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Nata [24]
2 years ago
10

Overland purchased $387,950 of fixed assets that are classified as three-year property for MACRS. The MACRS rates are .3333, .44

45, .1481, and .0741 for Years 1 to 4, respectively. What is the amount of the depreciation expense in Year 3 assuming no bonus depreciation is taken?
Business
1 answer:
Anton [14]2 years ago
5 0

Answer: $57,455.395

Explanation:

Given that,

Fixed assets purchased = $387,950

MACRS rates are as follows:

Year 1 = 0.3333

Year 2 = 0.4445

Year 3 = 0.1481

Year 4 = 0.0741

Depreciation Expense in Year 3:

= Initial Value or Purchase Price of equipment × MACRS rate for Year 3

= $387,950 × 0.1481

= $57,455.395

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Peterson Company estimates that overhead costs for the next year will be $6,520,000 for indirect labor and $550,000 for factory
Hunter-Best [27]

Answer:

b. $50.50 per machine hour.

Explanation:

Overhead costs are defined as the amount that is spent by a business that is not directly contributing to the product. For example overhead can be labour cost, rent, utilities, and insurance.

These do not contribute directly to the product. Direct cost such as are materials contribute directly to the product.

In the case the overhead costs are given as $6,520,000 for indirect labor and $550,000 for factory utilities.

Total overhead= 6,520,000 + 550,000

Total overhead= $7,070,000

Overhead Cost per hour= Total overhead ÷ Total machine hours

Overhead cost per hour= 7,070,000 ÷ 140,000= $50.50

4 0
2 years ago
Read 2 more answers
A real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers. The developer is
vagabundo [1.1K]

Answer: $100,000 less

Explanation:

Since we are informed from the question that the real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers, this means that current revenue will be:

= $350,000 × 20

= $7,000,000

By lowering the price, the revenue made will be:

= $300,000 × 23

= $6,900,000

The difference is

$7,000,000 - $6,900,000

= $100,000 less.

3 0
2 years ago
Beanstalk International is a rapidly growing company with well-established subsidiaries in several nations. The company wants to
miskamm [114]

Answer:

value chain analysis

Explanation:

Value chain analysis is a tool used within a firm to identify processes that add value in an organisation. It aims to reduce activities that constitute unnecessary cost and improve on processes that add value or give competitive advantage.

Beanstalk International needs a strategy that will help it differentiate primary and support activities in the company with a view of adding more value and adapting it's product to local preferences.

The value chain analysis is ideal for this to identify primary activities that drive company competitiveness.

5 0
2 years ago
Which of these transactions would produce $10,000 of revenue in December? (check all that apply) BOC Realty leases space to a te
Luba_88 [7]

Answer:

From the given question, the following transactions would produce $10,000 of revenue in December which are:

BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December = YES

BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January =YES

BOC Realty leases space to a tenant for December and January. the tenant pre-paid the $20,000 rent for the two months in November=YES and BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January =YES

Explanation:

Solution

Given that:

Now,

From the question stated it says that which of these transactions would produce $10,000 of revenue in December,

Thus,

BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December = YES

BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January =YES

BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January =YES

BOC Bank receives a check for $10,000 in December for November's interest amount =NO

BOC Realty leases space to a tenant for December and January. the tenant pre-paid the $20,000 rent for the two months in November=YES

6 0
2 years ago
You are senior in college. You sent your resume to a half-dozen companies hoping to get a job. A month ago you interviewed at AB
Sergio039 [100]

Answer:

If company ABC is a much better career choice then you should accept the offer.

Explanation:

The main consideration in this scenario should be career growth. As a new graduate one will want to start with a company that has good training programmes and possibility for career growth.

The main consideration at this stage should not be the salary that is offered. While this is a good incentive, earning a good salary without progressing in your career will be a bad choice in the long run.

8 0
2 years ago
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