Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,567,500. The estimated residual value was $82,500. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: Year Units 1 70,000 2 67,000 3 50,000 4 73,000 5 40,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.

Answers

Answer 1
Answer:

Final answer:

The question seeks the computed depreciation for a machine for 5 years under three methods: straight-line, units-of-production, and double-declining balance. The computations were conducted using the provided data.

Explanation:

To answer this question, we first need to understand the terms constant that would be used throughout the computation: Machine cost, residual value, useful life, and productive life. In this scenario, the calculation would be as follows:

  1. Straight-line method: Depreciation per year = (Cost - Residual value) / Useful life. So, ($1,567,500 - $82,500) / 5 = $297,000. Your depreciation expense is $297,000 per year for 5 years.
  2. Units-of-production method: Depreciation per unit = (Cost - Residual value) / Productive life. Our depreciation per unit is ($1,567,500 - $82,500) / 300,000 = $4.95. To get yearly depreciation, this needs to be multiplied by the number of units produced each year.
  3. Double-declining-balance method: Depreciation = 2 * Straight-line rate * Remaining book value. The first year’s depreciation would be 2/5 * (Machine cost - accumulated depreciation), and for the following years, subtract the previous year's depreciation from the machine cost.

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Answer 2
Answer:

Final answer:

Straight-line depreciation distributes the cost equally across the useful lifespan. The units-of-production method bases depreciation on the amount of production output. The double-declining balance method is an accelerated depreciation method that doubles the straight-line rate and uses the remaining book value for its calculations.

Explanation:

The cost of the machine is $1,567,500, and the residual value at the end of five years would be $82,500. Hence, the depreciable amount would be ($1,567,500 - $82,500) = $1,485,000.

For each of the desired methods, the depreciation schedules would be as follows:

  • Straight-line Method: This method would equally spread the depreciable amount over the useful life of the asset. Each year, the company would depreciate ($1,485,000/5) = $297,000.
  • Units-of-Production Method: This method bases the depreciation on the number of units produced. The depreciation rate per unit is calculated as ($1,485,000/300,000) = $4.95/unit. So, for each year, we need to multiply the rate by the units produced to obtain the annual depreciation.
  • Double-Declining-Balance Method: For this method, we first calculate the straight-line depreciation rate, which in this case is (1/5 = 20%). We double that rate to get the accelerated depreciation rate of 40%. Each year, we multiply this rate by the book value at the beginning of the year to get the annual depreciation. However, in the final year, this method ensures that the residual value is observed.

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What is the​ government's policy on collusion in the United​ States? Explain the rationale for this policy. In the United States A. the government makes collusion legal with antitrust laws because monopolies create no deadweight loss. B. the government makes collusion unnecessary with​ government-imposed barriers to entry because monopolies enhance economic efficiency. C. the government encourages collusion with subsidies because resulting profits can be used to develop new products. D. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets enhance economic efficiency. E. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.

Danita rescues dogs from her local animal shelter. When danita's income rises by 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For danita, the income elasticity of demand for dog biscuits isa. Negative, and dog biscuits are an inferior good.
b. Negative, and dog biscuits are a normal good.
c. Positive, and dog biscuits are an inferior good.
d. Positive, and dog biscuits are a normal good.

Answers

Answer: d. Positive, and dog biscuits are a normal good.

Explanation:

Normal goods are goods that are positively related with income and negatively related with prices. While, inferior goods are those goods which are negatively related with income. When demand for dog biscuits rises as a result of a rise in income, it shows that dog biscuits are a normal good for Danita. Therefore, we can say for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits are a normal good.

Final answer:

The income elasticity of demand for canine biscuits is positive in Danita's case, indicating that they are a normal good. This is because as Danita's income increased, so did her demand for dog biscuits.

Explanation:

The income elasticity of demand measures how the quantity demanded of a good changes in response to a change in income. As Danita's income increases by 7 percent and her demand for dog biscuits increases by 12 percent, the income elasticity of demand is positive. This is calculated by taking the percentage change in quantity demanded divided by the percentage change in income.

Based on the information given, for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits would be classified as a normal good, since the demand for them increases as income increases. Inferior goods, by contrast, have a negative income elasticity of demand: as income increases, demand for them falls.

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Geographically dispersed work groups no longer pose additional communication challenges given todays technology.a) true
b) false

Answers

The given statement is False Option(b) is correct.

What are work groups?

A Working group, or working party, is a group of specialists working together to accomplish indicated objectives. The groups are space explicit and center around conversation or action around a particular branch of knowledge.

A working group's presentation is comprised of the singular consequences of all its singular individuals. A group's presentation is comprised of both individual outcomes and aggregate outcomes. In enormous associations, working groups are predominant, and the attention is dependably on individual objectives, execution and accountabilities.

Working group individuals don't get a sense of ownership with results other than their own. Then again, groups require both individual and common responsibility. There is more data sharing, more group conversations and discussions to show up at a group choice The life expectancy of a working group can endure anyplace between a couple of months and quite a long while. Such groups tend to foster a semi extremely durable presence when the relegated task is achieved consequently the need to disband or gradually eliminate the working group when it has accomplished its objective.

Therefore Option(b) is correct.

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The answer is false

At the beginning of the year, a firm has current assets of $328 and current liabilities of $232. At the end of the year, the current assets are $493 and the current liabilities are $272. What is the change in net working capital?

Answers

Answer:

$125

Explanation:

Computation for the change in net working capital

Using this formula

Change in net working capital =( Ending Current asset- Ending Current liabilities) - (Beginning Current asset- Beginning Current liabilities)

Let plug in the formula

Change in net working capital =

($493 – $272) – ($328 – $232)

Change in net working capital = $221-$96

Change in net working capital =$125

Therefore the Change in net working capital will be $125

On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2017, Jacob Inc. sold the truck for $43,000. What amount of gain or loss should Jacob Inc. record on December 31, 2017? A. Gain, $22,000.
B. Gain, $5,000.
C. Loss, $3,000.
D. Loss, $18,000.

Answers

Answer:

The correct answer is B: gain $5000

Explanation:

Giving the following information:

On January 1, 2016, = commercial truck for $48,000.

straight-line depreciation method.

useful life of eight years.

residual value of $8,000.

On December 31, 2017, Jacob Inc. sold the truck for $43,000.

Depreciation expense per year= (Purchase value - residual value)/8

Depreciation expense per year= (48000-8000)/8=5000

Accumulated depreciation year 2= 5000*2= 10000

To calculate the gain or loss we need to use the following formula:

Gain/loss= price value - book value

Gain/loss= price value - (purchase price - accumulated depreciation)

Gain/loss= 43000 - (48000- 10000)= 5000 gain

On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note with $290000 accrued interest payable to Carla Vista, Inc. Carla Vista agrees to accept from Waterway equipment that has a fair value of $1440000, an original cost of $2400000, and accumulated depreciation of $1160000. Carla Vista also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 5%, with interest payable at the end of each year.Nolte should recognize a gain or loss on the transfer of the equipment of


a. $0.

b. $120,000 gain.

c. $180,000 gain.

d. $570,000 loss.


Nolte should recognize a gain on the partial settlement and restructure of the debt of


a. $0.

b. $45,000.

c. $165,000.

d. $225,000.

Answers

Answer:

(a) $210,000

(b) $351,500

Explanation:

(a) Given that,

Fair value of equipment = $1,440,000

Face Amount of the note = $1,230,000

Gain on sale:

= Fair value of equipment - Face Amount of the note

= $1,440,000 - $1,230,000

= $210,000

(b) Given that,

Accrued Interest Payable = $290,000

Interest rate = 5%

Gain on the partial settlement and restructure of the debt:

= Accrued Interest Payable + (Face amount of note × Interest rate)

= $290,000 + ($1,230,000 × 5%)

= $290,000 + $61,500

= $351,500

Describe the two types of brakes fitted on a motor vehicle

Answers

Answer:

brakes

Explanation:

because they brake

Answer: disc and drum brakes

Explanation: There are two kinds of brakes that stop your vehicle while driving: disc and drum brakes. almost all vehicles come with emergency brakes and anti-lock brakes.
Other Questions
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