Rita Rodriquez obtained a 24 month

Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope

CaHeK987 [17]

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

= 20% × 2 = 40% (Because Declining Balance at Twice the Straight Line Rate)

1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

8 0

3 years ago

A pay policy line Question 36 options: can be generated using a statistical method called regression analysis. can seldom provid

pentagon [3]

Answer:

A pay policy line reflects the pay structure in the market, which always matches rates in the organization.

Explanation:

A pay policy line is the salary level and organization chooses to pay its employees compared to the standard salary level in the market.

Organizations would prefer not to overpay or underpay their employees. Therefore they consider the standard pay structure of the market and match the amount they pay their employees to this structure.

8 0

3 years ago

A fee that covers the cost of ensuring that the home belongs to the seller, and may also include title insurance, which protects

Aleks [24]

C. Title Fee

The company will perform a title search to ensure that there is a clear path of ownership so there can be a legal sale contract.

8 0

4 years ago

Read 2 more answers

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend

xxMikexx [17]

Answer:

c) $25,000

Explanation:

A property dividend should be recorded in retained earnings at the property's market value at date of declaration.

The date of declaration is the date on which the firm has made the commitment to pay the dividend. The market value on this date is the value that was considered when the board made the decision to distribute a property dividend and thus is the appropriate measure of the sacrifice to the firm.

In application to the scenario, the property dividend will be recorded in retained earnings at the market value at the date of declaration which is Jan 15 NOT on the day it is payable.

Hence, retained earnings will reduce by $25,000

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend of the Oil stock to shareholders of record on February 1, 20X6, payable on February 15, 20X6. During 20X6, the Oil stock had the following market values:

January 15

$25,000

February 1

26,000

February 15

24,000

6 0

3 years ago

Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company poli

densk [106]

Answer:

Merchandise purchases budget explanations only.

Explanation:

Hi, your question has missing information, however i have supplied explanations below.

A purchases budget is required to determine the quantities of purchases required for :

Resale - For Merchandisers
Use in Production in case of Manufacturer

Here is the structure of the merchandise purchases budget for Walker Company (Merchandiser).

Merchandise purchases budget

Month

Budgeted Sales x

Add Budgeted Inventory x

Total Purchases needed x

Less Budgeted Opening Inventory (x)

Budgeted Purchases x

As stated by the question : Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.

Ending Inventory = Next months` sales x required percentage

Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.

5 0

3 years ago