Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4.

Required:

Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.

a. Straight-line method

b. Units-of-activity method

c. Double-declining-balance Method

Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.

a. Straight-line method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

b. Units-of-activity method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

c. Double-declining-balance Method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

Managers encourage your team to take time off. “I’m going nowhere fast.” This was the concern one of my clients recently. Her complaint wasn’t about working in quarantine per se, but about her frantic pace and static productivity. With the initial adrenaline rush of the crisis passed, vast numbers of my clients are reporting that they and their teams feel exhausted to the point of being useless, work demands are on the rise, and the time saved commuting has been converted to meetings that creep earlier into the day and fill the space between dinner and (a too-late) bedtime. It’s not just our commute times that have been co-opted but also our vacations. With nowhere to go and much to adjust to, most people have cancelled not only their travel reservations but their time off as well.

However, while the number of hours worked is soaring, people’s capacity to focus and

produce quality work is diving. Several of my clients — executives and managers, along with

their human resource partners — are increasingly seeking guidance on how to unplug and

recharge and encourage their employees to do the same. Companies are offering a range of

wellness options but also vary in their policies about taking time off, from “we trust you, take

care of what you need to” to “take some of your allotted vacation time” to “we need all hands

on deck right now and we can figure out time off later.”

Research shows the benefits of vacations to employee productivity and the economy — both

of which are currently under threat. Unused vacations have cost U.S. businesses $224 billion

a year. Project: Time Off’s new study found that 95% of people surveyed claimed that using

their paid time off was very important. And yet for the first time in recorded history, more

than half of Americans (55%) left vacation days unused, which equates to 658 million unused

vacation days. Take a moment for that number to set in. Imagine the impact those vacations

could have on the U.S. economy — on airlines, hotels, restaurants, attractions, and towns —

not to mention the impact it would have on individuals’ stress levels.

Remember, this is paid time off that is not being used. Let us ask you two questions to make

this idea come alive: Would you do your job for free? And do you take all your vacation days? If you say no to the first, you had better say yes to the second.

In truth, if you are not taking all your time off, you’re not working more — you’re volunteering your time. This is our favorite conclusion from the study: “By giving up this time off, Americans are effectively volunteering hundreds of millions of days of free work for their employers, which results in $61.4 billion in forfeited benefits.”

Working from home doesn’t mean working all the time. Ease the numbness induced with

back-to-back video calls and a long to-do list by reinventing vacations and time off, and

encouraging your team to do the same. As Limeade’s CEO Henry Albrecht stated in my survey,“Share the rules, show care, model the behaviors, and trust people to do the right thing.”

Question 4:

4) Can we use ethics to make to make better managerial decisions? In reference to the article

above, discuss two potential ethical approaches that we can adopt to make better

managerial decisions

Section C: Case study analysis (40%)

Read the case provided below and answer the questions.

Managers encourage your team to take time off. “I’m going nowhere fast.” This was the concern one of my clients recently. Her complaint wasn’t about working in quarantine per se, but about her frantic pace and static productivity. With the initial adrenaline rush of the crisis passed, vast numbers of my clients are reporting that they and their teams feel exhausted to the point of being useless, work demands are on the rise, and the time saved commuting has been converted to meetings that creep earlier into the day and fill the space between dinner and (a too-late) bedtime. It’s not just our commute times that have been co-opted but also our vacations. With nowhere to go and much to adjust to, most people have cancelled not only their travel reservations but their time off as well.

However, while the number of hours worked is soaring, people’s capacity to focus and

produce quality work is diving. Several of my clients — executives and managers, along with

their human resource partners — are increasingly seeking guidance on how to unplug and

recharge and encourage their employees to do the same. Companies are offering a range of

wellness options but also vary in their policies about taking time off, from “we trust you, take

care of what you need to” to “take some of your allotted vacation time” to “we need all hands

on deck right now and we can figure out time off later.”

Research shows the benefits of vacations to employee productivity and the economy — both

of which are currently under threat. Unused vacations have cost U.S. businesses $224 billion

a year. Project: Time Off’s new study found that 95% of people surveyed claimed that using

their paid time off was very important. And yet for the first time in recorded history, more

than half of Americans (55%) left vacation days unused, which equates to 658 million unused

vacation days. Take a moment for that number to set in. Imagine the impact those vacations

could have on the U.S. economy — on airlines, hotels, restaurants, attractions, and towns —

not to mention the impact it would have on individuals’ stress levels.

Remember, this is paid time off that is not being used. Let us ask you two questions to make

this idea come alive: Would you do your job for free? And do you take all your vacation days? If you say no to the first, you had better say yes to the second.

In truth, if you are not taking all your time off, you’re not working more — you’re volunteering your time. This is our favorite conclusion from the study: “By giving up this time off, Americans are effectively volunteering hundreds of millions of days of free work for their employers, which results in $61.4 billion in forfeited benefits.”

Working from home doesn’t mean working all the time. Ease the numbness induced with

back-to-back video calls and a long to-do list by reinventing vacations and time off, and

encouraging your team to do the same. As Limeade’s CEO Henry Albrecht stated in my survey,“Share the rules, show care, model the behaviors, and trust people to do the right thing.”

Question :

Identify two key stakeholders in the above article. What impact could the issue have on

them?

Read the case provided below and answer the questions.

Managers encourage your team to take time off. “I’m going nowhere fast.” This was the concern one of my clients recently. Her complaint wasn’t about working in quarantine per se, but about her frantic pace and static productivity. With the initial adrenaline rush of the crisis passed, vast numbers of my clients are reporting that they and their teams feel exhausted to the point of being useless, work demands are on the rise, and the time saved commuting has been converted to meetings that creep earlier into the day and fill the space between dinner and (a too-late) bedtime. It’s not just our commute times that have been co-opted but also our vacations. With nowhere to go and much to adjust to, most people have cancelled not only their travel reservations but their time off as well.

However, while the number of hours worked is soaring, people’s capacity to focus and

produce quality work is diving. Several of my clients — executives and managers, along with

their human resource partners — are increasingly seeking guidance on how to unplug and

recharge and encourage their employees to do the same. Companies are offering a range of

wellness options but also vary in their policies about taking time off, from “we trust you, take

care of what you need to” to “take some of your allotted vacation time” to “we need all hands

on deck right now and we can figure out time off later.”

Research shows the benefits of vacations to employee productivity and the economy — both

of which are currently under threat. Unused vacations have cost U.S. businesses $224 billion

a year. Project: Time Off’s new study found that 95% of people surveyed claimed that using

their paid time off was very important. And yet for the first time in recorded history, more

than half of Americans (55%) left vacation days unused, which equates to 658 million unused

vacation days. Take a moment for that number to set in. Imagine the impact those vacations

could have on the U.S. economy — on airlines, hotels, restaurants, attractions, and towns —

not to mention the impact it would have on individuals’ stress levels.

Remember, this is paid time off that is not being used. Let us ask you two questions to make

this idea come alive: Would you do your job for free? And do you take all your vacation days? If you say no to the first, you had better say yes to the second.

In truth, if you are not taking all your time off, you’re not working more — you’re volunteering your time. This is our favorite conclusion from the study: “By giving up this time off, Americans are effectively volunteering hundreds of millions of days of free work for their employers, which results in $61.4 billion in forfeited benefits.”

Working from home doesn’t mean working all the time. Ease the numbness induced with

back-to-back video calls and a long to-do list by reinventing vacations and time off, and

encouraging your team to do the same. As Limeade’s CEO Henry Albrecht stated in my survey,“Share the rules, show care, model the behaviors, and trust people to do the right thing.”

Question 3:

3) In your opinion, how can you ensure that taking time off is the best solution to increase

employee motivation and efficiency? Are there other solutions? What are the steps in

evidence based management thinking that can be used to make the best decision for your

employees?

Pls Summaries the entire article below:

PROS AND CONS OF A SECOND JOB

There was a time when moonlighting—taking on work in addition to your full-time employment—was for under-employed workers and the severely cash-strapped.
Today, even working professionals can be cash-strapped, and people in all fields and income groups are supplementing their main income by moonlighting. For some, the second job isn’t just for the bucks but also for the skills and the sense of being a free agent.
And although extra part-time jobs used to be verboten, many supervisors are flexible about a team member who picks up a gig on the side.
Experts suggest weighing the pros and cons carefully before you take on a second job.

Pros

Money—That’s still the biggest reason people take on extra work. And with gas above US$4 a gallon—and rising healthcare premiums, and income freezes—extra income can be a lifeline.

Security—“Many professionals today are looking at second jobs as a fallback because they feel, correctly, that their main job is not completely safe,” according to John McKee, president and founder of BusinessSuccessCoach.net and author of “Career Wisdom.”

Freedom—A second job or career can bring psychological benefits, such as the feeling of not being shackled to one company, experts say.

New skills—If you’re thinking about switching careers but can’t take the plunge, taking a part-time job could be a way to test the waters or boost your entrepreneurial skills, McKee said.

Cons

Time—Do you really want to spend 10 or 20 hours a week on another job, not to mention the commute hassle and the disappointment of significant others who’d rather see more of you, not less?

Conflict of interest—Consulting for a direct (or even indirect) competitor can put you in a dicey situation, according to J Daniel Marr, managing director of the New Hampshire law firm Hamblett and Kerrigan.
“This is a big issue in software and industries where you use part of what you learned from your primary employer,” Marr tells Yahoo HotJobs.
“Employers insist they have rights to your intellectual property.”

Performance slippage—One reason many employers look askance at moonlighters is the fear that they’ll burn out. Some companies may demand your full time and attention, even off-hours.

Employer irritation—Even if the company allows moonlighting, supervisors might not like the idea. “Some will say angrily, ‘We’re paying this guy x dollars a year and it’s still not enough?’” Marr says.

Tips to make it work

If you are considering a second job, the experts add these three tips: Pick an unrelated field—You’ll reduce the risk of burnout and conflict of interest. A nurse who builds websites part-time, a marketing professional who teaches music, or an insurance adjuster who moonlights as a landscape architect would be safer bets.

Check with HR—Many companies have moonlighting policies. But even if they don’t, it’s wise to see if your second job might be a conflict, especially if you’re considering a professional part-time job or one that’s related to your full-time job, Marr says.

Consider why you’re doing it—“Supplementing income is fine, but it’s best if a second job is part of an overall life and career plan,” McKee says. “Otherwise you risk scattering your resources.”

Provide a 250+ word response to the following question. Please separate your answers by the parts of the question.

Assignment #2 – Advertising Plan (15 points possible)

Pick ONE of the following options:

Develop an ad campaign for a company/product/service related to your employment (note that if your employment is B2B in nature, most B2B doesn’t involve much advertising. They tend to use other promotional elements. So keep that in mind), OR

Develop an ad campaign for your very own (hypothetical!) beauty salon OR auto parts store that’s been in business for just over one year

To try to develop demand for your company/product/service -- OR to resuscitate your ailing store -- you've decided to conduct an ad campaign. Following the steps outlined in the Lecture from Chapter 18, provide a detailed description of your campaign. Be sure to mention each of the areas listed below. Also be sure that you are focusing on strategies for this specific ad campaign -- not simply your advertising or marketing in general. Do not use any current advertising campaign! NOTE: If you select your current employer who uses a differentiated strategy, select only one specific target market for this campaign.

Please start by giving a brief explanation of the product/service/store you are advertising.

Step 1 -- target market of this specific ad campaign

Provide a geographic, demographic, and psychographic description of your target. I am looking for an insightful description of your target.

Step 2a -- objective of this specific ad campaign

Be sure you identify what you want this ad campaign to accomplish. Which of the types of advertising (informative, persuasive or reminder) will you be using and why?

Step 2b -- focus of campaign

What will be the focus of your ads – product-focused or institutional? Why?

Step 3 – determine your budget

Think about the size of your business, overall sales and success. You don’t need a specific budget number but discuss how these areas will affect how much you are able to spend and whether that potentially eliminates some types of media.

Step 4a – convey the message (Be creative!)

Develop a unique selling proposition (USP) for the campaign. Make sure to provide an explanation of your rationale for the USP.

Step 4b -- appeal

Will you use an informational or emotional appeal? Why?

Step 5a & b – media types and vehicles.

Describe which media types you will use and why. List the specific media vehicles for each type. A media vehicle is the specific communication tool. For instance if magazine is the media type, then Sports Illustrated or Cosmopolitan is the media vehicle; if TV is the media type then Food Network or “Bones” is the vehicle (it can be a cable network or a network program).

Step 5c – media schedule

How will you schedule your media? (continuous, pulsing, flighting)? Explain how your budget will help you make this decision.

Step 6 -- IMC – integrating your ad with the rest of the promotional tools

Identify and discuss other, non-advertising promotions you will use to coordinate with this ad campaign. Are there personal selling, sales promotions/incentives, public relations and/or social media efforts you’d like to include?

Step 7 – Evaluating your campaign

This is maybe one of the most important steps. How will you evaluate the effectiveness of your campaign? How will you know if it “worked?” How will you know if you should repeat the campaign, or completely revamp it?

Perdue Company purchased equipment on April 1 for $89,640. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,700. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method

Year 1 $

Year 2 $

Year 3 $

Year 4 $

b. Units-of-output method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

c. Double-declining-balance method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $49,950. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,350. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $ Year 2 $ Year 3 $ Year 4 $ b. Units-of-activity method Year Amount Year 1 $ Year 2 $ Year 3 $ Year 4 $ c. Double-declining-balance method Year Amount Year 1 $ Year 2 $ Year 3 $ Year 4 $

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $97,470. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,970. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4.

Required:

Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method

b. Units-of-output method

c. Double-declining-balance method