A machine costing $214,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123,600 in 2nd year, 120,000 in 3rd year, 136,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required:
Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Straight-Line Depreciation Year Depreciation Expense 1
2 3 4 Total
Answers
Answer:
Explanation:
year depreciation cost rate annual dep. expense accumulated dep. book
1 196800 25% 49200 49200 165600
2 196800 25% 49200 98400 116400
3 196800 25% 49200 147600 67200
4 196800 25% 49200 196800 17200
depreciation calculate
214800 minus 18000 equal to 196800
To compute depreciation for each year and total depreciation of all years combined under each depreciation method, we need to first calculate the depreciable cost of the machine.
Depreciable cost = Cost of machine - Salvage value
Depreciable cost = $214,800 - $18,000
Depreciable cost = $196,800
1. Straight-Line Depreciation:
Annual depreciation = (Depreciable cost - Salvage value) / Useful life
Annual depreciation = ($196,800 - $18,000) / 4
Annual depreciation = $44,700
Year 1: $44,700 depreciation expense
Year 2: $44,700 depreciation expense
Year 3: $44,700 depreciation expense
Year 4: $44,700 depreciation expense
Total depreciation = $44,700 x 4
Total depreciation = $178,800
2. Units of Production Depreciation:
Per unit depreciation = (Depreciable cost - Salvage value) / Estimated total units of production
Per unit depreciation = ($196,800 - $18,000) / 492,000
Per unit depreciation = $0.36
Year 1: 121,900 x $0.36 = $43,884
Year 2: 123,600 x $0.36 = $44,496
Year 3: 120,000 x $0.36 = $43,200
Year 4: 136,500 x $0.36 = $49,140
Total depreciation = $43,884 + $44,496 + $43,200 + $49,140
Total depreciation = $180,720
3. Double-Declining Balance Depreciation:
Depreciation rate = (1 / Useful life) x 2
Depreciation rate = (1 / 4) x 2
Depreciation rate = 0.5 or 50%
Year 1: $214,800 x 50% = $107,400
Year 2: ($214,800 - $107,400) x 50% = $53,700
Year 3: ($107,400 - $53,700) x 50% = $26,850
Year 4: ($53,700 - $26,850) x 50% = $13,425 (limited to $18,000 salvage value)
Total depreciation = $107,400 + $53,700 + $26,850 + $13,425
Total depreciation = $201,375
Since the total number of units produced by the end of year 4 exceeds the original estimate, the Units of Production Depreciation method will result in the highest depreciation expense among the three methods.
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Related Questions
Sales Transactions
Journalize the following merchandise transactions, using the net method under a perpetual inventory system.
a. Sold merchandise on account, $19,150 with terms 2/10, n/30. The cost of the goods sold was $11,490. If an amount box does not require an entry, leave it blank.
Accounts Receivable Sales Cost of Goods Sold Inventory
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(a) When the perpetual inventory system is used, two entries are recorded each time a sale is made. In the first entry, accounts receivable and the sale are recorded, less the discount. A second entry records the cost of the merchandise sold and the reduction of inventory on hand.
b. Received payment less the discount. If an amount box does not require an entry, leave it blank.
Cash Accounts Receivable
Answers
(a) Journal entry for the sale of merchandise on account, $19,150 with terms 2/10, n/30, and a cost of goods sold of $11,490:
Accounts Receivable $18,757.00 ($19,150 - $393 discount)
Sales $18,757.00 ($19,150 - $393 discount)
Cost of Goods Sold $11,490.00
Inventory $11,490.00
(b) Journal entry for the receipt of payment less the discount:
Cash $18,367.06 ($18,757 - $390 discount)
Accounts Receivable $18,757.00
In the first transaction, the merchandise was sold on account for $19,150 with terms of 2/10, n/30. This means that the customer can receive a 2% discount if they pay within 10 days, otherwise, the full amount is due within 30 days. The cost of the goods sold was $11,490.
To record this transaction, we need to make two entries. The first entry debits accounts receivable and credits sales for the amount of the sale less the discount ($19,150 - $393 = $18,757). We then debit the cost of goods sold and credit inventory for the cost of the merchandise sold ($11,490).
In the second transaction, the customer pays their account within the discount period, so they receive a 2% discount. The payment received is $18,757 - $390 = $18,367.06.
To record this transaction, we need to make one entry. We debit cash for the amount received less the discount ($18,757 - $390 = $18,367.06) and credit accounts receivable for the full amount of the payment ($18,757).
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Suppose an investor holds a bond with Maturity of 4 years, a coupon rate of 7% and a face value of $1,000. Calculate the Cash Flows of the investor
Answers
The investor will receive $70 as a coupon payment each year for 4 years and an additional $1,000 at the end of the 4-year period when the bond matures.
The cash flows of the investor can be calculated by considering the coupon payments and the face value payment at maturity.
1. Coupon Payments:
The bond has a coupon rate of 7% and a face value of $1,000. Since the coupon rate is expressed as a percentage of the face value, the investor will receive a coupon payment of 7% of $1,000 every year for 4 years.
To calculate the coupon payment, we multiply the coupon rate (7%) by the face value ($1,000). This gives us an annual coupon payment of $70.
2. Face Value Payment at Maturity:
At the end of the 4-year period, the bond will mature, and the investor will receive the face value of $1,000.
Therefore, the cash flows of the investor can be summarized as follows:
Year 1: $70 (coupon payment)
Year 2: $70 (coupon payment)
Year 3: $70 (coupon payment)
Year 4: $70 (coupon payment) + $1,000 (face value payment at maturity)
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It is a strong drive to achieve goals and objectives through focus and proactive follow-through.
a.
Consistency
b.
Coordination
c.
Competence
d.
Commitment
Answers
Answer:
C
Explanation:
Competence gives you the ability or skill to do something
1. Juan is enrolled in marketing education courses and is 17 years old. Juan has been hired by an electrical contractor. Juan is hoping to use this job as a cooperative work site placement. You are told that Juan’s job is to pull electrical components out of inventory and drive them to the job site.
Answers
Answer:
What is the wholesaling industry?
Explanation:
Juan is enrolled in marketing education courses and is 17 years old. Juan has been hired by an electrical contractor. Juan is hoping to use this job as a cooperative work site placement. You are told that Juan’s job is to pull electrical components out of inventory and drive them to the job site.
Your answer
Is debt finance the same as debt capital?
Answers
Answer:
no they are not the same hope this helps
A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplie s that should be recorded on May 31?
Answers
Answer:
Debit Supplies Expenses $850 and Credit supplies $850
Explanation:
Kimdly check attached picture for explanation
When the first place team visits another team's stadium for a game, prices for seats to that game rise. This is called
evenue pricing
argin pricing
eld management pricing
namic pricing
Answers
When the first-place team visits another team's stadium for a game, prices for seats to that game rise. This is called yield management pricing.
What do you mean by a price?Price refers to the money that needs to be paid for acquiring any product or service.
When different seats are priced differently, it is known as yield management pricing. In simple words, it is a variable pricing strategy that is based on understanding, anticipating, and influencing consumer behavior for profit maximization.
So, when the first place team visits another team's stadium, prices for seats to that game rise is known as yield management pricing.
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What is a public good?
A A public good is a product or service that one consumer can prevent another consumer from using, and is not accessible without
payment
B A public good is a product or service that one consumer cannot present another consumer from using, and is accessible without
payment
C A public good is a product or service that one consumer cannot prevent another consumer from using, and is not accessible without
payment
D A public good is a product or service that one consumer can prevent another consumer from using, and is accessible without payment.
Answers
I believe your answer is B
A public good is a product or service that one consumer cannot present another consumer from using, and is accessible without payment
What do you think it means that your money is FDIC/NCUA insured up to $250,000
Answers
I believed that my deposit money is insured up to $250,000 by FDIC/NCUA because it is a legal banking requirement.
What is the banking requirement?The insurance of deposit is necessary to prevent to banks from huge liability incase they lose their customer's deposit because of theft, fraud etc
In conclusion, I believed that my deposit money is insured up to $250,000 by FDIC/NCUA because it is a legal banking requirement.
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features of small office
Answers
Answer:
just made it yourself
Explanation:
hehehe
To have standing to sue, a party must have been harmed or have been threatened with harm by the action about which he or she complains. 1. false 2. true
Answers
True, to have standing to sue a party must have been harmed or have been threatened with harm by the action about which he or she complains.
The requirement that the plaintiff has a bona fide interest in the case depends on whether the plaintiff has suffered or is likely to suffer direct and material harm from the actions of the parties or the government. class action suite.
Standing to Sue is the right to sue. A plaintiff must present evidence sufficient to convince a jury that the defendant's conduct directly caused the plaintiff's injury and damages.
A case limits participation in litigation and asks whether a person filing or defending a lawsuit has good reason to "run" and defend himself in court. To obtain status, a party must demonstrate an "actual infringement" of its own legal interests.
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Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
per month for 6 months and the remaining balance in month 7. How much will Linda pay back in 6 months, and
what will the amount of her final payment be?
HELP PLEASE
Answers
Answer:
In six months, Linda will pay : $480
Final payments :$819
Explanation:
The monthly payments are $80 for six months.
For six months, Linda will have paid $80 times six months
=$80 x 6
=$480
The amount for her final payments will be the total of the two items minus the installment payments
=$1,299 - $480
=$819
Make an argument that going to college could lead to an N.B.A career.
Answers
Answer:
hey dadddy ddydydyydydydydydyydyd
Explanation:
How does banking affect the money supply?
Answers
Explanation:
when a loan is made ,it increases the money supply
URGENT HELP PLEASE
What are some of the reasons that excel is important in a finance career? Why is it important to learn tricks like shortcuts in excel? How is a program like excel better than doing math by hand or with a calculator?
Answers
Answer:
Excel is an important tool in finance as it allows for efficient organization, calculation, and analysis of large amounts of data. The ability to perform complex calculations and present data in a clear and organized manner can save time and increase accuracy compared to doing math by hand or with a calculator. Additionally, shortcuts in Excel allow users to work faster and more efficiently, enabling them to handle larger amounts of data and perform more advanced analysis. Overall, proficiency in Excel is a valuable skill in finance as it enables professionals to perform their job duties more effectively and efficiently.
Hope this helps.
Picture your ideal retirement and describe.
Answers
Answer:
Lots of money
Explanation:
I would want to save up in order to play sports and video games all day. I would also like to travel a lot
Answer:
Explanation:
I am retired. I have a pension that takes care of my needs for now. It won't once the economies realize what they've done. Practically no one will be able to retire.
So I'm lucky in that I can pretty much do what I want within the jurisdiction where I live. Right now the virus is leading us on a merry chase and our borders are closed. I'm told it's a good thing because the medical care is being overwhelmed. I certainly didn't plan that.
I have the best care that anyone could wish for. I have Cancer but my two specialists take of me with a medication that only 10% of the population respond to, so I'm lucky. That's something I didn't plan on either but I should have. Both my parents succumbed to Cancer. And you have to take into account the bad with the good.
I love to travel and look forward to the borders opening up. Nothing is going to hold me up. You must always figure on what interests you have to become what you like to do. Everyone where I am does have an interest, but I don't think watching television should really count. I do like answer questions on Brainly. I've learned how to write answers that I'm satisfied with, even if students are not.
What are some of the factors that would influence your insurance costs foolproof?
Answers
Factors that would influence your insurance costs are:
Age or driving history. Younger and less experienced drivers are more likely to get in car accidents, hence their insurance costs are often higher.Your car's make and model.history of accidents and driving.Geographic location.Why is insurance important? What is insurance?An effective way to guard against financial loss is insurance. It is a method of risk management that is primarily employed to protect against the risk of a potential loss. An organization that offers insurance is referred to as an underwriter, insurer, insurance business, or insurance carrier.Plans for insurance will assist you in paying for future medical care, hospitalization, contracting any illnesses, and treatment. Insurance policies can help to offset the family's financial loss caused by the untimely demise of the family's primary source of income.To learn more about the insurance, refer to the following link:
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You own a construction business and need to hire workers to build a house and add one worker at a time to the added contribution of each worker. At what point will you stop hiring workers ? Relate this process to the three stages of production function as you explain your answer .
Answers
In the long run, all inputs are variable, so the marginal product of labor will continue to decline as more workers are added. Eventually, the marginal cost of hiring additional workers will exceed the marginal benefit, and it will no longer be profitable to hire more workers.
In the context of a construction business, you would likely stop hiring workers when the marginal product of labor begins to decline, or when the marginal cost of hiring additional workers exceeds the marginal benefit. This decision would be based on your analysis of the costs and benefits of hiring more workers, and your assessment of the efficiency and productivity of your construction process
under the investment advisers act of 1940, which of the following statements is false about the acceptance of prepaid advisory fees by an investment adviser?
Answers
Under the investment advisers act of 1940, an investment adviser may accept a prepaid advisory fee if the fee is refundable or credited pro-rata if services are not provided. This is a true statement. There are different fees that investment advisers charge for their services.
It can be a percentage of the total assets under management (AUM) or a flat fee. In some cases, the adviser may accept a prepaid advisory fee.
The investment advisers act of 1940 allows an adviser to accept such a fee if it is refundable or credited pro-rata if services are not provided.
This is to ensure that the investor does not lose their money if they cancel the services before they receive them or if the adviser is unable to deliver the services promised.
One false statement about the acceptance of prepaid advisory fees by an investment adviser is that the adviser is allowed to keep the entire fee even if services are not provided.
This would be unethical and against the rules set out by the investment advisers act of 1940.
Therefore, it is important for investors to read and understand the terms and conditions of the agreement before paying a prepaid advisory fee. A reputable investment adviser will be transparent about their fees and how they work.
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Write a short paragraph describing the benefits of working as a team to complete a project.
Answers
Answer:
A group of people who have to achieve common goal is known as team. If we work in team it increases our creativity and learning, it also builds trust. It boost the particular person when we work in team. We can also learn faster. There are more chances of getting success in particular area if we work in team. As there is saying, " together we can achieve more what each of us can achieve." It also enhances productivity and capability.
What is the craziest drink you've gotten at starbucks or dunkin? Tell me the size, how many pumps of syrups (if you get any) and how many scoops of inclusions (if you get any). Tell me everything and be very specific!
Answers
Peppermint Frappé ( Seasonal ) with 17 pumps of peppermint !!!
Full pass-through means that a 10% rise in the overseas price of an imported good leads to:
Answers
Full pass-through means that a 10% rise in the overseas price of an imported good leads to a 10% increase in the domestic price of that good.
Full pass-through refers to the extent to which changes in the price of imported goods are reflected in the domestic price of those goods. In the case of a 10% rise in the overseas price of an imported good, full pass-through implies that the domestic price of the same good will also increase by 10%.
When full pass-through occurs, the increase in the cost of importing the good is fully passed on to the consumers in the domestic market. This means that the price of the imported good directly influences the price at which it is sold to consumers without any adjustment or absorption of the price increase by the domestic entities involved in the supply chain.
It's important to note that full pass-through is not always the case in practice. Various factors, such as market competition, supply and demand dynamics, and exchange rate fluctuations, can affect the degree of pass-through. In some cases, there may be incomplete or partial pass-through, where the domestic price increase is lower than the percentage increase in the overseas price.
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Which view is used to enter data into an Access table by default?
Datasheet
Grid
Design
Layout
Answers
The answer is Datasheet.
What is the datasheet view?A web datasheet view in an Access app displays online data arranged in rows and columns in a web browser. It can allow data edits or not, as you prefer. When you create a web datasheet view in Access, it opens in Design View, where you can set the record source.
Which view is used to display the data of the table?In relational databases, data is structured using various database objects like tables, stored procedures, views, clusters, etc. This article aims to walk you through 'SQL VIEW' – one of the widely-used database objects in SQL Server.
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a firm that can pay its suppliers (accounts payables) on time without impeding its ability to take advantage of economically feasible investment opportunities is best characterized as:
Answers
A firm that can pay its suppliers (accounts payables) on time without impeding its ability to take advantage of economically feasible investment opportunities is best characterized as financially healthy or well-managed.
Being able to meet its financial obligations to suppliers indicates that the firm has sufficient liquidity and cash flow management to handle its short-term liabilities. It demonstrates financial stability and responsibility in managing its working capital.
At the same time, the firm's ability to pursue economically feasible investment opportunities without jeopardizing its payment obligations suggests that it has access to capital or internal resources to finance its growth and expansion. This ability to balance short-term obligations with long-term investment decisions reflects prudent financial management and a strategic approach to capital allocation.
Overall, a firm that can meet its accounts payable obligations while still capitalizing on profitable investment opportunities showcases a healthy financial position and effective management practices. It signifies the ability to maintain supplier relationships, seize growth prospects, and sustain long-term business success.
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Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort. The agency will terminatea. after the condos have been sold.b. if the prices of the condos must be reduced to sell them.c. once Bayou Development obtains insurance to cover the property.d. when Bayou Development pays Coastal Brokerage its first commission.
Answers
The agency will terminate a. after the condos have been sold.
When Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building, the agency relationship will typically end once the condos have been sold. The primary objective of Coastal Brokerage Associates is to facilitate the sale of the condos on behalf of Bayou Development Corporation. Once all the condos are sold, their role is fulfilled, and the agency relationship comes to an end.
The termination of the agency relationship is based on the completion of the agreed-upon task, which in this case is selling the condominiums. Other factors mentioned in options b, c, and d, such as price reductions, obtaining insurance, or receiving the first commission, may be relevant to the process but do not directly dictate the termination of the agency.
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Which of the following is true regarding states that have adopted the reasonably foreseeable users test for accountant liability to
third parties?
Answers
The reasonably foreseeable users test holds an accountant liable to any third-party who was or should have been foreseen as a possible user of the accountant's work product and did, in fact, use and rely upon that work product for a proper business purpose.
What is accountant?By gathering, monitoring, and making necessary corrections to the company's finances, an accountant assists organisations in making important financial decisions. Financial audits, bank statement reconciliation, and ensuring that financial records are accurate all year long are under their purview.
Account analysis, auditing, and financial statement analysis are examples of professional accounting duties carried out by accountants. Accountants can work for an accounting firm, a sizable business with an internal accounting division, or they can open their own practise.
These four areas of accounting are forensic, corporate, public, and governmental. For any accounting employment, an undergraduate degree is typically a requirement, however prior master's work—especially in the accounting field—is frequently greatly encouraged.
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Both individuals and organizations can be consumers.
O True
O False
Answers
Answer:
True
Explanation:
She makes $569.58 a month
Answers
Answer:
Needs - $284.79, Wants - $170.87, Savings - $113.92
Explanation:
Just divide $569.58 in half, so $284.79 for needs.
Then, $569.58 * 0.30 = $170.87 for wants.
Lastly, $569.58 * 0.20 = $113.92 for savings.
To check your answer, add up all the amounts:
$284.79 + $170.87 + $113.92 = $569.58
To build new brands and to rejuvenate stagnant brands, companies will want to stimulate trial purchases of the product. The best communication tool to accomplish this objective would be
Group of answer choices
advertising
consumer promotions
trade promotions
personal selling
Answers
consumer promotions are the best communication tool to stimulate trial purchases, as they directly target end-users and provide incentives for them to try the product. This, in turn, can lead to increased brand awareness and growth for the company.
To build new brands and rejuvenate stagnant brands, companies would want to stimulate trial purchases of the product. The best communication tool to accomplish this objective would be consumer promotions.
Here's a step-by-step explanation:
1. Consumer promotions are targeted directly at the end-users of the product, making them the most effective way to stimulate trial purchases.
2. These promotions can include incentives such as coupons, samples, rebates, or loyalty programs that encourage customers to try the product.
3. By offering these incentives, companies can create excitement around the brand and encourage potential customers to give the product a chance.
4. Once consumers have tried the product, positive experiences can lead to word-of-mouth advertising, further increasing the product's popularity.
5. As more people try and enjoy the product, the brand's reputation improves, leading to increased sales and growth for the company.
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outline one impact that use if technology, such as contactless payment systems, could have on a restaurant
Answers
Answer: it will increase spending in the restaurant by customers.
Explanation: Contact less payment systems involve the use of credit cards, debit cards, smart cards and smart phone and other devices which uses radio frequency identification (RFID) or near by field communication to pay for goods or services.
Contactless payment systems have had impact on spending since it inspection, it has increase spending because of the ease in payment.