Kent Enterprises purchased a truck for $60,000 on January 1 of its first year. The company uses the units-of-activity method and it estimates that the truck’s useful life will be 100,000 miles. The truck will have an estimated salvage value of $10,000. The company drives the truck 25,000 miles in the first year and drives it 20,000 miles in the second year. How much accumulated depreciation will be reported on the company’s balance sheet as of the end of the second year?
Answers
Answer:
Accumulated depreciation on car at the end of year 2 will be 22,500
Explanation:
The unit-of use Method recognize depreciation base on the use of a cost driver. This cost driver could be miles, number of units produced, or others.
(60,000-10.000)/100,000 = .5 rate per mile
acumulated depreciation at year 2
25,000 + 20,000= 45,000 total miles driven
45,000 * 0.5 = 22,500
Related Questions
A registered representative wishes to give a speech to a group of 35 potential retail clients at a restaurant. The speech is scripted and is a general discussion about investing in securities. Which statement is TRUE?
Information related to Mingen back Company for 2015 is summarized below: Instructions: A. What amount of bad debt expense will Mingen back Company report if it uses the direct write-off method of accounting for bad debts? B. Assume that Mingen back Company estimates its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Mingen back record if it has an Allowance for Doubtful Accounts credit balance of $4,000? C. Assume that Mingen back Company estimates its bad debt expense based on 6% of accounts receivable. What amount of bad debt expense will Mingen back record if it has an Allowance for Doubtful Accounts credit balance of $3,000? D. Assume the same facts as in (c), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingen back record? E. What is the weakness of the direct write-off method of reporting bad debt expense?
Suppose two paper plants dump industrial waste into a river. The EPA decides pollution concentration is too high at a receptor site down river from the paper plants. The two firms have identical marginal cost of pollution abatement, but firm 1 has a transfer coefficient of 0.8 and firm 2 has a transfer coefficient of 0.3. To reduce pollution concentration at a receptor site, who should reduce dumping more? Select one: a. Firm 1 b. Firm 2 c. Both should reduce the same d. No way to tell
If the CPI was 104 in 1967 and is 390 today, then $10 in 1967 purchased the same amount of goods and services as Group of answer choices $37.50 purchases today. $2.67 purchases today. $39.00 purchases today. $104.00 purchases today. None of the options is correct.
Answers
Answer:
Real Surplus is $200 billion
Explanation:
Inflation = 14%
Debt = $4 trillion = $4,000 billion
Nominal deficit = $360 billion
Real Deficit = Nominal deficit - (Inflation*Debt)
= $360 - 14% * 4,000
= $360 - 560
= -$200
Hence, the answer is Real Surplus of $200 billion
Answers
Answer:
The correct answer is letter "A": sales promotion.
Explanation:
Sales promotion is the marketing technique in which the benefits or special features of a product or service are provided to potential customers directly. In some cases, the sales promotion also is provided to the distribution channel so later the distribution channel reuses the information obtained to promote the same goods or services to the final customers.
Answers
Answer: $1760
Explanation:
If the company uses accrual basis accounting, the net income will be calculated as:
Cash received for lessons = $1,350
Add: Lessons provided on account = $1,060
Less: Rental bill for may = $(650)
Net income = $1350 + $1060 - $650
= $1760
The net income is $1760
Answers
Final answer:
Dunkin Donuts' actions of taste testing, research, and consumer feedback represent 'Market Research'. This process helps them collect and analyze data about consumer preferences, trends, and competition, thereby assisting them in making informed product decisions.
Explanation:
In the context of Dunkin Donuts' actions, this represents Market Research. Market Research is the process of gathering and analyzing data about the market, including information about customer preferences, trends, and competing products. For a company like Dunkin Donuts, this helps to ensure that they are meeting consumer demand, staying ahead of trends, and maintaining a competitive edge in the donut and coffee market. For example, they might survey customers about their preferred donut flavors, or test new product offerings in select locations to see how they perform. Based on the feedback, they make decisions on what to offer on a wider scale.
Learn more about Market Research here:
B. Anchoring: This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information.
C. Shifting: This is the bias involved in shifting perspectives too rapidly, thereby forgoing objectivity and sound reasoning.
D. Halo effect: This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related.
E. Overconfidence bias: This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.
Answers
Answer:
Option C would be the correct answer.
Explanation:
Throughout objective reasoning, cognitive bias seems to be a weakness that has been triggered by that of the human brain's propensity to interpret knowledge through a prism of individual perspective including interests. The types of cognitive bias but for the remaining change.
The types of cognitive bias are almost as follows:
- Overconfidence bias
- Confirmation bias
- Halo effect
- Anchoring bias
The latter considerations provided are not closely linked to the case provided. So, the answer above is the right one.
All of the given options are forms of cognitive bias except C. Shifting.
Cognitive biases are systematic patterns of deviation from objective judgment or rationality in decision-making. They can significantly impact the quality of our decisions. Among the listed options, all are recognized forms of cognitive bias except "Shifting."
Confirmation bias involves favoring information that confirms existing beliefs, Anchoring refers to relying too heavily on initial information, Halo effect influences overall judgments based on one aspect, and Overconfidence bias entails overestimating one's judgment's reliability.
"Shifting" is not a documented cognitive bias but may refer to rapidly changing perspectives, potentially leading to inconsistent or less objective reasoning. Understanding these biases is crucial for making more rational and informed decisions in various aspects of life.
So, option C is the answer.
For more questions on cognitive bias:
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Answers
Answer: Total supply of sugar = 30,000 + 400P
Explanation:
Given that,
Domestic demand for sugar: Qd = 40,000 − 200P
Domestic supply for sugar: QSD = 10,000 + 300P
Foreign supply: QSF = 20,000 + 100P
Total supply of sugar = Domestic supply + Foreign supply
= QSD + QSF
= 10,000 + 300P + 20,000 + 100P
= 30,000 + 400P
Therefore,
Total supply of sugar = 30,000 + 400P