The cost of a piece of equipment is $80,000; it has a 5 year life, and an estimated salvage value of $5,000.

Required:
a. What is the amount of depreciation expense for the first full year the company owns the equipment if the company adopts the straight-line method?
b. What is the journal entry the company would make to record depreciation expense?
c. What is the book value of the equipment after it has been owned for 1 full year (hint use part a)?
d. What is the amount of depreciation for the first year if the company did not purchase the equipment until July 1st and uses the straight-line method?
e. What is the book value of the equipment after it has been owned for 1/2 years?

Answers

Answer 1

Answer:

a. What is the amount of depreciation expense for the first full year the company owns the equipment if the company adopts the straight-line method?

depreciable value = $80,000 - $5,000 = $75,000

depreciation expense per year = $75,000 / 5 years = $15,000

b. What is the journal entry the company would make to record depreciation expense?

December 31, 202x, depreciation expense

Dr Depreciation expense 15,000

    Cr Accumulated depreciation - equipment 15,000

c. What is the book value of the equipment after it has been owned for 1 full year (hint use part a)?

book value = purchase price - accumulated depreciation = $80,000 - $15,000 = $65,000

d. What is the amount of depreciation for the first year if the company did not purchase the equipment until July 1st and uses the straight-line method?

depreciation expense = $15,000 x 1/2 = $7,500

e. What is the book value of the equipment after it has been owned for 1/2 years?

book value = $80,000 - $7,500 = $72,500


Related Questions

On November 1, 2018, Sandra Company borrowed $200,000 cash on a 1-year, 6% note payable that requires Sandra Company to pay both principal and interest on October 31, 2019. Given no prior adjusting entries have been recorded, the adjusting journal entry on December 31, 2018, Sandra Company's year-end, would include a:___________.

Answers

Answer:

Credit to Interest Payable of $2,000

Explanation:

Preparation of the adjusting journal entry on December 31, 2018 for Sandra Company's year-end

In a situation where the interest amount has already been accrued but has not yet been paid we going to debit the Interest Expense with amount of $2,000 and credit Interest Payable with the amount of $2,000 which means that

the interest expense amount that has accrued for both the month of November and December 2018 will be calculated as :

Accrued Interest Expense=$200,000 × 0.06 × 2 / 12

Accrued Interest Expense= $2,000

Therefore the the adjusting journal entry on December 31, 2018, Sandra Company's year-end, would include a: CREDIT to Interest Payable of $2,000

California Company uses a predetermined overhead rate based on machine hours to apply overhead. The company has the following estimated costs for next year:

Direct materials: 10,000
Direct labour: 30,000
Sales commissions: 40,000
Salary of production supervisor: 20,000
Indirect materials: 4000
Advertising expense: 8000
Rent on factory equipment: 10000

California Company estimates that 10,000 machine hours will be worked during the year. The predetermined overhead rate per machine hour will be:__________

Answers

Answer:

$3.40 Per Machine Hour

Explanation:

The computation of the predetermined overhead rate is shown below:

As we know that

Predetermined overhead rate is

= Estimated manufacturing overhead ÷ estimated machine hours

where,

Estiamted Manuafctuing overheads is

= Salary of Prodcution Supervisior + Indirect Material + rent on Factory Equipment

= $20,00 + $4,000 + $10,000

= $34,000

And, the estimated machine hours is 10,000

So, the predetermined overhead rate is

= $34,000 ÷ 10,000

= $3.40 Per Machine Hour

The risk-free rate of interest is 7% per annum with continuous compounding, and the dividend yield on a stock index is 3.2% per annum. The current value of the index is 150. What is the six-month futures price?

Answers

Answer:

The six-month futures price is $152.88

Explanation:

Asset Price Sо = $150

Time T= 6/12 = 0.5

Risk free interest rate = 7%

Dividend yield = 3.2%

Fо = Sо e^(r-q)*r

Fо = $150 e^(0.07-0.032)0.07

Fо = $150 e^(0.038)0.07

Fо = $150 e^(0.019)

Fо = $152.8772

Fо = $152.88

Zander buys $1,000 in U.S. Treasury bonds and spends $1,200 on new tires, which are produced domestically, for his car. How much is added to the U.S. GDP because of this?

Answers

Answer:

Amount added in GDP = $2200.

Explanation:

Given:

Spend on treasury bond = $1,000

Spend on tires = $1,200

Find:

Amount added in GDP

Computation:

Amount added in GDP = Consumption + investment

Amount added in GDP = $1200+$1000

Amount added in GDP = $2200

The balance sheet for Kingbird, Inc. shows the following: total paid-in capital and retained earnings $860,000, total stockholders’ equity $788,400, common stock issued 42,000 shares, and common stock outstanding 36,000 shares.

Required:
Compute the book value per share.

Answers

Answer:

$21.9 per share

Explanation:

Book value per share = Total stockholders’ equity/Common stock outstanding

Book value per share = $788,400 / 36,000

Book value per share = $21.9 per share

what is business marketing?

Answers

Answer:

Business marketing

Business marketing is a marketing practice of individuals or organizations. It allows them to sell products or services to other companies or organizations that resell them, use them in their products or services or use them to support their works. It is a way to promote business and improve profit too.

Answer:

yes

Explanation:

Business marketing is a marketing practice of individuals or organizations. It allows them to sell products or services to other companies or organizations that resell them, use them in their products or services or use them to support their works. It is a way to promote business and improve profit too.

During the heavy Christmas shopping season, sales of retail stores, online sales firms, and other merchants rise significantly. a. What would you expect to happen to the market for money during the Christmas season

Answers

The money demand curve shifts to the right, as people demand more money for transactions purposes. According to graph 1.1, the demand for money will increase during the festive (Christmas) season.

MD would shift right, MS would remain unchanged and nominal int rates would rise

During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must increase the money supply, which will put downward pressure on nominal interest rates.

During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will:

increase.

What distinguishes the true ribs from the false ribs from the floating ribs? What functional advantage is provided by these three types of ribs, i.e., why have three types?

Answers

Answer:

Explanation:

For these ribs, the costal cartilage of each attaches to the cartilage of the next higher rib. The last false ribs (11–12) are also called floating (vertebral) ribs, because these ribs do not attach to the sternum at all.

Let understand that the main function of the Ribs is to aid respiration. The rib also serves as a cage to protect vital organ such as Lungs, Heart.

The ribs structure is characterized with 12 thoracic vertebrae.

The true ribs are the number 1 to 7 of the thoracic vertebrae, the false ribs are the number 8 to 12 of the thoracic vertebrae and the floating ribs are the number 11 to 12 of the thoracic vertebrae.

In conclusion, what distinguish the true ribs from others is that the first seven ribs are connected directly to the sternum which is located at the middle of the chest while the false ribs are linked to the sternum indirectly.

Learn more about the ribs here

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In periods subsequent to an asset transfer from a subsidiary to its parent at a gain, what effects continue on the seller's and buyer's books from a consolidated reporting perspective?

a. retained earnings of the seller are overstated
b. retained earnings of the buyer are overstated
c. retained earnings of the seller are understated
d. retained earnings of the buyer are understated

Answers

Answer:

a. retained earnings of the seller are overstated

Explanation:

An asset transfer from a subsidiary to its parent at a gain is an Intragroup transaction. Intragroup transactions must be eliminated otherwise the financial statements would be misleading and not have a faithful representation.

The consequence of this transfer is that the Income of the Seller (subsidiary) increases and this also increases the Retained Income Balance of for the Subsequent years. We should eliminate this Income.

A static budget: _________

a. should be compared to actual costs to assess how well costs were controlled.
b. should be compared to a flexible budget to assess how well costs were controlled.
c. is valid for only one level of activity. represents the best way to set spending targets for managers.
d. A planning budget is prepared before the period begins and is valid for only the planned level of activity.

Answers

Answer:

Explanation: A planning budget is prepared before the period begins and is valid for only the planned level of activity.

A static budget a planning budget is prepared before the period begins and is valid for only the planned level of activity. The answer is OPTION D.

A static budget is a type of planning budget that is prepared in advance of a specific period, such as a fiscal year or a quarter. It is based on the expected level of activity or production for that period and sets spending targets for various cost categories. However, a static budget is only valid for the planned level of activity and does not adjust for changes in actual activity levels.

To assess how well costs were controlled during the period, the static budget should be compared to the actual costs incurred. This comparison helps identify any variations or differences between planned and actual performance, which can provide valuable insights for future budgeting and cost management decisions.

In contrast, a flexible budget is a more dynamic tool that adjusts for changes in activity levels. It allows managers to see how costs should have behaved based on the actual level of activity achieved, providing a more accurate evaluation of cost control performance.

To learn more about managers, click here.

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#SPJ2

A stock currently sells for $65. The dividend yield is 3.5 percent and the dividend growth rate is 4.8 percent. What is the amount of the dividend to be paid in one year

Answers

Answer:

$2.275

Explanation:

Calculation for the amount of the dividend to be paid in one year

Using this formula

D1 =Dividend yield* Stock Amount

Let plug in the formula

D1= .035($65)

D1= $2.275

Therefore the amount of the dividend to be paid in one year will be $2.275

ABAC Farms expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6. Total fixed costs are $70,000. The total contribution margin is:

Answers

Answer: $125,000

Explanation:

The Contribution margin is the Sales revenue less the Variable cost.

Revenue

= 25,000 * 11

= $275,000

Variable costs

= 25,000 * 6

= $150,000

Total Contribution Margin

= 275,000 - 150,000

= $125,000

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turnover to 8 times a year while the cost of goods sold remains the same, which of the following statement is true?
A)$100,000 is additionally invested in purchasing stock
b)$160,000 is released into working capital
c)$60,000 is additionally invested in purchasing stock
d)$60,000 is released into working capital

Answers

Answer:

d)$60,000 is released into working capital

Explanation:

Inventory turnover gives the number of times that a business buys and sells inventory. A high inventory means that a business moves its stock fast, thereby generating cash.

The formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

= $160,000

should the firm improve turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

It means the firm will be requiring an average inventory of $100,000 as opposed to $160,000 previously. The difference ($60,000) is to be released to working capital.

Waterway Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.

Year
Straight-Line
Sum-of-the-
Years'-Digits
Double-Declining-
Balance
1 $12,420 $20,700 $27,600
2 12,420 16,560 16,560
3 12,420 12,420 9,936
4 12,420 8,280 5,962
5 12,420 4,140 2,042
Total $62,100 $62,100 $62,100

Answer the following questions.
What is the cost of the asset being depreciated?

Cost of asset $

Answers

Answer:

$69,000

Explanation:

The double-declining method uses twice the rate of the straight-line depreciation method.  

In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.

the depreciation rate = 1/5 x 100

=0.2 x 100

=20%

The Depreciation rate for the double-declining method is 40%. The straight-line method considers salvage value at the beginning, but double-declining depreciates until the salvage value.

In the first year under the double-declining method, the depreciation amount was $27,600.

It means 40% of the asset cost is $27,600.

The asset cost is 100%

40%=$27,600

100% = 27,600/40 x 100

=$690 x 100

=$69,000

Asset cost = $69,000

Johnson Motors' bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds?

Answers

Answer:

$935.83

Explanation:

market price of the bonds:

PV of face value = $1,000 / (1 + 9%)¹⁰ = $422.41

PV of coupon payments = $80 x 6.4177 (PV annuity factor, 9%, 10 periods) = $513.42

current market price = $935.83

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

Suppose the State bank of Pakistan instructs its Trading Desk to purchase Pkr 5 billion of securities. Analyze the result of this transaction on the balance sheets of the State bank of Pakistan and commercial banks.

Answers

Answer:

In simple words, the transaction given in the question will result different for state bank and commercial banks. Assuming the securities will be purchased from the commercial banks, the balance sheet of commercial banks will decrease assets and will increase their cash balance, thus, resulting in overall no change balance on assets side.

On the other hand, the state bank will add securities on the asset side of the balance sheet and will decrease cash balance.

What career would a graduate of a drama school be most likely to pursue?

.Fine Artist
.Musician
.Actor
.Dancer

Answers

Answer:

actor is the answer. have a good day, and pls mark brainlest

Answer:

Id say actor.

duuuuh if anything dancer

Explanation:

Can I please get brainleist.

Tatum Company has four products in its inventory. Information about the December 31, 2021, Inventory is as follows: Product 101 102 103 104 Total Cost $161,000 119,400 79,500 40,600 Total Replacement Cost $146,900 112,700 53,000 37,900 Total Net Realizable Value $133,500 145,900 67,100 68,100 The normal profit is 40% of total cost. The normal profit is 40% of total cost. Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. Product Total Cost Replacement cost NRV NRV - NP Market Inventory Value 101 102 103 104 Totals Required 1 Required 2 > Required 1 Required 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Tatum Company. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answers

Its okay just 19191 + 1020

A vertical aggregate supply curve:________

a. Reflects the inflexibility of prices and wages.
b. Implies that aggregate demand shifts have no impact on output.
c. Implies that supply-side policies will have no effect on the macro equilibrium.
d. Is likely in the short run.

Answers

Answer:

B. Implies that aggregate demand shifts have no impact on output.

Explanation:

This is a graphical representation that shows the total supply of an economy at different price levels. Generally in economics, it is known to slope upwards. And also what determines the quantities. During the long run, analyzing these forces that govern long-run growth, we did not need to make any reference to the overall level of prices. We learned that if two economies were identical except that one had twice as much money in circulation as the other, the price level would be twice as high in the economy with more money, but the output of goods and services would be the same.

A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an annual interest rate of 10%. What is the payback period (in years)

Answers

Answer:

5.24 years

Explanation:

the payback period = $5,240 / $1,000 = 5.24 years

The payback period is the amount of time it takes a project to generate enough cash to cover the initial investment required to carry it out.

You can also calculate the discounted payback period which first calculates the present value of each cash flow:

PV of cash flow 1 = $909.09PV of cash flow 2 = $826.45PV of cash flow 3 = $751.31PV of cash flow 4 = $683.01PV of cash flow 5 = $620.92PV of cash flow 6 = $564.47PV of cash flow 7 = $513.16PV of cash flow 8 = $466.51

in this case, the discounted payback period = 7.8 years

A company purchased a building for $850,000 on January 1, 2010. As of December 31, 2014, $200,000 of accumulated depreciation had been recorded related to this building. The building was sold to another party for $1,250,000 on January 1, 2015. On the sale of this building, the company should recognize:_______

a. A gain of $650,000
b. A loss of $650,000
c. A gain of $600,000
d. A loss of $600,000

Answers

Answer:

On the sale of this building, the company should recognize:_______

c. A gain of $600,000

Explanation:

a) Data and Calculations:

The cost for the Purchase of building on January 1, 2010 = $850,000

Accumulated depreciation as of December 31, 2014 =           200,000

Book value of building as of December 31, 2014 =               $650,000

Sale proceeds on January 1, 2015 =                                    $1,250,000

Gain from the sale of the building =                                      $600,000

Elena's aunt gave her $100 for her birthday with the condition that Elena buys herself something. In deciding how to spend the money, Elena narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally, she decides on Option B. The opportunity cost of this decision is

Answers

Answer: b. the value to Elena of the option she would have chosen had Option B not been available.

Explanation:

The opportunity cost of a course of action is the value of the next best alternative that would have been chosen had the current action not been undertaken.

The opportunity cost to Elena therefore, is the value of whatever option she would have chosen had option B not been available because that would have been the next best alternative.

If an industry has exactly 10 firms with identical sales, the four-firm concentration ratio must be:___________

a. 40.
b. 60.
c. 90.
d. 10.

Answers

Answer:

c

Explanation:

def c

how often do you rely on your time management skills to meet deadlines

Answers

Answer:

I usually rely on time management skills to meet deadlines all the time. If I look into my calendar I just see what's due first and then do only that work. commonly we have relied on google and to tell us what's do... especially online with so many assignments due at different times it could be very useful.

Explanation:

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 4.5%. Mudd has a beta of 2.3, and its realized rate of return has averaged 9.5% over the past 5 years. Round your answer to two decimal places. %

Answers

Answer:

15.55%

Explanation:

Calculation for the required rate of return for Mudd Enterprises

Using this formula

Required rate of return=Risk free rate+(Market risk premium +Stock beta)

Let plug in the formula

Required rate of return=(3.7%+1.5%)+4.5%(2.3)

Required rate of return=5.2%+0.1035

Required rate of return=0.1555*100

Required rate of return=15.55%

Therefore the Required rate of return is 15.55%

A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above: __________

a. ATC.
b. AVC.
c. AFC.
d. MC.

Answers

Answer:

A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above: __________

d. MC.

Explanation:

The general rule of profit maximization for a perfectly competitive firm is for the firm (and each firm in the market) to produce the quantity of output where the price (P) = marginal cost (MC).  In this case, the price (P) is a measure of the value that customers place on the good.   The marginal cost (MC) measures what it costs the firm to produce each marginal unit.

Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,800 units, April 13,300, May 16,100 and June 21,200. Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales. March 1 beginning inventory is projected to be 2,160 units. How many units will be produced in March?

Answers

Answer:

Production= 11,300 units

Explanation:

Giving the following information:

Sales:

March 10,800 units

April 13,300

Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales.

March 1 beginning inventory is projected to be 2,160 units.

To calculate the production for March, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 10,800 + (13,300*0.2) - 2,160

Production= 11,300 units

HALLOWEEN IS OVER! THANKSGIVING HERE WE COME YAY!! Thanksgiving is one of my favorite holidays! (Christmas is my other favorite) What are your guy's favorite holidays?!

Answers

Answer:

Christmas and Halloween

Explanation:

PERIODT

Answer:

Christmas and Thanksgiving baby

Explanation: purrrrrr

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:________

a. $200 decrease to net income
b. $200 increase to net income
c. $200 different between the debit and credit columns of the Unadjusted Trial Balance
d. An error in the Balance Sheet

Answers

Answer:

$200 decrease in net income.

Explanation:

Based on the information given we were told that the balance in Prepaid Rent of the company Unadjusted Trial Balance columns of the work sheet shows the amount of $600 in which the the company Adjustments columns show expired rent of the amount of $200 which means that the the company adjusting entry will results in $200 DECREASE IN NET INCOME because expired rent of the amount of $200 will be deducted from the Prepaid Rent of the amount of $600 in the Unadjusted Trial Balance columns of the work sheet.

what is cash flow??????

Answers

Answer:

A cash flow is a real or virtual movement of money: a cash flow in its narrow sense is a payment, especially from one central bank account to another; the term 'cash flow' is mostly used to describe

Answer:

the answer above is right

Explanation:

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