A machine costs Php 400,000 with a salvage value of 200,000. Life of it is six years. In the first year, 4000 hours. In the second year, 6000 hours and 8000 hours in the third year. The expected flow of the machine is 38000 hours in six years. What is the depreciation at the end of the second year?

Q: Darnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost behavior oflabor…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Gabrielle has the following gains and losses for the current year: Short-term capital loss $(8,000)…

A: Given: - Short-term capital loss=$8,000 Long-term capital gain=$5,000

Q: Accounting AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before…

A: A partnership is a legally binding agreement between two or more persons to manage and run a…

Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…

A: This is question of Profit maximising product mix where one of the resource of the production is…

Q: em 3 aurnalize the following transactions: cash at $12 per share. Journal entry: Journal entry: 3.…

A: Issue of Shares: Shares that have been issued are those that the owners have elected to sell in…

Q: A fire destroyed Jimmy's Teeshirt Shop. The business had an adjusted basis of $500,000 and a fair…

A: In the case of reporting gain or loss related to damage of insured property, the issue of recording…

Q: tax liabilit

A: Tax liability refers to the amount which is charged on the income of an individual, company, etc.…

Q: 30. Julian Tan owns a store specializing in rare trinkets which is her only source of income. She…

A: When the gross sales exceed P3000000 then the tax is payable at the regular rate.  The regular rate…

Q: On June 30, 2020, Ivanhoe Company issued $4,420,000 face value of 15%, 20-year bonds at $5,417,560,…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: Which of the following is an example of a variable cost? a.Insurance on the production equipment…

A: Variable cost are those cost which changes according to the level of Production. In other words in…

Q: Jose receives a commission of 2.4% on his monthly sales up to $3,100. The rate then increases to…

A: Lets understand the basics. For calculating commission on sales, we need to use below formula.…

Q: curred in the purchase, resul % every June 30 and Decembe t year-end are presented belov 99

A: Transaction costs or the bond issue costs are the expenses that are incurred by the company for…

Q: QUESTION 6. Plants Ltd operates garden centres but would like to raise some finance to fund their…

A: Dividend is the distribution of profit amongst the shareholders. Financing is required for the…

Q: Funnel Manufacturing Company has provided the follwoing information: Month Budgeted Sales January $…

A: The question is based on the concept of Cost Accounting. Purchases can be calculated by adding the…

Q: Coverage was 100/300/50. What was the total injury liability coverage in this accident? O $40,000 O…

A: Introduction:- The following basic information as follows under:- Last month some of your friends…

Q: The clinic’s relevant range of activity would best be measured in terms of:

A: Option A is the correct answer. The clinic’s relevant range of activity would best be measured in…

Q: A fumiture salesperson can sell 60 pieces of furniture over an entire year. To hold onto the…

A: Inventory refers to raw material that helps in producing finished goods or company use it as a goods…

Q: Management accounting and financial accounting differ in that management accounting information is…

A: Management accounting and financial accounting are very much similar and differ mainly in two…

Q: Accounting Sandhill Company, a machinery dealer, leased a machine to Dexter Corporation on January…

A: Lease: - A lease is an agreement between two parties i.e., a lessor and a lessee. Lessor allows…

Q: Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair…

A: Selling price means the rate at which the goods are sold or services are provided by the…

Q: The Green Valley Restaurant has three operating departments: Café, Bar, and Catering. The new…

A: The question is related to Cost Volume Profit Analysis. The Weighted Average Contribution Margin…

Q: Damon Corporation, a sports equipment manufacturer, has a machine currently in use that was…

A: NOTE: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: A fumiture salesperson can sell 60 pieces of furniture over an entire year. To hold onto the…

A: the minimum inventory cost at the cost that is to be incurred irrespective of the level of inventory…

Q: Sandhill Medical manufactures hospital beds and other institutional furniture. The company’s…

A: Leverage ratios are used to measure the proportional degree of debt incurred by a corporation. These…

Q: Exercise E Analysis of Hair Care Company's citrus hair conditioner reveals that it is losing $5,000…

A: The gap between revenues and expenses is referred to as net income. This number, together with gross…

Q: Jerilu Markets has a beta of 1.05. The risk-free rate of return is 2.64 percent and the market rate…

A: Introduction:- Risk  premium is the excess return over the guaranteed rate of return. It is more…

Q: Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects…

A: The cost of a company's or manufacturer's promise to fix or replace a product if it fails to perform…

Q: le

A: Formula:  Current ratio = Current assets / Current liabilities Working capital = Current assets -…

Q: Quorum Ltd owns and operates an item of machinery. At 1 October 2019 the machinery had a carrying…

A: Impairment of asset represents the reduction of the carrying value of the asset with respect to its…

Q: A contract of sale is distinct from other types of contracts because it has two additional…

A: A contract of sale differs from other types of contracts in that the buyer and seller agree to a…

Q: rchase ay interest of 10% every June 30 and December 31 ue of the bonds at year-end are presented…

A: Transaction costs or the bond issue costs are the expenses that are incurred by the company for…

Q: Independence Co. budgeted $576,760 manufacturing direct wages, 2,554 direct labor hours and had the…

A: Activity based costing is one of the cost accounting system, under which all indirect costs and…

Q: Debit Credit Account Tittle Acc No Cosh in Bank Accants Receivalle Urused Laundry Supplies Prepad…

A: At the end of the accounting period, the closing entries are used to close the temporary accounts.…

Q: Zack Ltd makes and sells one product, the standard production cost of which is as follows for one…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The following computer print-out was generated using the least squares method for use in estimating…

A: Solution..     The costs equation will be given by  Y = a + b X  Where Y = total costs  a = fixed…

Q: Which of the following can be income deferral transactions? I. Sale of municipal bonds II.…

A: Answer: Only statement II is correct. So, correct option is b.

Q: ML has the following data. What is the firm's cash conversion cycle? Inventory conversion period =…

A: The cash conversion cycle can be calculated by adding up the inventory conversion period, average…

Q: ates Form W-2 on an annual basis to let the employer kn d during the year. Form W-2 to supply…

A: The answer has been mentioned below.

Q: If the market rate of interest is 10%, a $15000, 11%, 10-year bond that pays interest annually would…

A: Bonds are financial products in which an investor lends money to a company or government for a…

Q: MIKE restaurant sold a fast food restaurant franchise to Irish. The sale agreement, signed in…

A: How much is the Franchise Revenue for : 2020 = P 184,505 How much is the Continuing Franchise Fee…

Q: Ruiz Company provides the following budgeted sales for the next four months. The company wants to…

A: The production budget is prepared to estimate the number of units to be produced during the period.

Q: Instructions: Prepare a statement of cash flows for the year ended December 31, Problem 2 KEXLER…

A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Q: Suppose the common stock of United Industries has a beta of 1.09 and an expected return of 13.9…

A: Introduction: When it comes to the stock market, investors need to understand every term and phrase.…

Q: GreenGo Company leased equipment to RedStop Company on May 1, 2020. The lease expires on May 1,…

A: Lease expenses It is the  rental costs of the Company and its Subsidiaries during such period under…

Q: Which of the following is not a benefit of record keeping?

A: The answers for the multiple choice questions and relevant explanation are presented hereunder : One…

Q: Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets…

A: Solution...     Standard cost of supplies  = $540 per month + $103 per job + $34 per meal  = $540 +…

Q: A company’s share capital consists of 2,800,000 ordinary shares of 25 pence each. During its last…

A: Dividend yield is one of the ratio which is used for calculating and analysing how much dividends…

Q: Calculate the variable overhead spending variance for Job Alpha g. Calculate the variable…

A:

Q: EX 11-20 Accrued product warranty OBJ. 5 Logan Manufacturing Co. warrants its products for one year.…

A: A journal entry is the act of keeping records of any transaction either economic or non economic.…

Q: E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.