e. Eleanor's business accountant suggests using a reducing balance model ofdepreciation for the kebab fryer. He is suggesting that the fryer depreciates at a rateof 1.2% per month. Write down a recurrence relationship, in terms of Fn, that modelsthe value of Eleanor's kebab fryer after n months.f. Write a rule to model the reducing balance depreciation of the fryer.g. Using the reducing balance method, find the value of the fryer after 9 years.10²4h. Which method of depreciation (unit cost or reducing balance) should Eleanor chooseand why?

Answered: Image /qna-images/answer/7d439bf7-e733-452c-a2a2-02237a5facf2.jpg

Answered: e. Eleanor's business accountant…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

See similar textbooks

Similar questions

A machine with a cost of $75,000 has an estimated residual value of $5000 and an estimated life before his years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining balance method?
Suppose a new car is purchased for $41,357 and depreciates by 21% over the first year of ownership. Find the depreciation of the car over the first year. $… If the car is driven 12,870 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Round your answer to the nearest cent.) …? Dollars per 100 miles
White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving? B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?
Suppose a new car is purchased for $45,357 and depreciates by 21% over the first year of ownership. If the car is driven 12,470 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Enter a number. Round your answer to the nearest cent.) dollars per 100 miles)
In this week we are discussing the different types of depreciation methods; straight line and double declining balance. Let's put some numbers to the scenario of switching from straight line to double declining; Company ABC has a new asset for $100,000, salvage value of $0 and a useful life of 10 years, assume the purchase date was January 1st so a full year of depreciation would be taken at December 31st. Knowing this information what would the straight line amount of depreciation calculate to and what would the double declining method amount to for the first 5 years?
Suppose a new car is purchased for $45,357 and depreciates by 21% over the first year of ownership. If the car is driven 12,870 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Enter a number. Round your answer to the nearest cent.)
Shirley is studying depreciation in her engineering management course. The instructor asked her to graphically compare the total percent of first costdepreciated for an asset costing B dollars over a life of n = 5 years for DDB and 125% DB depreciation. Help her by developing the plots of percent of B depreciated versus years. Use a spreadsheet unless instructed otherwise.
The managers of Navy Ltd are considering the depreciation policy for its non-current assets. The non-current assets cost £1,500,000, have an estimated useful life of 3 years and a residual value of £300,000. The accountant is suggesting a straight-line method of depreciation, but the managing director is suggesting a reducing balance method at a rate of 20%. Part a Calculate the depreciation expense for the first year of trading using each of the 2 depreciation policies suggested by the accountant and the managing director respectively. Part b Managers of companies have to make accounting policy choices (such as the depreciation policy), estimates, and assumptions when preparing the financial statements. These choices may affect asset and liability measurements and the resulting measurement of profit. Briefly explain what incentives might influence managers to make misleading policy choices and the factors that should be taken into consideration when deciding the depreciation policy.
A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $4,000 and a 10-year depreciable life. The estimated SV of the saw is zero at the end of 10 years. Determine the annual depreciation amounts using Declining Balance Method when DB is 150% Tabulate the annual depreciation amounts and the book value of the saw at the end of each year.
A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?
Penny and Daughter’s construction business is considering purchasing a new Bobcat. The equipment will cost $230,000 and is expected to last 14 years. The Bobcat has a salvage vale of $16,000. Calculate the depreciation AND book value for each year. You can create one table for a-d or you can create different tables for each. This problem will need to be done in excel. (30 points)a. Use straight-line depreciation. (5 points)b. Use declining-balance depreciation with a depreciation rate that ensures the book value equals the salvage vale in the last year of the life of the equipment. c. Use double declining balance depreciation. d. Use MACRS depreciation where the Bobcat is considered a 10 year property. e. Graph the Book values of each methods on a single graph. The graph should have points at each year for each BV and a line of each method. You will have 4 lines on your graph. You should include year 0 on your graph so that all four lines start at the same point. Each method should be…
kelly’s Fitness Center purchased a new step machine for $16,500. The apparatus is expected to last four years and have a residual value of $1,500. What will the depreciation expense be for the FIRST YEAR under: (a) the straight-line method? (b) the double declining-balance method (c) the production method (estimated useful hours is 10, 000 hours and was used for 2,400 hours in the first year). (d) If the asset was disposed of at the end of the year for $10,000, what would the gain or loss under each method?

SEE MORE QUESTIONS

Recommended textbooks for you

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS