An asset will cost $1,750 when purchased this year. It is further expected to have a salvage value of $250 at the end of its five year depreciable life. Calculate complete depreciation schedules giving the depreciation charge, D(n), and end-of-year book value, B(n), for straight-line (SL), Declining Balance (DB) with a rate of d=0.25, double declining balance (DDB), and modified accelerated cost recovery (MACRS) depreciation methods. Assume a MACRS recovery period of 5 years with the following depreciation rates. Year 1 2 3 4 5 6
d (MACRS) 0.2 0.32 0.192 0.1152 0.1152 0.0576
a. check which of the four methods provides the maximum present worth?
b. If the owner starts the depreciation process using DDB depreciation method at which year the owner should switch to straight line method? Justify your response.
i=10%

Which term refers to the cost that motivates an economic decision

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr