Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?
A. $480.
B. $680.
C. $300.
D. $600.
E. $544.
Answer: E
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Risk ________ looks at how cultures vary in the extent to which they are willing to take risks.
Fill in the blank(s) with the appropriate word(s).
The allowance method for uncollectibles is used by a firm
a. when it knows that at the time of sale, it will experience some reduction in future cash flows. b. when the firm can estimate with reasonable precision the amount of reduction in future cash flows at the time of sale. c. to reduce reported earnings in the period of sale to the amount of the expected net cash collections. d. all of the above. e. none of the above.
A company issues 6%, 5 year bonds with a par value of $800,000 and semiannual interest payments. On the issue date, the annual market rate of interest is 8%. Compute the issue (selling) price of the bonds. The following information is taken from present value tables:Present value of an annuity (series of payments) for 10 periods at 3%8.5302Present value of an annuity (series of payments) for 10 periods at 4%8.1109Present value of 1 (single sum) due in 10 periods at 3%0.7441Present value of 1 (single sum) due in 10 periods at 4%0.6756
What will be an ideal response?
Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered:ProductNumber ofComponentsNumber ofSetupsNumber ofDirect Labor HrsBase 15 20 700 Loaded 25 40 600 Overhead costs$27,000 $22,500 The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Loaded model?
A. $34,050. B. $31,875. C. $36,000. D. $28,125. E. $31,125.