Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function and the Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the optimum time. Year 1 2 3 4 5 6 $ $ $ $ LA $ tA $ tA Depreciation $ $ $ $ $ +A Book Value
Q: You are working as a project manager of a construction company. Due to the economic impact, your…
A: The ratios used to express the arithmetical relationship of accounting figures are known accounting…
Q: Make accounting entries for following perpetual inventory transaction Nov3,2019 sold inventory on…
A: In the given case, the inventory is sold on credit. In case of perpetual inventory transaction, cost…
Q: On April 1, 2020, C'est Cheese issues 20,000 shares of 4%, $10 par, cumulative preferred stock $15…
A: Units of Activity Method The depreciation expense is determined by the asset's actual operational…
Q: lue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…
A: The overgead expenses are those expenses that are incurred to run the business but the overhead…
Q: Salmone Company reported the following purchases and sales for its only product. Salmone uses a…
A: Inventory is valued on the basis of different inventory valuation methods such as LIFO, FIFO, or…
Q: Question 5 Emma Co manufactures electric motors. The company expects to sell 440 units in June and…
A: Manufacturing Overheads are indirectly incurred cost which could not be directly traced to…
Q: Integrity Company leased equipment to a lessee on July 1, 2021. The lease is for 8 years. The first…
A: Annual Payments: P900,000 Number of lease years: 8 years Implicit interest rate: 10% Interest…
Q: [The following information applies to the questions displayed below.] Hickory Company manufactures…
A: Particulars Amount Machining overhead $213,400 Machine setups overhead $61,600 Product design…
Q: 3 FYE Dec Cash & Cash Equivalents 5 Loans Held For Sale - Other 6 Loans Held for Sale Allowance for…
A: According to the given question, we are going to determine the total current asset for capital from…
Q: Under the Corporate form of business: the corporation is subject to double taxation a shareholder…
A: Corporate form of business: A mode of doing business that recognizes the company in question as…
Q: [B] Witham tendered successfully for the supply of coal to the Great Northern over a period on one…
A: Witham is free from the tender's obligation on 19th June, i.e. 2 weeks from the date of the receipt…
Q: Exercise 11-6 (Algo) Stock issuance for noncash assets LO P1 Sudoku Company issues 30,000 shares of…
A: Issue of common stock in excess of par value will takes place when the total assets received on…
Q: Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing…
A: Introduction: In the manufacturing industry, setup cost is the cost of preparing equipment to…
Q: XYZ Corporation has a lower and an upper limit for its savings account at P40,000 and P70,000…
A: Additional funds refers to the concept where the business or person looks to expand the operations…
Q: What is the difference of segment reporting and operating segments? Are they interrelated? Please…
A: Introduction: The inclusion of a company's current segments in the disclosures that accompany its…
Q: INTEGRITY, Inc. consigned 1,000 units of ordinary printer, costing P700 each to PUP Co. to be sold…
A: Net income is calculated by deducting all expenses related to consignment from sales and adding…
Q: Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid…
A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. It…
Q: )Farmers World, a firm specializing in fertilizers, is evaluating a proposal to relax the credit…
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A telephone system, inclusive of PBX, handsets, and automatic re-diallers was purchased on January…
A: Cost of assets include purchase cost, installation cost , commission cost and other direct cost…
Q: Explain the 3 important types of Inventories
A: Explain the 3 important types of Inventories. 1. Direct raw material inventory 2. Work-in-progress…
Q: An inexperienced accountant for Bramble Corp. showed the following in the income statement: net…
A: The income statement is prepared to record the revenues and expenses of the current period. The net…
Q: on 1 enny's direct material cost is $5 per unit. The direct labor rate is $19 per hour and each…
A: The cost of goods sold is, essentially, the cost that is incurred to produce the goods sold. These…
Q: A corporation purchases 9,515 shares of its own $10 par common stock for $18 per share, recording it…
A: When a corporation purchases its own shares, those reacquired shares are called Treasury shares.…
Q: A company bought land one year prior to start-up for 100,000$. Total capital investment spent at the…
A: Price is that amount which is paid to buy any product or service. In another word, the price is the…
Q: OT Company y D decides to factor $60 its accounts receivables with recourse. The factoring company…
A: The accounts receivables means the amount that received in future. The accounts receivables arises…
Q: Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or…
A: Cost Classification :— Cost Classification means Involves the seperation of a group expenses into…
Q: The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account,…
A: The direct costs incurred are debited to work in process account. The indirect costs are debited to…
Q: Jan5, 2018 business bought $2250 of inventory from penny inc money will be paid in future
A: The journal entries are prepared to record the transactions in debit and credit form. If one account…
Q: Say the Fed wants to increase the money supply in the country. Which of the following open market…
A: The Fed can influence the money supply by modifying reserves requirement which generally refers to…
Q: Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The…
A: Cash Flow From Operating Activities :— It shows the amount of cash and cash equivalents generates…
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: Total procurement activity cost = $368,000 Total number of purchase orders = 4,150 + 2,400 + 11,500…
Q: DO IT! 5-1 Helena Company reports the following total costs at two levels of production. 5,000 Units…
A: Introduction: Costs are the monetary value of spending for supplies, services, people, products,…
Q: In 2021, Avi, a single taxpayer, had taxable income of $110,000. This amount included short-term…
A: Answer : Option $14,000 is correct answer. Capital losses = We can not set off Capital losses with…
Q: Make accounting entries for following perpetual inventory transaction Nov1,2019 business owner Sam…
A: The journal is the first step of recording the business transactions. The transactions are recorded…
Q: Gurriel Corporation manufactures and sells laptop computers and uses standard costing. For the month…
A: Net income is the amount of income earned by an entity after deducting the expense from the revenue.…
Q: Rustco Ltd have developed a new paint to help prevent corrosion and are marketing it for use on the…
A: (1) Note, 1 litre =1000 ml Standard mix quantity = Actual quantity of material…
Q: acquiree's net assets is more than the original equity market value because of the value of control.
A: During the acquisition the company will pay either more money to acquire net asset i.e goodwill Or…
Q: 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2.…
A: Mixed Cost refer to those costs which are variable as well as fixed in nature. Contribution is the…
Q: Journalize Payroll Tax The payroll register of Chen Engineering Co. indicates $1,956 of social…
A: 1. Gross salary = $32,600 2. Federal unemployment Tax = $10,100 x 0.6%=$60.60 3. State unemployment…
Q: Alejandro Kirk
A: The main advantage of using the ABC method is its impact on profitability, it helps in improving…
Q: Burrito Corporation has a defined benefit pension plan. Burrito received the following information…
A: Pension refers to a fund that is paid to the employees at the time of retirement funded by the…
Q: The bulk of her net worth is an accumulation of savings as well as the value of persona property,…
A: The debt to equity ratio is the ratio that is used to describe the relationship between the debt and…
Q: Dior, Christian and Jovani have capital balances of P240,000, P400,000 and P144,000, respectively…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: an invstment project with no residual value has a net present value of $87,980when it is discounted…
A: Internal Rate of Return - The internal rate of return is defined as the discount rate that equals…
Q: During the current year ended December 31, clients paid fees in advance for accounting services…
A: Unearned Service Revenue :— It is revenue that is not accrued but cash for the revenue is received…
Q: Bandar Industries manufactures sporting equipment. One of the company's products is a football…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variance…
Q: Develop a table showing the depreciation and book value for each year using both the Excel® DDB…
A: Depreciation is the diminishing in value of the asset over the period of time due to usage in…
Q: Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. If the…
A: Introduction: Bonds payable are recorded when a company issues bonds to make income. Because it is a…
Q: global accounting standards are compelling. High quality standards by companies throughout the world…
A: 1. Different Types of Accounting Standards There are different standards that are applicable in…
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2,…
A: The fixed assets if the business include land, building, etc. The costs incurred such as demolish of…
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.
Step by step
Solved in 3 steps
- Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for$60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30,000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating costs are expected to be $4,000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for$60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30,000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating costs are expected to be $4,000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for $60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30, 000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating cost is expected to be $4, 000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…
- A Corporation manages the back office functions of private medical practices. The company is analyzing a project to digitize the collection of medical records. Last year, the company spent $400,000 during a pilot project to prove that the digitization project was a viable idea, and now the company is evaluating whether to invest in it. Acquiring the necessary computer hardware and software to implement the project will cost $10,000,000. In addition, successful implementation will require the corporation to spend $1,300,000 to install and customize the software, plus $700,000 to purchase hand-held digital devices that medical staff will use to record medical data. Corporation will depreciate the system over 4 years to a net book value of zero. The corp expects an immediate increase in its Accounts Receivable balance of $200,000 as a result of the project. Because the purchases of paper forms and files will decline, the company also expects an immediate decrease in Accounts Payable of…The hospital where you are employed is continuing with their analysis with the goal of opening a walk-in clinic. After conducting additional research, the financial projections for the first year of operations are as follows: Revenues (from 10,000 visits): $400,000 Wages and benefits: $220,000 Rent: $5,000 Depreciation: $30,000 Utilities: $2,500 Medical supplies: $50,000 Administrative supplies: $10,000 Assume that all costs are fixed except supply costs, which are variable. Assume that the clinic will be required to pay taxes at a 30% tax rate. Respond to the following questions. Be sure to show your work for all calculations. Prepare the clinic’s projected Profit and Loss (P&L) Statement. (8 points) What number of visits is required to break even? (3 points) What number of visits is required to provide you with an after-tax profit of $100,000? (4 points)In September 2015, a 3.45 megawatt cooling,heating, and power (CHP) system was placed in intooperation for Southeast Regional Hospital with 360beds. The CHP system was part of a new 20,000 sq.ft. central utility plant that provided the 800,000 sq. ft.health-care facility with cooling, heating and power.By centralizing all of the utilities in one location, thehospital accrued significant energy savings, as wellas improved maintenance efficiency. The financialfacts related to the project are summarized as• Installed cost: $2.5 million• Annual energy cost savings: $786,000• Annual O&M costs: $233,000• Project service life: 15 years• Salvage value: $200,000At an interest rate of 8%, what is the net savings perdollar invested?
- Alva Community Hospital has five laboratory technicians who are responsible for doing a seriesof standard blood tests. Each technician is paid a salary of $30,000. The lab facility representsa recent addition to the hospital and cost $300,000. It is expected to last 20 years. Equipmentused for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries,facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and othersupplies. This $200,000 is enough for 200,000 blood tests.Required:Assuming that the driver (measure of output) for each type of cost is the number of blood testsrun, classify the costs by completing the following table. Put an X in the appropriate box forvariable cost, discretionary fixed cost, or committed fixed cost.Rio Grande Medical Center is needing to expand their HIM department. In order to move forward with the renovation and gain the needed square footage, all old records in storage will need to be archived. After researching the archival process, it is determined the archiving will be done via microfilm with a budget of $300,000 over a two-year period. You have contracted with a company to perform the microfilm services at $0.07 per page and have estimated that there are about 4.5 million pages to be converted. At the end of the first year, you review the invoice and see that you have been billed for converting 2,083,333 pages. Determine your budget variance and what type it is. Provide a short explanation that can be given to administration regarding the variance.An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $65,000. The buy alternative requires contracting the assembly operation externally at a cost of $6,000 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? cameras must be assembled per year to justify the make alternative.
- The hospital is considering the purchase of imaging equipment worth $25,000 to improve its visual capture results, and improve outcomes. The operating costs will be reduced by $7,000 per year. The computer has an estimated life expectancy of 5 years, and an estimated salvage value of $5,000. What is the profitability index if the discount rate is 8%. Ignore reimbursement considerations.In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner has a useful life of 5 years with no residual value. It is depreciated using the straight line method and its annual operating costs are $ 120,000. In 2019 the hospital is approached by another supplier to purchase a more modern machine for $ 115,000. This new machine has a life span of 4 years and will save $ 25,000 in annual operating costs. The new supplier is willing to buy the old scanner for $ 30,000. Required: a) Compute the gain or loss if the old scanner is replaced in 2019. b) Advise the hospital on the purchase of the new scanner.In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner has a useful life of 5 years with no residual value. It is depreciated using the straight line method and its annual operating costs are $ 120,000. In 2019 the hospital is approached by another supplier to purchase a more modern machine for $ 115,000. This new machine has a life span of 4 years and will save $ 25,000 in annual operating costs. The new supplier is willing to buy the old scanner for $ 30,000. Required: Compute the gain or loss if the old scanner is replaced in 2019. 2. Advise the hospital on the purchase of the new scanner.