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olga nikolaevna [1]
2 years ago
8

A company buys equipment for $48,000, expects to use it for ten years, and then sell it for $6,000. using the straight-line meth

od, the company should report annual depreciation for the equipment of?
Business
1 answer:
Vesnalui [34]2 years ago
3 0

Using the straight-line method, the company should report annual depreciation for the equipment of $4,200.

Given,

A company buys equipment for $48,000 expects to use it for ten years, and then sell it for $6,000

The formula to calculate annual depreciation is given below-

Annual depreciation = (Original cost - salvage value) / Estimated life(years)

Annual depreciation = ($48,000 - $6,000) / 10

Thus, annual depreciation = $4,200

A standard yearly rate at which depreciation is charged to a fixed asset is called annual depreciation. Thus, to calculated depreciation the straight-line method is used. Where you need to subtract the asset's salvage value from its cost.

To learn more about annual depreciation here:

brainly.com/question/27971176

#SPJ4

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Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categor
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Answer:

The correct answer is that the valuation would decrease total assets and stockholders’ equity by $101.00

Explanation:

Item             Cost                      Market price            Impact

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1 220 $ 4.40  $ 4.60        no impact as cost is lower

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4 25 $ 20.50  $ 25.00 No impact as cost is lower

The total reduction in the value of inventory as a result of adopting the lower of cost or market price valuation is $101 ($75+$26),hence decreases total assets by $101 and the stockholders' equity(retained earnings which is a component of stockholders' equity ) by the same amount

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Wims, Inc., has current assets of $5,000, net fixed assets of $23,300, current liabilities of $4,450, and long-term debt of $11,
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Answer:

a). $12,850  b.) 550

Explanation:

a). Shareholder equity

The shareholder equity consists of the shareholder capital contributions plus the retained earnings. calculating the shareholder's equity is through the formula shareholder equity = total assets -total liabilities

In this case,

Total assets = $5,000,+ $23,300= $28,300

Total liabilities = $4,450 + $11,000 + $15,450

Shareholder equity = $28,300 -$15,450 = $12,850

b). Net working capital

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