Tamarisk, Inc. purchased a delivery truck for $29,200 on January 1, 2020. The truck has an expected salvage value of $2,200, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 12,800 in 2021.

Required:
Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.

Answers

Answer 1

Answer:

1. $3375

$3375

2. $4347

$3456

3 $7300

$5475

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

( $29,200  - $2,200,) / 8 =  $3375

depreciation expense each year is  $3375

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)  = 2/8 = 0.25

2020 = 0.25 x 29200 = 7300

2021 = 0.25x( 29200 - 7300)

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)


Related Questions

ompany X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likely reasoning X

Answers

Answer: The newly created firms is able to take advantage of economies of scale.

Explanation:

A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.

One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.

With the new​ technology, the opportunity cost of producing a chicken​ _____ because​ _____ soybeans must be forgone to produce a chicken.

Answers

The full question is:

A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced.

The farm adopts a new technology which allows it to use fewer resources to produce soybean.

With the new​ technology, the opportunity cost of producing a chicken​ _____ because​ _____ soybeans must be forgone to produce a chicken.

Answer:

increases​; more

Explanation:

Opportunity cost is the forgone alternative when a particular line of action is undertaken. For example in the given scenario more production of chicken will lead to loss of soyabean production and vice versa.

So when there is production of more chicken more opportunity cost is incurred because more of soyabean production is forgone in order to produce the chicken.

Economists consider opportunity cost seperately from the actual cost incurred in taking up a particular activity.

Bramble Corp. has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier is interested in producing the item for Bramble. If the item is produced outside, Bramble could use the released production facilities to make another item that would generate $200000 of net income. At what unit price would Bramble accept the outside supplier’s offer if Bramble wanted to increase net income by $140000?

Answers

Answer:

Bramble Corp.

Unit price at which Bramble would accept the outside supplier's offer

= $14.40

Explanation:

a) Data and Calculations;

Production capacity in units = 100,000

Variable costs =      $600,000

Fixed costs =             900,000

Total costs =         $1,500,000

Target net income    140,000

Total revenue =   $1,640,000

Alternative income (200,000)

Differential revenue $1,440,000 ($1,640,000 - $200,000)

Unit price at which Bramble would accept the outside supplier's offer =

$14.40 ($1,440,000/100,000)

a budget is used to do which of the following

Answers

Answer:

A budget is a financial plan used to estimate future income and expenses. The budgeting process may be carried out by individuals or by organizations. Budgets help an entity determine whether it can continue to operate with its projected income and expenses.

Explanation:

thank me later

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing Group of answer choices budgeted overhead costs by an expected standard activity index. actual overhead costs by an expected standard activity index. budgeted overhead costs by actual activity. actual overhead costs by actual activity

Answers

Answer: budgeted overhead costs by an expected standard activity index.

Explanation:

It should be noted that the predetermined overhead rate is typically calculated at the beginning of an accounting period. It is gotten when the estimated manufacturing overhead is divided by estimated activity base.

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing budgeted overhead costs by the expected standard activity index. Therefore, the correct option is A.

Wyatt keeps $25,000 in an interest-bearing time deposit with the Bigbux Bank. While earning a relatively attractive rate of interest, Wyatt had to agree to not withdraw any of the funds until the end of a three-year period. Wyatt's investment represents a(n)

Answers

Answer:

Certificate of deposit

Explanation:

A certificate of deposit is one of the most common and safest investment mechanisms. It consists in depositing a fixed amount of money at a bank or any other financial institution that offers the service, for a fixed amount of time, and in exchange for a fixed interest rate.

Certificates of deposit are one of the safest investment options, but for the same reason, they are one of the least profitable. It is well known that one of the central principles of finance is that the higher the risk, the higher the profitability, and the lower the risk, the lower the profitability.

Bramble Corp. expects to purchase $110000 of materials in July and $130000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be

Answers

Answer:

$125,000

Explanation:

August's cash disbursements for materials purchases wiill be:

= July month purchase paid amount + August month purchase paid amount

= ($110,000 * 25%) + ($130,000 * 75%)

= $27,500 + $97,500

= $125,000

Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects to make 2,000 comforters during the current year. With respect to the comforters, how would the supervisory salaries be classified

Answers

You would have to divide

What's the difference between a Monopoly and Oligopoly market?

Answers

Explanation:

The main difference between monopoly and oligopoly is in the number of firms under consideration.

In Monopoly,  the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.

While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.

The____has sole responsibility for determining if a product or service will be added to the Procurement List and for setting the Fair Market Price

Answers

Answer:

AbilityOne Commission

competitive markets are allocatively efficient. It is, however, difficult to find many examples of perfectly competition in the real world. Perfect competition is really a benchmark against which we compare other market structures in the real world. How much actual competition occurs in perfectly competitive markets

Answers

Answer:

Some level of actual competition still occurs in the perfectly competitive markets.

Explanation:

There is a perfect competition when have many sellers, it is easy for firms to enter and leave, products of the sellers are homogeneous, and sellers are price takers.

Perfect competition is a concept that exists only in theory and does not exist in reality. As a result, real-life examples of perfect competition are hard to come by, but there are a few that demonstrate the intensity of actual competition that exists in completely competitive markets.

Consider the instance of two competing supermarkets that both stock their aisles with goods from the same set of companies. Between the two supermarkets, there is little to separate products from one another, and their pricing is nearly identical.

The market for unbranded products, which contains cheaper replicas of well-known brands, is another example of ideal competition.

Product knockoffs are often priced in the same way and it may be difficult to differentiate them. If one of the companies that makes or supplies such a product leaves the industry, another one takes its place.

Despite that perfect competition is a concept that exists only in theory, the above examples therefore show that some level of actual competition still occurs in the perfectly competitive markets.

R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on John's salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Ince's salary. Compute the total cost to Ybarra of employing Ince for the year. Round your answer to the nearest cent.

Answers

Answer: $57488.50

Explanation:

The total cost to Ybarra of employing Ince for the year will be calculated thus:

Gross Salary = $53,000

Add: Social security tax = $53000 × 6.2% = $3286

Add: Medicare tax = $53000 × 1.45% = $768.50

Add: SUTA tax = $7000 × 5.4% = $378

Add: FUTA tax = $7000 × 0.8% = $56

Total cost to Ybarra of employing Ince will be $57488.50

Analyze and discuss when earnings management may be an ethical practice and when it is an unethical practice

Answers

Earning management follow ethical practices and unethical practice too that results in a genuine relationship among social responsibility. Similarly unethical have negative relationships and short-term goals. Unethical earning presents a misleading report.

To follow ethical practices right decisions, need to be followed that allow management to frame a better view. A practice that leads to a fair view of presentation is referred to as ethical practices that focus on long-term goals and not on personal gains. Where practices lead to misleading of activities that mislead users and stakeholders as well then such practices lead to unethical practice

Its the choice of the head department to keep up the policies that affect earning management followed by the ethical results.

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is

Answers

Answer:

The answer is "The corporation".

Explanation:

In terms of dollar sales, profits, or personnel, the main form of the corporate organization throughout the USA was its company. The company's main form of business organization is indeed the company, a legal entity constituted by the selling of share capital to the owners, who have become stakeholders and the shares elect a board member who manages the company.

Dawson Electronic Services had revenues of $120,000 and expenses of $70,000 for the year. Its assets at the beginning of the year were $420,000. At the end of the year assets were worth $470,000. Calculate its return on assets.

Answers

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

Suppose the demand function for a good is expressed as Q=100-4p. If the good currently sells for 10, what is the price elasticity equal to? a)-4 b)-1.5 c) -0.67 d) -2.5

Answers

Answer:

c)-0.67

Explanation:

Calculation to determine what the price elasticity equal to

Using this formula

Price Elasticity of Demand (PED)=dQ/dP*Q/P

Let plug in the formula

Price Elasticity of Demand (PED)=d(100-4p)/dp*p/100-4p

Price Elasticity of Demand (PED)=-4*p/100-4p

at p=$10

Price Elasticity of Demand (PED)=-4*$10/100-4($10)

Price Elasticity of Demand (PED)=-40/60

Price Elasticity of Demand (PED)=-2/3

Price Elasticity of Demand (PED)=-0.666

Price Elasticity of Demand (PED)=-0.67 Approximately

Therefore the price elasticity equal to -0.67

The Trade Gravity Model predicts that the volume of trade between two countries increases with the product of the GDP of the two countries and inversely with distance. This prediction is most consistent with: g

Answers

Answer:

The HOS model

Explanation:

Heckscher Ohlin model is the economic model which assumes that there are two countries with two goods and two factors. These countries can trade easily in the market without any barrier. This model explains the pattern of trade of the two countries who wishes to trade the goods they produce in their home country.

Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700
Journalize the closing entries.

Answers

Answer and Explanation:

The journal entries are shown below:

1  Fees Earned  $614,500

        To Income Summary A/c  $614,500

(Being the closing of revenue accounts is recorded)

2

Income Summary A/c  $486,900  

  To Rent Expenses A/c  $140,000  

  To Supplies Expense A/c  $18,200

   To Wages Expenses A/c  $320,000  

  To Miscellaneous Expenses A/c  $8,700

(Being the closing of expenses accounts is recorded)

3

Income Summary A/c  $127,600 ($614,500 - $486,900)  

  To Retained Earnings A/c  $127,600

(Being the closing of the income summary is recorded)

4

Retained Earnings A/c  $45,000

  To Dividends A/c  $45,000

[Being the closing of the Dividend account is recorded]

National income equals:_______.
a. wages + salaries + corporate profits + net income.
b. compensation of employees + proprietors' income + corporate profits + rental income + net interest.
c. compensation of employees + proprietors' income + indirect business taxes + rental income + net interest.
d. the monetary value of fringe benefits + tips + wages + profits + salaries.
e. none of the above

Answers

Answer:

C

Explanation:

C. compensation of employees + proprietors' income + indirect business taxes + rental income + net interest

Answer:

wages +salary+corporate profit +net income

Explanation:

this sumsup the national income of a country

Tim Armstrong was tapped to lead an integrated Yahoo!/AOL subsidiary of Verizon called Oath, and will most likely need to set a new strategic direction. Which of the four principal management functions should he focus on first?

Answers

Answer:

planning

Explanation:

The management process in any organization consists of four main and primary function that the managers of the organization needs to focus and perform. They are :

planningorganizingleadingcontrolling

Planning means to define the performance goals for the company and determining the plans and strategies in order to achieve that goal.

In the context, Tim Amstrong, who leads the integrated Yahoo!/AOL subsidiary is going to set a new strategic direction for the company. For this, he needs to focus on planning new organization goals and form new strategies to achieve them.

Thus he should focus on the planning of the four principal management functions.

The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.

a. True
b. False

Answers

Answer: True

Explanation:

Net present value (NPV) simply refers to the difference that is gotten between the present value of the cash inflows and that of the cash outflows over a particular period of time.

The net present value is used in investment planning and capital budgeting to determine the profitability of a project.

Therefore, the correct option is true.

Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.

Answers

Answer:

Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand

Explanation:

1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.

2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.

Lynx Corp. The data presented below for Lynx Corp. are for the year ended December 31, 2017: Sales (100% on credit) $1,000,000 Sales returns 30,000 Accounts receivable (December 31, 2017) 170,000 Allowance for doubtful accounts (credit balance) (before adjustment at December 31, 2017) 1,300 Estimated amount of uncollectible accounts based on aging analysis 14,000 See the data for Lynx Corp. If Lynx Corp. uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debts expense for 2017

Answers

Answer:

Allowance for Doubtful Accounts 69,000

Explanation:

If the company estimates its bad debt to be 2% of net credit sales:

sales                        2,500,000

return and allowance (50,000)

               net sales 2,450,000

Then, we calculate 2% of this amount:

2,450,000 x 0.02 = 49,000

As the uncollectible amounts are related to sales rather than account receivable we adjust for the full value giving an ending value of:

beginning 20,000 + adjustment 49,000 = 69,000

Economists Mark Blaug and Ruth Towse studied the market for economists in Britain and found that the quantity demanded was about 150 to 200 a year, and that the quantity supplied was about 300 a year. What likely to happen when there is a surplus of economists in Britain

Answers

Answer: See explanation

Explanation:

In this case, since the supply is more than the demand for Economists in the country, this will lead to a lower wage for the Economists that are employed. This is because there are surplus Economists which can be readily called if those employed aren't willing to collect the lower wages.

Also, the excess Economists can move to other countries where their services will be needed. In some cases, they may take jobs that are similar to their practice such as researchers, marketing roles etc.

Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future services. Suppose that before the adjusting entry, the balance in this account was $2,725. After the adjusting entry, the ending balance will be __________.

Answers

Answer:

the ending balance of the unearned revenue is $3,225

Explanation:

The computation of the ending balance is shown below:

= Amount received from the customer for performing the future service + balance in the account

= $500 + $2,725

= $3,225

Therefore the ending balance of the unearned revenue is $3,225

The above formula should be applied

the most effective use of the interim ___ is to establish cost standards and compare the actual amount with the budgeted amount for that time period

Answers

Answer:

income statement

inventory analysis (w)

Explanation:

The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed:
Month Demand, Units
January 15
February 18
March 22
April 23
May 27
June 26
Use a three-month moving average to make a forecast for July.

Answers

Answer:

25.3

Explanation:

A moving average is often used to pinpoint the increase or decrease of a certain statistic over a certain period of time since the increase in the demand for this specific drug has been increasing constantly for the past 6 months we will take the past 3 months, April, May, and June, so we will have to add up 23+27+26=76, now we just have to divide by the number of months= 76/3=25.3, so the moving average for the increase in the forecast for July will be 25.3

Which type of layout features departments or other functional groupings in which similar activities are performed

Answers

Answer:

Process-oriented.

Explanation:

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

Similarly, a type of layout in the manufacturing process that features departments or other functional groupings in which similar activities are performed is generally referred to as being process-oriented.

One of the main advantages of a process-oriented layout is that it mitigates or reduces difficulties associated with material flow variability for a product.

On December 31, the balance in the office supplies account is $1,300. A physical count shows $510 worth of supplies on hand. Required: Prepare the adjusting entry for supplies. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer:

Date                    Account title                                               Debit          Credit

December 1        Office Supplies Expense                           $790

                            Office Supplies                                                             $790

Explanation:

Office supplies is an asset but when it is used it should be debited to the office supplies expense account because it becomes an expense that should be catered for in the Income statement.

The office expense that is used for the year is:

= Book balance - Physical inventory

= 1,300 - 510

= $790

Supposed you have had 10 apples. You gave 4 apples to your friend for Christmas. What portion of the initial amount did you give away? (use similar formatting to the dollar amount, strictly decimals, no other signs or characters)

Answers

Answer:

The portion of the initial amount that was given away is:

= 0.40

Explanation:

a) Data and Calculations:

Number of apples available = 10

Number of those apples given to a friend for Christmas = 4

The portion given away = 4/10 = 0.4

This represents 40% of the whole.

b) The portion given away to the friend for Christmas is a proportion of the whole.  In this case, it represents just 40% of the 10 apples.  This means that only 60% or 0.60 of the original apples are still available or on hand because 40% had been given away.

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