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Lapatulllka [165]
2 years ago
11

Use the following information to answer the next two questions. Downey Company bought a delivery truck for $62,000 on January 1,

2015. They installed a rear hydraulic lift for $8,000 and paid sales tax of $3,000. In addition, Downey paid $2,400 for a one-year insurance policy. They estimate the useful life of the truck to be 10 years and its residual value to be $8,000. If Downey uses the straight-line method of depreciation, what is the depreciation expense for 2016 and book value at the end of 2016
Business
1 answer:
natita [175]2 years ago
7 0

Answer and Explanation:

The computation of the depreciation expense and book value at the end of 2016 is shown below:

But before that first determine the cost of the asset which is

Cost of the asset is

= Purchase price + rear hydraulic  lift + sales tax

= $62,000 + $8,000 + $3,000

= $73,000

Now the depreciation expense is

= ($73,000 - $8,000) ÷ (10 years)

= $6,500

ANd, the book value is

= $73,000 - $6,500 × 2

= $60,000

You might be interested in
The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eatin
deff fn [24]

Full Question

The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eating breakfast is 0.238. suppose that lance, a nutritionist, surveys the dietary habits of a random sample of size n=500 of young adults ages 20–39 in the united states.

Apply the central limit theorem for the binomial distribution to find the probability that the number of individuals, ?, in Lance's sample who regularly skip breakfast is greater than 122. You may find table of critical values helpful.

Express the result as a decimal precise to three places.

Answer:

The probability using the Normal Approximation that out of lance’s sample more than 122 people is 0.356

Explanation:

Given

n = Sample Size = 500

p = Probability = 0.238

Using the normal approximation to binomial distribution,

Let X = Event such that a person skips breakfast

If X ~ Binomial (n,p)

Using normal approximation

X ~ Normal (np,npq)

Where n = 500 and p = 0.238

So, X ~ Binomial (n,p) becomes

X ~ Binomial (500 , 0.238)

Using Normal Approximatiom

X ~ (119, 90.678)

The critical table is then constructed as follows;

Binomial --------- Normal

P(X = a) --------- P(a - 0.5 < X < a + 0.5)

P(X ≥ a) --------- P(X > a - 0.5)

P(X > a) --------- P(X > a + 0.5)

P(X ≤ a) --------- P(X < a + 0.5)

P(X < a) --------- P(X < a - 0.5)

Calculating the probability using the Normal Approximation that out of lance’s sample more than 122 people skips

This can be written as P(X > 122)

Looking at the critical table above.

P(X>a) ----- P(X>a + 0.5)

So,

P(X > 122) ---- P(X > 122 + 0.5)

P(X > 122) ---- P(X > 122.5)

Calculating Z score using

z = (x - u)/√σ²

X = 122.5

From X ~ (119, 90.678)

u =mean = 119

σ = standard deviation = √90.678

So,

Z = (122.5 - 119)/√90.678

z = 0.367550550865750

Z = 0.37 ---- Approximated

P(X > 122.5) = P(Z > 0.37)

P(X > 122.5) = 1 - P(Z<0.37) --- using z table

P(X > 122.5) = 1 - 0.6443

P(X > 122.5) = 0.3557

P(X > 122.5) = 0.356 -- Approximated

6 0
2 years ago
At the end of its first year of operations, shapiro's consulting services reported net income of $27,000. they also had account
Otrada [13]
Answer: $11,200

Explanation:

Using the accounting equation:

(Total Assets) = (Total Liabilities) + (Total Capital)

So,

(Total Liabilities) = (Total Assets) - (Total Capital)    (1)

Based on equation (1), in order to compute for the total liability, we need to compute the total assets and total capital.

At the end of the first year, the following are the assets Shapiro's consulting services (together with the amount):

Cash:                              $16,000
Office Supplies:                $3,200
Equipment:                     $24,000
Accounts Receivable:       $8,000
TOTAL ASSETS            $51,200

Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.

Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year. 

Moreover, the withdrawal of money by the owner also decreases the capital.  

Thus, the total capital at the end of first year is calculated as follows:

Capital (start of the year):            $15,000
Net Income (end of year):           $27,000   
Withdrawal Amount:                    ($2,000)
TOTAL CAPITAL:                       $40,000

Note: ($2,000) means -$2,000. This notation is used in accounting.

Hence using equation (1), the total liabilities at the end of first year is given by

(Total Liabilities) = (Total Assets) - (Total Capital)
                           = $51,200 - $40,000
Total Liabilities = $11,200

7 0
1 year ago
Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods invent
just olya [345]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and the cost of goods sold was $50,000.

We need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

50,000= 10,000 + cost of goods manufactured - 20,000

50,000 + 20,000 - 10,000= cost of goods manufactured

60,000= cost of goods manufactured

5 0
1 year ago
You were hired as a consultant to restructure operating capital. The recommended goal is for the firm to have a capital structur
Komok [63]

Answer:

The WACC is 8.66%

Explanation:

The WACC or weighted average cost of capital is the cost to firm of its capital structure which can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Furthermore, we take the after tax cost of debt for WACC calculation and that is why we multiply the cost of debt by (1-tax rate).

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

WACC = 0.33  *  0.065  *  (1-0.28)  +  0.08 * 0.06  +  0.59 * 0.1125

WACC = 0.086619 or 8.86619% rounded off to 8.66%

3 0
2 years ago
An MNC in a developing country is operating amidst severe space​ constraints, and the infrastructural conditions in the city are
N76 [4]

Answer: Option C

                     

Explanation: In simple words, telecommuting refers to the arrangement in which an employee of the organisation performer his or her job activities right from his or her home without going to a specified work place.

This is a modern times business technique which is used by organisations to save their costs like rent and travelling allowance to employees  that they have to bear. Such arrangement is generally made for the jobs that requires no client dealings and have specified targets set.

Thus, from the above we can conclude that the company should go for telecommuting as it will save the man hours.

6 0
1 year ago
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