correct option is B. $1,012,303
Explanation:
For computing the net amount, the following calculations are need to be done which is shown below:
1. Calculation the total value of bond which equals to
= Issue amount × price
= $1,042,000 × (97 ÷ 100)
= $1,010,740
2. Now compute the discount which shown below:
= Issue amount - total value
= $1,042,000 - $1,010,740
= $31,260
3. Then, compute the semiannual discount amount by applying the straight line method
= Discount value ÷ number of years
where,
number of year would be multiply by 2 = 2 × 10 = 20 years
So, the value would be equal to
= $31,260 ÷ 20 years
= $1,563
4. So, the net amount would be
= Total value of bond + semiannual discount
= $1,010,740 + $1,563
= $1,012,303
Hence, the net amount will be reported for the bonds on the August 31, 2019 balance sheet is $1,012,303
Therefore, the correct option is B. $1,012,303
Answer:
$750,000 units
Explanation:
Calculation to determine the number of units the company would have to manufacture during the year
PRODUCTION BUDGET
Budgeted unit sales 700,000
Add desired ending finished goods inventory 73,000
Total $773,000)
(700,00+73,000
Less beginning finished goods inventory $23,000
Units to manufacture 750,000
Therefore number of units the company would have to manufacture during the year would be: $750,000
Answer: a. Brands enhance loyalty.
Explanation:
Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.
Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.
Answer:
The savings rate is higher in Aire than in Carttar and it is higher in cartar than in Bolivia.
Explanation:
To calculate savings rate:
[(Total income - consumption)/total income] x 100
Where total income = consumption + savings.
The savings rates are as follows
Aires: [(16000 -12,000)/16000] x 100
= 400/16
= 25%
Bovina: [(27000 - 24000)/27000] x 100
= 300/27
= 11.11%
Cartar: [(60000 - 50000)/60000] x 100
= 100/6
= 16.67%
It was also estimated that the setup cost pool would have $100,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme.
A. What is the overhead rate per product under Traditional costing?
What is the overhead rate under Absorption Costing for:
B. The machine pool overhead rate
C. The setup pool overhead rate
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Estimated costs and direct labor hours:
The total overhead= $300,000
Standard= 150,000 hours
Extreme= 50,000 hours
1) Under traditional costing, overhead gets allocated using a single plantwide manufacturing overhead rate.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 300,000/200,000= $1.5 per direct labor hour
Now, we can allocate overhead to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 1.5*150,000= $225,000
Extreme= 1.5*50,000= $75,000
2) Machine:
Overhead= $200,000
Hours= 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product.
Estimated manufacturing overhead rate= 200,000/5,000= $40 per hour
3)Set up:
Overhead= $100,000
Hours= 1,000 hours for the Standard and 1,500 hours for the Extreme.
Estimated manufacturing overhead rate= 100,000/2,500= $40
b. Using a deerskin as money may not be as widely accepted as using paper money.
c. Using a deerskin as money cannot fulfill the key functions of money: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
d. A and b only.
e. All of the above?
I guess the correct answers are A and B only
Using a deerskin as money may not be as widely accepted as using paper money.
Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.
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