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forsale [732]
1 year ago
8

Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its salvage value is estimated a

t $500. What is the depreciation for the second year of the asset’s life, assuming Slovac uses the double-declining balance method of depreciation? Multiple Choice
A. $1,406
B. $1,438
C. $1,875
D. $3,750
Business
1 answer:
saw5 [17]1 year ago
8 0

Answer:

A. 1,406

Explanation:

Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

The cost of asset =  $7,500

salvage value  = $500

estimated useful life = 8years

To calculate the depreciation value using Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

Depreciation rate = 1/useful life *100 = (1/8) * 100 = 12.5%

Therefore

2 x $7500 x 12.5% =  $1,875 - year 1

for the second year the cost of asset will be$ 7,500 - $1,875 =  $5625

2 x  $5625 x 12.5% = $1,406.25

Therefore the answer is $1,406

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Chairs started and Completed= 115,000 chairs

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One the key persistence of association behavior is to manage staffs efficiently. This means that the employee administration is a large part of OB. In doing that administrations need to employee competent personnel and make sure they are sufficiently motivated. While the motivation can be of diverse types (internal and external), the administration of the motivation is what makes staffs efficient and creative. Thus in order to achieve effectiveness and productivity on association level, I believe it is significant to manage worker motivation efficiently.

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