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Akimi4 [234]
1 year ago
13

A factory machine was purchased for $380000 on January 1, 2021. It was estimated that it would have a $70000 salvage value at th

e end of its 5-year useful life. It was also estimated that the machine would be run 37000 hours in the 5 years. The company ran the machine for 3700 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be $62000. $70000. $38000. $31000.
Business
1 answer:
marusya05 [52]1 year ago
6 0

If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be (D) $31,000.

<h3>What is depreciation?</h3>
  • Depreciation in accounting refers to two aspects of the same concept: first, the actual decrease in fair value of an asset, such as the decrease in value of factory equipment each year as it is used and worn, and second, the allocation of the original cost of the assets to periods in which the assets are used in accounting statements (depreciation with the matching principle).
  • Thus, depreciation is the loss in asset value and the mechanism used to reallocate, or "write down," the cost of a tangible asset (such as equipment) throughout its usable life period.

To find If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021:

  • Annual depreciation expense = (Cost - Salvage value) ÷ 10
  • = (380,000 - 70,000) ÷ 10
  • = 310,000 ÷ 10
  • = $31,000

Therefore, if the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be (D) $31,000.

Know more about depreciation here:

brainly.com/question/1203926

#SPJ4

The correct question is given below:

A factory machine was purchased for $380000 on January 1, 2021. It was estimated that it would have a $70000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 37000 hours in the 5 years. The company ran the machine for 3700 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be

(A) $62000.

(B) $70000.

(C) $38000.

(D) $31000.

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A

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You can think about this like how you put money into a bank and let the interest pile up over time.

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Identifying specific portions of a market and targeting them with specific advertising messages is called _____.
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Ben has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to a concert fo
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Answer:

The correct answer is: $60.

Explanation:

Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.

In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours (<em>$10 x 3 = $30</em>). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:

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5 0
3 years ago
Lehman Corp. has two departments: Assembly and Testing. Assembly department had beginning inventory of 750 units which were 50%
algol13

Answer:

Total equivalent unit     1,425 units

Explanation:

<em>Under the first-in -first out system, to account for the units completed in a period, it is assumed that the opening inventory units are first completed and the balance represents the newly introduced.</em>

<em>Fully worked represents unit of inventory started this this period and completed this period</em>

Fully worked = completed units - opening inventory

Fully worked = 1200 -750 = 450 units

Item                        Units                                     Equivalent Units

Opening WIP         750     750×50%                     375

Fully worked          450      450× 100%                   450

Closing WIP           800       800× 75%                 <u> 600</u>

Total equivalent unit                                              <u>1,425</u>

Note the opening inventory has 50% work done last period so the balance of 50% i.e (100 - 50)  is completed this period

     

5 0
3 years ago
Assume the following data concerning a purchase of merchandise by Icon Co. on April 2:
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The purchase amount that Icon Co. would record on April 2 would be: <u>c. $4,000</u>.

<h3>What is the purchase amount to be recorded?</h3>

The purchase amount that should be recorded on the date of purchase is the amount of the transaction.  This does not take into account the return and discount which happened later.

This implies that Icon Co. will reduce the purchase amount on April 4 when half of the goods were returned with a contra entry.  And discount will be based on the balance of $2,000 instead of $4,000.

<h3>Data and Calculations:</h3>

Purchase on April 2 = $4,000

Purchases Return on April 4 = $2,000

Thus, the purchase amount that Icon Co. would record on April 2 would be: <u>c. $4,000</u>.

Learn more about recording credit purchases at brainly.com/question/5651500

6 0
2 years ago
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