"A city project to build a soccer complex with six fields Is in the planning phase of the project life cycle. One of the project team members shares details from a project he worked on to build two soccer fields completed a year ago." Which estimation method should the project team use for the new project?
a. Template
b. Ratio
c. Top-down
d. Bottom-up
Answer:
a. Template
Explanation:
A template of the previous soccer fields that have been previously constructed should be used in the planning of the soceer fields that are about to be built.
Certain adjustments should be made to the template to account for differences.
I hope my answer helps you
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $16,300 for March and $32,600 for April. What are the budgeted cash receipts from sales on account for April
Answer:
Total cash collection= $20,375
Explanation:
Giving the following information:
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
Sales:
March= $16,300
April= $32,600
Cash collection April:
Sales on account from April= 32,600*0.25= 8,150
Sales on account from March= 16,300*0.75= 12,225
Total cash collection= $20,375
Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $28,525. Clayborn's May bank statement shows $25,000 on deposit in the bank. Determine the adjusted cash balance using the following information:Deposit in transit $5,200Outstanding checks $4,600Bank service fees, not yet recorded by company $25A NSF check from a customer, not yet recorded by the company $600Required:What should be the adjusted cash balance?
Answer:
$27,900
Explanation:
The computation of adjusted cash balance is shown below:-
Adjusted cash balance = Balance at May 31 - bank service fees - NSF check
= $28,525 - $25 - $600
= $27,900
Therefore for computing the adjusted cash balance we simply deduct the bank service fee and NSF check from balance at may 31
Hence, the adjusted cash balance is $27,900
When the end-of-period spreadsheet is complete, the adjustment columns should have:_________. a) total debits greater than total credits if a net income was earned b) total debits greater than total credits if a net loss was incurred c) total debits are equal to total credits d) total credits greater than total debits if a net income was earned
Answer:
C. Total debits are equal to total credits
Explanation:
When the end-of-period spreadsheet is complete, the adjustment columns should have:
Total debits equal to total credits.
When this happens, the trial balance is considered to be balanced.
If revenues are greater than expenses, then income statement will give a credit balance. If expenses are bigger than revenues, your income statement will show a debit balance.
If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he need to fund his prizes
Answer:
The answer is $3,214,285.71
Explanation:
Price of each award is $45,000
And there are 5
Therefore, we have 5 x $45,000
=$225,000.
So, $225,000 is the future value.
Rate of return(r) in 7% and it is being assumed that it is forever.
So, so how much will be needed to fund his prizes(present value)?:
PV = FV/r
= $225,000/0.07
=$3,214,285.71
Adair Valley issued $20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a tax on the revenue from events held in the arena and will mature in 2024. During 2018, Adair Valley budgeted $2,500,000 of tax revenues and $2,000,000 for interest on the bonds in its Debt Service Fund. Prepare the journal entries necessary to record (a) the budget and (b) the expenditure when the interest comes due for payment.
Answer: Please see explanation column for answer.
Explanation:
a) Journal entry to record the budget
Account Debit Credit
Estimated Revenues $2,500,000
Appropriation $2,000,000
Budget fund $500,000
Calculation
Budget fund= Estimated Revenues-Appropriation = $2,500,000- $2,000,000= $500,000
b) Journal entry to record the the expenditure when the interest comes due for payment.
Account Debit Credit
Expenditure Interest $2,000,000
Matured Interest payable $2,000,000
As an economist working at the International Monetary Fund, you are given the following data for Burundi: observed per capita GDP, relative to the United States, is 0.01; predicted per capita GDP, given by , is 0.18. What is total factor productivity
Answer: 0.056
Explanation:
Total factor productivity is the ratio of the aggregate that is, the total output to the aggregate inputs. Total factor productivity is used to measure economic efficiency of a country.
From the question, we are informed that Burundi's observed per capita GDP, relative to the United States, is 0.01 and the predicted per capita GDP is 0.18. Then, the total factor productivity will be:
= 0.01/0.18
= 0.056
Year 1 $ 28,000 $ 112,000 $ 196,000 Year 2 124,000 112,000 76,000 Year 3 184,000 112,000 64,000 Totals $ 336,000 $ 336,000 $ 336,000 1. Assume that the company requires a 9% return from its investments. Using net present value, determine which projects, if any, should be acquired. 2. Using the answer from part 1, is the internal rate of return higher or lower than 9% for Project C2?
Answer:
Project c3 should be acquired
The IRR of c2 is greater than 9%
Explanation:
Here is the beginning part of the question:
Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $276,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1 and FVA of $1) (Use appropriate factor(s) from the tables provided.)
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR and NPV can be calculated using a financial calculator:
NPV
For project C 1
Cash flow in year 0 = $-276,000
Cash flow in year 1 = $ 28,000
Cash flow in year 2 = $124,000
Cash flow in year 3 = 184,000
I = 9%
NPV = $-3861.85
For project C2
Cash flow in year 0 = $-276,000
Cash flow in year 1 = $ 112,000
Cash flow in year 2 = $ 112,000
Cash flow in year 3 = $ 112,000
I = 9%
NPV = $7,505
IRR = 10.52 %
For project C 3
Cash flow in year 0 = $-276,000
Cash flow in year 1 = $ 196,000
Cash flow in year 2 = 76,000
Cash flow in year 3 = 64,000
I = 9%
NPV = 17,203.94
Project c3 should be acquired because it has the highest NPV.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
OJ's Orange Juice produces orange juice to sell in a competitive market.Given uncertainty in weather patterns, OJ has to determine how much juice to produce before knowing the competitive price. It is estimated that there is a 10 percent chance the competitive price will be $5 and a 90 percent chance the price will be $2. If the marginal cost of producing orange juice is MC(Q) = 2Q, then to maximize expected profits, OJ should produce:__________.a- 0.25 units. b- 2.5 units. c- 1.15 units. d- 0.9 units.
Answer:
c- 1.15 units.
Explanation:
This can be calculated as follows:
Expected price at 10 percent = $5 * 10% = $0.5
Expected price at 90 percent = $2 * 90% = $1.80
Total expected price (EP) = $0.5 + $1.80 = $2.3
Since profit is maximized when EP = MC, we have:
2.3 = 2Q
Q = 2.3 / 2 = 1.15
Therefore, OJ should produce 1.15 units to maximize expected profit. The correction is therefore c- 1.15 units.
Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9%, paid annually. The issue price will be $1,000. The tax rate is 25%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt
Answer:
After cost of debt for a floatation cost of 2% is 6.62%
Explanation:
After tax cost of debt = Market interest × (1- tax rate)
We will get the cost of debt using the time value of money principle.
PV = -$1,000
Pmt = $1,000 × 9%
=$90
P/yr = 1
N = 20
FV =1,000
Tax rate = 25%
YTM
The market interest rate is 9% using financial calculator hence;
After-tax cost of debt = Market interest × (1-tax rate)
= 0.09 × (1 - 0.25)
= 0.0675 or 6.75%
If floatation cost is 2%, then
Net receipts after floatation cost = Cost × (1 - floatation rate)
= 0.0675 × (1- 0.02)
= 0.06615 or 6.62%
Examine the equal opportunity laws of another country, not the United States. Are the laws in other countries as much a concern for HRM specialists as they are in the United States?
Answer:
The equal opportunity laws of another country, not the United States is discussed below in details.
Explanation:
An equal opportunity system is a certificate that declares what measures a company takes to eliminate and stop discrimination in the workplace.
The United Kingdom employment equality law is an organization of law that legislates against prejudice-based activities in the workplace.
The prime legislation is the Equality Act 2010, which condemns discrimination in passage to education, government services, private services, and goods, or assumptions in addition to employment.
Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earnings are growing at a rate of 5%, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is Firm L's cost of equity?
Answer:
Firm L's cost of equity is 13.2%
Explanation:
In order to calculate Firm L's cost of equity we would have to calculate the following formula:
Firm L's cost of equity=Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
D/E = debt/equity
D/E = $200,000/$300,000
D/E=0.6666
Therefore, Firm L's cost of equity= 12%+0.6666*(12%-9%)*(1-0.4)
Firm L's cost of equity=13.2%
Firm L's cost of equity is 13.2%
Assume that Clampett, Inc., has $390,000 of sales, $340,000 of cost of goods sold, $250,000 of interest income, and $230,000 of dividends. What is Clampett, Inc.'s excess net passive income
Answer:
Clampett, Inc.'s excess net passive income is $262,500.
Explanation:
First we need to calculate the Gross Receipt
Gross Receipt
Sales $390,000
Interest Income $250,000
Dividend $230,000
Gross receipts $870,000
25% of Gross receipt = $870,000 x 25% = $217,500
Now Calculate the passive income
Interest Income $250,000
Dividend $230,000
Passive Income $480,000
Now calculate the excess passive income
Excess passive income = Passive income - 25% of gross receipt
Excess passive income = $480,000 - $217,500 = $262,500
Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect your salary to be $42,000 one year from now and you also expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 9%. The present value (PV) (at age 30) of your retirement savings is closest to
Answer:
$50,855.62
Explanation:
I prepared an excel spreadsheet to determine the yearly contributions to the plan and their future value.
once you reach 65 years, your retirement account should have $1,038,165. Now we need to determine the present value = $1,038,165 / (1 + 9%)³⁵ = $50,855.62
1. Write about whether or not you believe productivity would go up, down, or stay the same in an enterprise where the workers are owners versus a traditional workplace. How would this affect GDP, inflation, and other macroeconomic variables
Answer:
Productivy would go up only as long as some of the workers can become competent managers.
Explanation:
The problem with worker ownership of the means of production (the firm), which is what socialism is about, is that workers do not necessarily have managerial skill, and as result, are likely to be unable to run the company efficiently.
In case this does not happen, and the workers manage to run the company well, GDP would increase because productivity in the firm would rise. Inflation would likely fall down because more productivity means more output of goods and services, and inflation tends to have a inverse relationship with output (although it also depends on other variables like the rate of growth of the money supply).
Finally, another macroeconomic variable that would positively affected is employment rate, because a more efficient company would likely require new workers.
On August 31, 2012, merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31, 2013, reveal the following itemized costs. Invoice cost of merchandise purchases $ 119,070 Purchase discounts received 2,500 Purchase returns and allowances 5,715 Costs of transportation-in 3,900 3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.
Answer:
Hi, the question you provided is missing the sales amounts.
However, the important principles for this questions are explained below :
A multiple-step income statement shows separately income derived from Primary Activity of the entity (Operating Income / Loss) and income that includes Secondary Activities of the Company (Net Income / Loss).
Operating Expenses used in determination of Operating Income can be further categorized into Selling, General and Administrative Expenses.
Here is what the multiple-step income statement would look like using the data and information available.
Multiple-step income statement for month ended August 31, 2012
Sales Revenue (information missing) $ ? ? ?
Less Cost of Sales :
Opening Merchandise $0
Add purchases $ 119,070
Add transport expenses $3,900
Less Purchase returns and allowances ($5,715) $117,255
Net Purchases $117,255
Less Closing Merchandise ($32,684) ($84,571)
Gross Profit $ ? ? ?
Operating Income
Discount Received $2,500
Net Income / Loss $ ? ? ?
During a Value-Added Flow Analysis, the team studied a process step where they checked the customer's credit. What is the best label for this step?
Answer:
Non-Value-Adding but required.
Explanation:
A Value-Added flow analysis is a graphical visualization tool that is used for identifying non-essential activities or steps within a process. It basically, allows individuals or team to analyze, identify and separate value-adding activities from non-value-adding activities or steps in an organization. This simply means that, it avails an organization or business the ability to separate activities that add value for the user from the activities that are non-value-adding.
The value-adding activities are the steps that adds value to an organization's product or project while the non-value-adding activities are those steps which do not add any value to the organization's product.
In this scenario, during a value-added flow analysis, the team studied a process step where they checked the customer's credit. The best label for this step is Non-value-adding but required.
The process of checking a customer's credit is a necessary task or a required step but in the real sense of lean, it is considered as a non-value-adding activity. This is simply because, it is required to check the customer's credit in order to update the balance sheet and to know the amount that is granted to these customers.
However, it does not add any value to the organization.
Whenever currency is deposited into a commercial bank, cash goes out of circulation and, as a result, the supply of money is reduced.
1. True
2. False
Answer:
The answer is false
Explanation:
The money supply is the total value of money available in an economy at a given point in time.
M1 is the money supply that is composed of physical currency and coin, demand deposits etc. Therefore, money deposited into a commercial
bank adds and does not reduce the money in circulation.
The answer to the question is false.
If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.)\
Answer:
Debit to cost of goods sold and credit to factory overhead
Explanation:
Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied.
What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry.
The adjusting journal entry here is that we debit cost of goods sold and credit factory overhead
Determine the missing 2022 change percentages for (a) Intangible assets and (b) Total assets in the horizontal analysis for Mort Company
Answer:
The information that the question is referring to is this:
Assets 2017 2016 Amount Percent
Current Assets $900,000 $800,000 $100,000 12.50%
Plant Assets $475,000 $550,000 ($75,000) (13.6%)
Intangible Assets $300,000 $225,000 $75,000
Total Assets $1,675,000 $1,575,000 $100,000
Explanation:
Change in intangible assets
75,000 x 100 / 225,000 = 33.3%
Change in total assets
100,000 x 100 / 1,575,000 = 6.3%
Max, an employee at HiFi LLC, is responsible for performing the job analysis process in her organization. She is currently planning the job analysis. Which of the following should typically be Max's next step?
a. Preparing for and introducing job analysis
b. Developing job descriptions and job specifications
c. Conducting the job analysis
d. Maintaining and updating job descriptions
Answer:
The correct answer is the option C: Conducting the job analysis.
Explanation:
To begin with, the term of "Job Analysis" refers to a method used in the organizations with the purpose of generating job descriptions and specifications in order to establish a better communication inside the organization and also to know better who the best candidates will be for future jobs. Therefore that this analysis focus on the correct comprehension from the analyst regarding the job that is being under analysis. When the analysis has began the person in charge of it will have to planned carafully the way that she will get the information for later transform it into the job description and that is why that once that the planning has been done the person needs to conduct the job analysis in order to obtain the results expect that are the proper description of the job and all of its specifications for future employees.
Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced AquariumAquarium's suppliers to lower the prices that Aquarium will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Aquarium's ending inventory is $75,000 below what Aquarium actually paid for the goods, which was $200,000.
Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
Requirements:
a. What accounting action should Aquarium take in this situation?
b. Give any journal entry required.
c. At what amount should Aquarium report Inventory on the balance? sheet?
d. At what amount should the company report Cost of Goods Sold on the income? statement?
e. Discuss the accounting principle or concept that is most relevant to this situation.
Answer:
a. What accounting action should Aquarium take in this situation?
the balance of inventory account should decrease to match the replacement cost.
b. Give any journal entry required.
Dr Cost of goods sold 75,000
Cr Inventory 75,000
c. At what amount should Aquarium report Inventory on the balance? sheet?
Inventory = $200,000 - $75,000 = $125,000
d. At what amount should the company report Cost of Goods Sold on the income statement?
Cost of goods sold = $820,000 + $75,000 = $895,000
e. Discuss the accounting principle or concept that is most relevant to this situation.
US GAAP states that companies must use the lower of cost or market rule, which means that inventory must be recognized at the lowest cost either original purchase cost or market value.
If Galaxia has a GDP that is 10 times larger than Myopia, which country would likely have greater marginal returns to capital based on the law of diminishing returns to capital
Answer:
Myopia
Explanation:
The law of marginal returns states that as the total amount of any production factor increases, the output per unit of that factor will start to decrease. In other words, the marginal output or return from that factor will decrease. E.g. if you invest $100 in a small business, you will require a very high rate of return. If instead, you invest $1,000 in corporate bonds, you will only obtain moderate to low yields.
In this case, $1,000 invested in Myopia (smaller economy) should return a higher yield than $1,000 invested in Galaxia. Also, the $1,000 invested in Myopia will have a larger economic effect than the $1,000 invested in Galaxia.
The asset, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2018. The retained earnings was $35,000 at the beginning of the year. At year end, common stock was $17,000 and dividends were $61,000.
Notes Payable $14,000
Rent Expense 23,000
Cash 3,200
Office Supplies 5,100
Salaries Expense 65,000
Property Tax Expense 2,200
Office Furniture $48,400
Utilities Expense 7,200
Accounts Payable 3,600
Service Revenue 154,600
Accounts Receivable 9,300
Miscellaneous Expense 3,800
Required:
Prepare the income statement for Drought Design Studio for the year ending December 31, 2018.
Answer:
Drought Design Studio
Income statement for the year ending December 31, 2018.
Revenue
Service Revenue $154,600
Expenses
Rent Expense $23,000
Salary Expense $65,000
Property Tax Expense $2,200
Utilities Expenses $7,200
Miscellaneous Expenses $3,800
Less: Total Expenses $101,200
Net Income $53,400
During March, Zea Inc. transferred $67,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $73,000. The journal entries to record these transactions would include a:
Answer:
Credit to Work in process of $67,000
Explanation:
Preparation of the ournal entries to record the transactions
Since we were told Zea Inc. transferred the amount of $67,000 from Work in Process to Finished Goods this means the transaction will be recorded as:
Dr Finished Goods 67,000
Cr Work in Process 67,000
Since we were told that Zea Inc. transferred recorded a Cost of Goods Sold for the amount of $73,000 this means that the transaction will be recorded as:
Dr Cost of Goods Sold 73,000
Cr Finished Goods 73,000
Explain how the Federal Reserve Board can increase or decrease the money supply using each of the following tools: reserve requirements, open-market activities, and discount rates
Answer:
Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.
Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.
Discount rates – Decrease the discount rate to increase the money supply or vice versa.
Explanation:
The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.
In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.
Rick prepared financial statements for MegaCorp knowing that it was going to use his statements to apply for a loan with Big Bank. When Big Bank turned MegaCorp down, it applied to Fourth Bank for a loan. MegaCorp presented the statements prepared by Rick to Fourth Bank which gave the company a loan. It was discovered that Rick was negligent in preparing the statements, and Fourth Bank sued Rick. Under which of the following tests is Rick liable?
a. Ultramares doctrine
b. Foreseeable doctrine
c. Restatement doctrine
d. Both the foreseeable doctrine and the Restatement doctrine
Answer:
The correct answer is the option D: Both the foreseeable doctrine and the restatement doctrine.
Explanation:
On the one hand, the foreseeable doctrine dictates that there is a limit in the liability of party for those acts that he has done and that carry a risk of foreseeable harm. Therefore that this point of view establishes that a reasonable person would be able to understand and so to know when a certain action would bring certain damages to another party.
On the oher hand, the restatement doctrine establishes that there are a set of treatises on legal subjects that primarily are looking for to inform judges and lawyers about general principles of common law. And therefore that those treatises will help both the judge and the lawyers at the time of the trial when the person has to go to court.
Gold standard required countries to A. keep the supply of foreign exchange less than their domestic money supply. B. restrict the demand for foreign goods. C. keep the supply of their domestic money constant. D. keep the supply of their domestic money fixed in proportion to their gold holdings.
Answer:
D.) Keep the supply of there domestic money fixed in proportion to their gold holdings.
Explanation:
The Gold Standard was a monetary system under which countries fixed the value of their money in terms of a specified amount of gold. With the gold standard, countries agreed to convert the paper money into a fixed amount of gold.
Hope this helps you out! : )
Rascal Corp. borrows $500,000 by signing on a 1-year, 12% promissory note from General Finance Company and assigns $600,000 of its accounts receivable as collateral for the loan. General Finance charges a financing fee of 1% of the receivables assigned. The journal entry for Rascal to record the borrowing will include a
Answer:
Dr Cash 494,000
Dr Finance Charge expense6,000
Cr Liability - Financing arrangement 500,000
Explanation:
The journal entry for Rascal to record the borrowing
Since Rascal Corp was said to borrow $500,000 from the General Finance Company in which $600,000 of its accounts receivable as collateral for the loan was been assigned and the General Finance charges a financing fee of 1% of the receivables assigned which mean the transaction will be recorded as:
DrCash 494,000
(500,000-6,000)
Dr Finance Charge expense6,000
Cr Liability - Financing arrangement 500,000
Calculation for Cash (difference)
Account receivable $600,000 ×General Finance charges of 1% =Finance Charge expense 6,000
On January 1, the Matthews Band pays $66,600 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 55 concerts. Compute the first-year depreciation using the units-of-production method.
Answer:
Annual depreciation= $17,765
Explanation:
Giving the following information:
Original cost= $66,600
Number of units= 200
Salvage value= $2,000
During the first year, the band performs 55 concerts.
To calculate the annual depreciation under the units-of- production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units operated
Annual depreciation= [(66,600 - 2,000)/200]*55
Annual depreciation= $17,765
Due to use, wear and tear, the monetary worth of an object decreases with time. Depreciation is the term used to describe this reduction.
Annual depreciation= $17,765
Giving the following data:
Original cost= $66,600Number of units= 200Salvage value= $2,000During the first year, the band performs 55 concerts.
To calculate the annual depreciation under the units-of- production method, we need to use the following formula:-Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units operated
Annual depreciation= [(66,600 - 2,000)/200]*55
Annual depreciation= $17,765
To know more about depreciation, refer to the link:
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