A device costs $20,000. After 7 years, it is expected to be worth $6,000. Using the SL method, find the annual depreciation amount. $14,000 $1,085 $2,000 $3,714
Q: Differentiate between a profit center and an investment center
A: Profit center is a responsibility center where the manager is responsible for both revenue and costs…
Q: The cost of direct materials transferred into the Rolling Department of Kraus Company is $393,600.…
A: The actual objects that are constructed into a product are referred to as direct materials. A…
Q: Illustrative Problem 1: Mr. Jackson Mob opened his business, "LabanderaMOh" Laundry service in the…
A: Journal entry is the first step to record transaction in the books of account. Journal Entries are…
Q: X corporation produces a decorative pillow. In 2020, it produced 2,000 units a 1,750 at an average…
A: The income statement can be prepared using various methods as variable costing and absorption…
Q: 3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000.…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: rovide another example of a cost center and explain why you choose that example.
A: Cost center is a department or function within an organization that does not directly add to profit…
Q: Snyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92…
A: Absorption costing allocates fixed overhead costs across all units produced for the period. Variable…
Q: . If the coefficient of correlation for machine hours is higher than the coefficient of correlation…
A: The coefficient of correlation is a measure that calculates the relationship between two variables.…
Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…
A: Formula: Accounting equation: Assets = Liabilities + Owners equity
Q: Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for…
A: The uncollectible account expense for the year includes uncollectible provisions made during the…
Q: A firm buys merchandise at P20 per unit and sells them at P30 per unit Foxed costs are at P15,000.…
A: Profit is the amount remaining after deducting cost of goods sold from revenue. Given that, Cost of…
Q: Acquisition is the purchase of all or a portion of a corporate asset or target company.
A: The company that acquires the asset or shares of the company is called the parent company. Whereas,…
Q: Question# 1 Describe the directional effect (increase, decrease, or no effect) of each transaction…
A: The common stockholder’s equity represents the assets left after paying all the liabilities. The…
Q: jos= dition esolutory
A: The answers have been mentioned below.
Q: Absorption and Variable Costing with Over- and Underapplied Overhead Flaherty, Inc., has just…
A: An income report is a statement that details a company's revenue and expenses. It also shows if a…
Q: 11-2, LO 11-4] North Wind Aviation received its charter during January authorizing the following…
A: Additional paid in capital, preferred stock = 11000 shares×($17-$10)+ 1100 shares×($17-$10)…
Q: Other changes may affect comparability but not consistency in the use of accounting principles and…
A: The question is related to Auditing. Accounting Principles are specific guidelines and principles…
Q: Dec 31 Purchased new equipment for P750,000, paying P150,000 cash and signing a 3-year, 7% note for…
A: Warranty expense refers to the expenses which is to be incurred by a business entity in case their…
Q: During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced…
A: The underapplied overhead cost is added to cost of goods sold. The cost per unit is calculated as…
Q: How is total compensation calculated? O a. salary + bonus - fringe benefits Ob. salary OC. salary+…
A: Compensation: Compensation of workers is defined as the entire amount of payment, whether in cash or…
Q: Selected accounts of X Company after adjusting entries appearing in the trial balance are shown…
A: Trail balance is the balance of all ledger accounts that are compiled into debit and credit account…
Q: On 1 July 2021, Mozart Ltd purchased three machines each used in a different production process in…
A: *As per the bartleby guidelines in case of different queestions answer first only Calculation of…
Q: The following are the financial statement Quick Ltd. for the year ended 31st December 2020:…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: _____ 1. If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan…
A: When we take decision by using marginal costing , we…
Q: Selected ratios for the current year for three companies in the office furniture industry follow:…
A: GIVEN Based on the above ratios which company do investors favour for future growth and investment…
Q: Information is immaterial if omitting it or misstating it could influence decisions that users make…
A: Materiality is determined by considering both quantitative and qualitative factors.
Q: Which of the following accounts will be affected by the adjusting entries? Only nominal accounts…
A: Example of adjusting entry: Debit: Supplies expense (Nominal account) Credit: Supplies (Real…
Q: Illustrative Problem 1: Mr. Jackson Mob opened his business, "LabanderaMOh" Laundry service in the…
A: The financial statements of the business includes the income statement and balance sheet, which are…
Q: n January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as…
A: Solution: Under specific interest method, interest is capitalized firstly till the amount of…
Q: Based on the following information provwded by Max Trading Company on December 31, 200C, the end of…
A: Gross profit is calculated by subtracting the Total cost of goods sold from the Net sales. Gross…
Q: Babuca Corporation has provided the following production and total cost data for two levels of…
A: Cost of manufacture is the amount of the product produced in the manufacturing unit that includes…
Q: High Step Shoes had annual revenues of $197,000, expenses of $109,700, and dividends of $22,800…
A: A journal entry is used to record a commercial transaction in the accounting records of a…
Q: When the boards of directors of the potential combining companies negotiate mutually agreeable terms…
A: An unfriendly or hostile merger occurs when the management does not agrees but the shareholders do…
Q: P Co. issued 6,000 shares of its common stock, valued at $300,000, to the former shareholders of S…
A: Basic accounting concept of issue of shares
Q: Indicate whether the accounts below are used in the cost flow for a manufacturer, a service…
A: Services provided is an individual or entity that provides services to the consumer. Whereas,…
Q: Required information [The following information applies to the questions displayed below.] In 2021,…
A: Maximum charity deduction of 10% of income less ordinary deduction (before deduction of the…
Q: Question 42 Based on the following adjusted trial balance of Lyndon Company on December 31, 200C,…
A: The owner's equity comprises of investment, retained earnings, net income, losses or withdrawal…
Q: Lina Company purchased equipment on January 1, 2022 for P5,000,000. The equipment had a useful life…
A: Solution... Depreciation rate using double Declining method = 200% ÷ life = 200% ÷ 5 = 40%…
Q: Loss on disposal of a non-current asset is a cash outflow. Select one: True False
A: The correct answer is FALSE.
Q: Using the straight-line depreciation method, calculate the book value as of December 31, 20--.
A: Calculations didn't appear in decimal. So, there was no need to round answer to two decimal places .…
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: For the year ending December 31, 2022, Sheridan Inc. reports net income $147,000 and cash dividends…
A: Formula: Ending retained earnings = Beginning retained earnings + Net income - dividends paid
Q: Sales unit volume 2,800 2,000 a. Prepare a contribution margin by product report. Compute the…
A: Contribution margin is computed by deducting the variable cost of sales from the sales value.the…
Q: Compute the PI statistic for Project Z if the appropriate cost of capital is 8 percent. (Do not…
A: The profitability index (PI) is used as a measure for ascertaining the attractiveness of an…
Q: A company purchased a machine for 0.54 X in 2020, which is expected to have: - A useful life of 10…
A: GIVEN A useful life of 10 years Salvage value of 0.05 X Production of X units Number of working…
Q: (A machine with a purchase value of $850 t life of the machine is 7 years, calculate the of the…
A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the…
Q: On March 1 of the current year. Dexter Cormpany acquired a machine costing P 650,000 with an…
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: The IASB is the international counterpart to the IFRS. * True False
A: International Financial Reporting Standards (IFRS): These include a set of rules and guidelines that…
Q: general fund uses the consumption method to record invento ventories are $10,000, purchases are…
A: The consumption method refers to the type of inventory method under which the purchases transactions…
Q: Genel Company provided the following schedule of machinery: Total Cost Residual Value Useful Life…
A: Composite Life of the assets indicating the average life expectancy of a group of assets based on…
A device costs $20,000. After 7 years, it is expected to be worth $6,000. Using the SL method, find the annual
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, 4,000
- Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given here. The company’s cost of capital is 10%. Should the firm operate the truck until the end of its 5-year physical life? If not, then what is its optimal economic life? Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?