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On 2009 January 2, a new machine was acquired for USD 900,000. The M chine has an estimated salvage value of USD 100,000 and an estimated useful life of 10 years. The machine is expected to produce a total of 500,000 units of product throughout its useful life. Compute depreciation for 2009 and 2010 using each of the following methods:
a. Straight line.
b. Units of production (assume 30,000 and 60,000 units were produced in 2009 and 2010, respectively).
c. Double-declining balance.
Explain the differences in the four methods of costing you have used in (a.i) and (a.ii) and in which situation you would use them.
Theory of Interest- Non-annual interest rates and annuities
Troy Department Stores offers employees discounts on merchandise carried in the store. Newly hired employees receive a 10% discount. The discount rate increases 1% each year until employees have 20 years of service.
Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
zubick corporation produces and supplies 2 types of component parts to industrial equipment manufacturers. these parts
BT's absorption costing Income Statement for the month ended and reconcile and explain the difference between BT's Variable and Absorption Net Operating Income.
Calculate the cost of the ending inventory using the FIFO, LIFO, and weighted average cost methods.
Compute the budgeted factory overhead rate, compute the factory overhead applied and compute the amount of over/underapplied overhead.
Horizontal analysis percentages for Spartan Company's sales, cost of goods sold, ad expenses are listed here and explain whether Spartan's net income increased, decreased, or remained unchanged over the 3-year period.
What is the effect of error on the accounting equation and what is the ending balance in stockholders equity
Explain the circumstances under which the retail inventory method would be applied and the advantages of using the retail inventory method.
Prepare an income statement using the format presented on page 243. Assume a 25% tax rate.
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