Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer letter d. Thank you! Please answer the wrong two answers. A tractor for over-the-road hauling is purchased for $100,000.00. It is expected to

image text in transcribed

Please answer letter d. Thank you!

image text in transcribed

Please answer the wrong two answers.

A tractor for over-the-road hauling is purchased for $100,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,600.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life. a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 16066.67 3600 book value for year 6 = $ b. Use declining balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 2664.96671 book value for year 6 = $ 3600 C. Use double declining balance depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = 4388.27 book value for year 6 = $ 8779.14952 d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. 19666.69 Depreciation for year 6 = book value for year 6 = $ 3600 Cowboy Metal Cutting produces a laser-cut part based on customer orders. The number of units requested on a customer's order for the laser-cut part can vary from 1 to 150. Cowboy has determined that three different cutting machines can be used to produce this part. An economic analysis of production costs has produced the data in the table below. Cutting Tool ID Fixed Cost per Order Variable Cost per Unit CT 1 $ 270 $9.75 CT 2 $725 $3.00 CT 3 $520 $4.60 Your answer is partially correct. Try again. For all order sizes between 1 and 150, determine the preferred (most economical) cutting machine for an order of that size: For an order size up to 50 CT 1 units, cutting tool is preferred. X For an order size greater than 50 150 units and up to units, cutting tool CT 3 v is preferred. x 125 For an order size greater than units, cutting tool CT 2 is preferred

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing That Matters Case Studies Discussion Guide

Authors: Norman Marks

1st Edition

B089J5JCL2, 979-8650410546

More Books

Students also viewed these Accounting questions