Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,600. The machine's useful life is estimated at 20 years, or 393,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,300 units of product. Exercise 8-5 Units-of-production depreciation LO P1 Determine the machine’s second-year depreciation using the units-of-production method.
Answers
Answer:
$6,600
Explanation:
Depreciation per units-of-production method:
Depreciation per unit = (cost computerized manufacturing machine - salvage value) / machine's useful units of product.
Depreciation per unit = ($84,600 - $6,000) / 393,000 units
Depreciation per unit = $78,600 / 393,000 units
Depreciation per unit = $0.2 per unit
Machine’s second-year depreciation:
Depreciation second-year = depreciation per unit * second-year units of product
Depreciation second-year = $0.2 * 33,300 units
Depreciation second-year = $6,600
Final answer:
The second year's depreciation of machinery used by the company will be calculated using the units-of-production method is $6,836.50.
Explanation:
To determine the machine's second-year depreciation using the units-of-production method, we need to calculate the depreciation per unit and then multiply it by the number of units produced in the second year.
The depreciation per unit can be calculated by subtracting the salvage value from the initial cost and then dividing it by the estimated total units over the useful life of the machine. In this case, the calculation would be:
Depreciation per unit = (Initial cost - Salvage value) / Estimated total units
Substituting the given values:
Depreciation per unit = ($84,600 - $6,000) / 393,000 = $0.205 per unit
Now, we can calculate the machine's second-year depreciation by multiplying the depreciation per unit by the number of units produced in the second year.
Depreciation expense = Depreciation per unit x Number of units produced in the second year
Substituting the given values:
Depreciation expense = $0.205 per unit x 33,300 units = $6,836.50
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Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm ________ output and ________ prices.
The Kilp Sisters Trust is required to distribute $60,000 annually equally to its two income beneficiaries, Clare and Renee. If trust income is not sufficient to pay these amounts, the trustee can invade corpus to the extent necessary. During the current year, the trust generates only taxable interest income and records DNI of $160,000; the trustee distributes $30,000 to Clare and $150,000 to Renee. a. How much of the $150,000 distributed to Renee is included in her gross income? $. b. How much of the $30,000 distributed to Clare is included in her gross income? $ is included in her gross income. c. The distributions which are composed of trust accounting income that is required to be distributed currently come under .
Sweet Treats sells ice cream cones for $4.25 per customer. Variable costs are $1.25 per cone. Fixed costs are $3,300 per month. What is the company's contribution margin ratio?
Retained earnings, December 31, 2019 $ 347,600 Cost of buildings purchased during 2020 46,600 Net income for the year ended December 31, 2020 56,100 Dividends declared and paid in 2020 32,200 Increase in cash balance from January 1, 2020, to December 31, 2020 24,000 Increase in long-term debt in 2020 44,100 Required: From the above data, calculate the Retained Earnings balance as of December 31, 2020:
Assets Liabilities
Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%.
Amount Deposited (Dollars) Change in Excess Reserves (Dollars) Change in Required Reserves (Dollars)
1,800,000
Answers
Answer:
a) First Main Street Bank's T-account (before the bank makes any new loans) will look as follows:
Assets | Liabilities
Reserves $1,800,000 | Deposits $1,800,000
b) The effect of a new deposit on excess and required reserves when the required reserve ratio is 25% are as follows:
Amount Deposited (Dollars) = $1,800,000
Change in Excess Reserves (Dollars) = $1,350,000
Change in Required Reserves (Dollars) = $450,000
Explanation:
a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans)
A deposit of $1,800,000 by Yakov into his checking account at First Main Street Bank will lead to the creation of both an asset and a liability for First Main Street Bank.
The reserves on the asset side of the T-account of First Main Street Bank will therefore increase by $1,800,000. This gives the bank the opportunity to able to give loan to its other customers from the additional reserves.
On the other hand, the deposit of $1,800,000 by Yakov will be recorded as a demand deposit on the liability side of the T-account of First Main Street Bank. This is because it is possible for Yakov to withdraw his deposit at any time.
This transaction will therefore be reflected as follows:
Assets | Liabilities
Reserves $1,800,000 | Deposits $1,800,000
b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%.
Note: See the attached excel file to see how the table will actually look.
The required reserve ratio of 25% implies that First Main Street Bank is required by law to hold 25% of the new reserves which in this case is the initial deposits from Yakov.
By calculating this, 25% of $1,800,00 is $450,000 and it indicates an increase of $450,000 in the required reserve of First Main Street Bank.
After deducting 25% from 100%, we have 75% left. And 75% of $1,800,000 is $1,350,000. This $1,350,000 is the excess reserves that First Main Street Bank can use to give loans to other customers.
The breakdown is therefore as follows:
Amount Deposited (Dollars) = $1,800,000
Change in Excess Reserves (Dollars) = 75% * $1,800,000 = $1,350,000
Change in Required Reserves (Dollars) = 25% * $1,800,000 = $450,000
The reserve ratio is part of the reservable liabilities that commercial banks should hold on to, rather than lending or investing.
What is a reserve ratio?
This is a requirement determined by the country's largest bank, the United States Federal Reserve. It is also known as the cash reserve ratio.
As per the information, the calculation of the reserve ratio from the government bond:
Now, this 1,800,000 will be part of demand deposits on the Assets side, and on the liability side, it will form part of the reserves.
Assets I Liabilities
Reserves $1,800,000 | Deposits $1,800,000
Secondly, the required reserve to be maintained from the reserves is $450,000 and the excess reserve is $1,350,000 that can be utilised for lending loans to the Public.
Hence, the amount of reserve ratio that First Main street Bank will maintain is $450,000.
To learn more about reserve ratio, refer:
B) maintain low unemployment.
C) raise the standard of living.
D) increase profits and spending.
Answers
the right answer is to increase profits ans spending
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?
Answer
a.
Scissorwire Inc. can register with the SEC at any point after the dip in shares.
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.
c.
The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.
d.
Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.
Answers
Answers
Answer: Incremental revenue =360
Given:
N=600 (number of defective units)
P1=$2 (price if not rebuilt)
P2=$5 (price after rebuilt
X=.60+1.0+.80=2.4 (incremental costs)
R1=600(2)=1200
R2=600(5)-600(2.4)
R2=3000-1440
R2=1560
Incremental revenue is computed as:
R2-R1
1560-1200
360
Answers
Answer: Option E
Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.
It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.
Thus, from the above we can conclude that the correct option is E.
Answers
Answer:
Well, it depends on the product. But, I'd say, first, an idea for the product. Creating/designing and refining the product is next. Then, when finally satisfied, begin mass production
Explanation: