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forsale [732]
2 years 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]2 years 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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The bank statement reported an ending balance of $43,860 after deducting $660 in service charges and an addition of $13,500 for
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Answer:

Question 1

B. $41,910

Question 2

C. Debit to interest receivable for $90

Explanation:

Question 1

Calculation for the adjusted cash balance

Using this formula

Adjusted cash balance = Cash balance per books +Deposits in transit - Outstanding checks

Let plug in the formula

Adjusted cash balance= $43,860+$16,800-$18,750

Adjusted cash balance= $41,910

Therefore Adjusted cash balance is $41,910

Question 2

Based on the information given The Appropriate journal entry to record accrued interest at the end of its fiscal year on December 31, 2019 will include a:

Debit to interest receivable for $90 which is calculated as:

Interest receivable=[(6%*$18,000*90days/360)/3]

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2 years ago
At the beginning of Year 2 , Benson Company had beginning inventory of 150 units that cost $200 each. During Year 2, Benson made
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Answer:

$63,600

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Th weighted average method is one that ensures that all the various prices at which inventory is bought is considered to determining the price at which inventory is issued.

Amount of Inventory at

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Total quantity (before sales) = 150 + 500 + 350 = 1000 units

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The 700 units sold will be value at $212 per unit.

Hence total cost of goods sold = $212 × 700 = $148,400

Closing inventory amount = $212,000 - $148,400

= $63,600

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Lupe is a student who wants to open a bank account. Which type of bank is most likely the best option for her needs?
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Assume an analyst has been hired to estimate the price elasticity of demand for hamburger (which sells for about $2.30 per pound
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Answer:

The correct answer is B

Explanation:

Price elasticity of the demand evaluates the demand responsiveness after the change or variation in the product own price.

The formula for computing the coefficient of price elasticity, is the factors which affect the elasticity and also elasticity is vital for business when deciding the prices.

So, Filet mignon(F) sells for $20 per pound when compared to that of hamburger (H) which sells the product for $2.30 per pound. F have the higher price as compare to the H, therefore, the coefficient of the price elasticity of demand in absolute value will be high or larger for F than that of H.

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