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LuckyWell [14K]
2 years ago
4

A company purchased a weaving machine for $273,400. The machine has a useful life of 8 years and a residual value of $15,000. It

is estimated that the machine could produce 760,000 bolts of woven fabric over its useful life. In the first year, 110,000 bolts were produced. In the second year, production increased to 114,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Business
1 answer:
Svetlanka [38]2 years ago
6 0

Answer:

Annual depreciation= $38,760

Explanation:

<u>To calculate the depreciation expense, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(273,400 - 15,000)/760,000]*114,000

Annual depreciation= $38,760

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Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis
Alex787 [66]

Answer:

Jaxon Furnishings Company Vs Logging Opportunities in Alaska

Comparison of the benefits of increased wood production to the costs of deforestation:

The company is using the __environmental sustainability___ approach to make this ethical decision.

Explanation:

According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."

An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done.  Short-termism selfishly considers the immediate gains from a transaction.  It lacks a futuristic appetite for the good of future generations.

3 0
2 years ago
Last year, your company had sales of $2.4 million. The firm's costs of goods sold amounted to 34% of sales. The firm also paid c
tangare [24]

Answer:

tax expense: 34%        103,020 dollars

Explanation:

Sales                         2,400,000

COGS 34% of sales<u>    (816,000)  </u>

Gross profit                1,584,000‬

other operating        (1,200,000)

depreciation                  (80,500)

interest expense

450,000 x 9%                (40,500)

gain on investment   <u>      40,000  </u>

Income before taxes    303,000

tax expense: 34%        103,020

The dividends paid are not an expense or revenue for the period. is the distribution of prior period gains.

5 0
2 years ago
Kenneth is admired as a manager because of his ability to work well with others to get things done. Which type of skill is Kenne
riadik2000 [5.3K]

Answer:

Is teamwork skills

Explanation:

Working well in a team mean:

Work with a group to achieve a goal or shared result effectively

Listen to team members.

Take into account the ideas of all the team

6 0
2 years ago
Read 2 more answers
You are currently deciding whether to invest in data loss prevention software. You have some reliable statistics that the softwa
Zinaida [17]

Answer:no

Explanation:

5 0
2 years ago
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon
pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.

4 0
2 years ago
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