An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciationamount in the thirdyear and the BV at the end of the fifth year of life by each of these methods:
Answers
Answer:
straight line depreciation:
depreciation expense per year, the same for every year = ($60,000 - $12,000) / 14 = $3,428.57
book value end of year 1 = $56,571.43
book value end of year 2 = $53,142.86
book value end of year 3 = $49,714.29
book value end of year 4 = $46,285.72
book value end of year 5 = $42,857.15
double declining balance:
deprecation expense year 1 = 2 x 1/14 x $60,000 = $8,571.43
book value end of year 1 = $51,428.57
deprecation expense year 2 = 2 x 1/14 x $51,428.57 = $7,346.94
book value end of year 2 = $44,081.63
deprecation expense year 3 = 2 x 1/14 x $44,081.63 = $6,297.38
book value end of year 3 = $37,784.25
deprecation expense year 4 = 2 x 1/14 x $37,784.25 = $5,397.75
book value end of year 4 = $32,386.50
deprecation expense year 5 = 2 x 1/14 x $32,386.50 = $4,626.64
book value end of year 5 = $27,759.86
sum of digits:
depreciable value = $60,000 - $12,000 = $48,000
total sum of digits = 120 years
deprecation expense year 1 = $48,000 x 15/120 = $6,000
book value end of year 1 = $54,000
deprecation expense year 2 = $48,000 x 14/120 = $5,600
book value end of year 2 = $48,400
deprecation expense year 3 = $48,000 x 13/120 = $5,200
book value end of year 3 = $43,200
deprecation expense year 4 = $48,000 x 12/120 = $4,800
book value end of year 4 = $38,400
deprecation expense year 5 = $48,000 x 11/120 = $4,400
book value end of year 5 = $34,000
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OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.2 million. Interest is payable at maturity.Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:Interest rate Fiscal year-end Interest expense12% December 31 10% September 30 9% October 31 6% January 31
LO 1.3Briefly discuss the chain of command for someone being hired into an organization as a staff managerial accountant.
Firm A and B have identical business except that their financing is different: Firm A: EBIT = X = $10, D = $20 Firm B: EBIT = X = $10, D = $80 Suppose that corporate tax rate TC is 40%, cost of debt is RD is 10% for both. Please answer the following questions: Note: If your choice is A, then type in A. Do not type (A) or anything else. 1. Which firm has a greater FCF (free cash flow)? Your answer: (A) Firm A (B) Firm B (C) Both have the same FCF (D) Hard to say 2. What is firm A’s (annual) tax shield? Your answer: (A) $0 (B) $0.8 (C) $8 (D) $4 (E) Hard to say 3. What is firm B’s (annual) tax shield? Your answer: (A) $0 (B) $0.32 (C) $3.2 (D) $8 (E) Hard to say
Suppose the price of salt increases by 25 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 4 percent. The cross-price elasticity of demand between salt and pepper is nothing. (Enter your response rounded to two decimal places and include a minus sign if appropriate.) In this example, salt and pepper are ▼ substitutes not related complements . Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between salt and pepper would be A. negative. B. zero. C. positive. D. greater than 1. E. greater than minus1.
Answers
Answer and Explanation:
The Calculation of Predetermined OH Rate is shown below:
For Materials Handling, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $54,000 ÷ 96
= $562.50 per part
For Machine Setup, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $204,000 ÷ 60
= $3,400 per setup
For Insertion of Parts, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $486,000 ÷ 96
= $5,062.50 per part
Now
Calculation of allocated OH is
For Basic Model:
Allocated OH is
= $562.50 × 32 + $3,400 × 20 + $5,062.50 × 32
= $248,000
For Professional Model:
Allocated OH is
= $562.50 × 64 + $3,400 × 40 + $5,062.50 × 64
= $496,000
b. the economy is slipping into a recession, and the government may want to conduct expansionary fiscal policy.
c. there is upward pressure on the price level, and the government may want to conduct contractionary fiscal policy.
d. there is upward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
Answers
Answer:
e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
Explanation:
At the time of boom in the economy, the unemployment rate is beneath than the rate i.e. natural also it gives rise to the growth of the economy, along with it the expenditures, consumer spending also increased that ultimately increased the disposable income.
This results in the upward movement in terms of pressure on the aggregate demand that leads to a rise in the level of price and the real GDP also rises which reduced the unemployment
But when the aggregate demand is less so there is a downward pressure on the price as the level of price declines so that the aggregate demand increased and it is requirement made by the government for an expansionary fiscal policy that give increased in government spending or taxes decreased in order to raise the aggregate demand
Answers
Answer:
Part 1. Calculate the total prime cost for last week
Direct materials 28,000
Add Direct labor 28,000
Prime Cost 56,000
Part 2. Calculate the per-unit prime cost
per-unit prime cost=$56,000/5,600
=$10.00
Part 3. Calculate the total conversion cost for last week
Direct labor 28,000
Add Manufacturing Overheads 55,000
Total conversion cost 83,000
Part 4. Calculate the per-unit conversion cost.
per-unit conversion cost=$83,000/5,600
=$14.82
Explanation:
Part 1. Calculate the total prime cost for last week
Prime Cost = Direct Materials + Direct Labor
Part 2. Calculate the per-unit prime cost
Per Unit Prime Cost = total prime cost/number of units manufactured
Part 3. Calculate the total conversion cost for last week
Conversion Cost = Direct Labor + Manufacturing Overheads
Part 4. Calculate the per-unit conversion cost.
Per-unit conversion cost =Total Conversion Cost / number of units manufactured
Final answer:
The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.
Explanation:
The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = $56,000.
The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = $10 per unit (rounded to the nearest cent).
The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = $83,000.
The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).
Learn more about Cost Calculation here:
Answers
Answer:
The answer is "74,000".
Explanation:
Please find the complete question in the attached file.
Profitability analysis of the total business:
The combined value for final sales
Low cost of manufacturing end products:
Wool's cost
Process cost of segregation
Combined dyeing cost s
Gain benefit
Final answer:
To determine the overall profit in industries that process joint products, calculate the difference between the sales value of the final products and the costs of the raw materials inputs.
Explanation:
In industries that process joint products, the overall profit can be determined by calculating the difference between the sales value of the final products and the costs of the raw materials inputs. To find out the overall profit, follow these steps:
- Calculate the total sales value of the final products by summing up the sales values of all the final products.
- Calculate the total costs of the raw materials inputs by summing up the costs of all the raw materials.
- Subtract the total costs of raw materials inputs from the total sales value of the final products.
The resulting value will be the overall profit if all intermediate products are processed into final products.
Learn more about Overall profit in industries processing joint products here:
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B. Investors clearly believe this company is not in danger of bankruptcy
C. You made a very recommendation
D. The yield to maturity of these bonds is higher than the coupon rate
Answers
Answer:
B. Investors clearly believe this company is not in danger of bankruptcy
Explanation:
The yield of these bonds is much higher than its coupon rate, that is why there market price is so low. Clearly, this company is almost bankrupt. Investment grade bonds are A bonds, these would be junk bonds. These bonds are a very risky investment, that is why their yield is so high.
Answers
Answer:Summary task
Explanation: