Archie Co. purchased a framing machine for $55,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $2,000 at the end of four years. Using the sum-of-the years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round intermediate calculations.)
a) $16,500 and $16,500 respectively.
b) $16,500 and $14,500 respectively.
c) $15,900 and $17,900 respectively.
d) $15,900 and $15,900 respectively.

c) $15,900 and $17,900 respectively.

Explanation:

First calculate the Sum of all years digits  

Sum of all years digits = 4 + 3 + 2 + 1 = 10

Now calculate the Depreciation rate using following formula

Depreciation rate = Remaining useful life / Sum of years digits

2021

Depreciation Rate = 4 / 10 = 0.40 = 40%

2022

Depreciation Rate = 3 / 10 = 0.30 = 30%

2023

Depreciation Rate = 2 / 10 = 0.20 = 20%

2024

Depreciation Rate = 1 / 10 = 0.10 = 10%

The depreciation schedule is attached. Please find it.

On December 31, 2022 the depreciation expense is $15,900 and Ending Book Value is $17,900

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.