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Westkost [7]
2 years ago
6

Barkley Company has a piece of equipment that it has been depreciating for 3 years. The equipment originally was estimated to ha

ve a useful life of 8 years and at the beginning of the current year, Barkley determines that the equipment's life has been extended to 10 years. When Barkley calculates depreciation for the current year, how many years of life should be used to calculate the depreciation expense
Business
1 answer:
Volgvan2 years ago
6 0

Answer:

Barkley Company

Change of Useful Life of Equipment:

Depreciation calculation should now be based on 7 years (10 - 3).

Explanation:

The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of generating cost-effective revenue for the entity.

As an estimate, it is based on judgement, and can be changed to reflect reality.  When a change in the useful life is considered necessary, the new useful life is determined and the number of years the asset had been used is subtracted from the new estimated useful life to determine the remaining useful life of the asset.  This remaining useful life is now used to calculate the depreciation expense.

Assuming the entity uses the straight-line method, the book value less salvage value, if any, is divided by the new useful life to determine the depreciation charge for each remaining year.

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Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.1 percent until you retire in 45 years.
grigory [225]

Answer:

If you wait one year, in 45 years you will have $16,624.04 more than investing today.

Explanation:

Giving the following information:

Option 1:

Initial investment= $11,500

Number of years= 45

Interest rate= 4.1%

Option 2:

Initial investment= $11,500

Number of years= 44

Interest rate= 4.7%

To calculate the future value for both options, we need to use the following formula:

FV= PV*(1+i)^n

<u>Option 1:</u>

FV= 11,500*(1.041^45)= $70,142.41

<u>Option 2:</u>

FV= 11,500*(1.047^44)

FV= $86,766.45

If you wait one year, in 45 years you will have $16,624.04 more than investing today.

7 0
2 years ago
The center of gravity method determines the best x and y coordinates for multiple faclities by finding a central location and th
babymother [125]

Answer:

The answer is True.

Explanation:

The center of gravity method is a concept under <em>Operations Management</em> as it relates to facilities distribution such as warehouses or fulfillment centers.

Center of Gravity Strategy/Method is defined as a concept that seeks to calculate geographic coordinates for a potential single new facility that will minimize costs. Under this approach the main factors considered are:

  • Cost of Shipping
  • Markets
  • Volume of goods shipped

Operations managers prefer to use this approach in siting the location of their facilities because:

  • It minimizes cost.
  • It is simple to compute
  • It takes in to consideration existing facilities

How to use the Center of Gravity Method

Step 1:

  • Place existing facility(ies) such warehouse, fulfillment center, and distribution center locations in a coordinate grid.
  • situate the grid on an ordinary map.
  • The distances between the facilities must be noted.

Step 2:

Then, using the equations below,

   Fx= ∑ dix Vi/ ∑ Vi

   Fy= ∑ diy Vi/ ∑ Vi

Proceed to calculate the X and Y coordinates using these equations where Fx is the X (horizontal axis) coordinate for the new facility, and

Fy is the Y (vertical axis) coordinate for the new facility, dix is the X coordinate of the current location, diy is the Y coordinate of the existing location, and Vi is the volume of goods moved to or from the <em>i</em>th location.

Step 3:

After you have obtained the X and Y coordinates place that location on the map.

This approach allows for point of departure – or, literally, a starting point of where (from the perspective of longitude and latitude) you options are for where to grow your fulfillment or logistics network.

Cheers!

 

8 0
1 year ago
Which two of these are essential for completing an initial mortgage loan application?
Vitek1552 [10]

*Your name.

*Your income.

*Your Social Security number (so the lender can check your credit)

*The address of the home you plan to purchase or refinance.

*An estimate of the home's value.

*The loan amount you want to borrow.

4 0
1 year ago
Harvey County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 25 percent per year for the
densk [106]

Answer:

The current stock price should be at $60.15.

Explanation:

We have the dividend paid next year = 1.05 x 1.25 = $1.3125.

So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:

[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.

The present value of the dividend stream from year 8 to infinity ( growing perpetuity):

[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.

The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.

Thus, the answer is $60.15 per share.  

3 0
2 years ago
Edgar works on a team with four other accounting professionals within a company's accounting department. Edgar doesn't particula
Temka [501]

Answer: knowledge based

Explanation:

The foundation of trust that Edgar has in this team is referred to as knowledge based.

Since the accounting professionals possess top- notch accounting skills and have never let him down while working on a project together, this is referred to as knowledge based.

Therefore, the correct option is C.

5 0
1 year ago
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