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1 year ago

What should the accumulated depreciation equal at the end of the asset's useful life?

1 answer:

8 0

What should the accumulated depreciation equal at the end of the asset's useful life The Balance In Accumulated Depreciation Will Be The Same Amount Under all the depreciation methods.

The depreciation of an asset up to one point in its life is referred to as accumulated depreciation. Since accumulated depreciation is a counter asset account, its natural equilibrium is a credit that lowers the asset's total value. General accepted accounting principles (GAAP) require that expenses be matched to the same accounting period in which the relevant revenue is generated. This is known as the matching principle. A business will depreciate a portion of a capital asset's value over the course of each year of its useful life. This implies that the expense related to using up an asset that has been capitalised is reported every year the asset is put to use and generates income.

Learn more about depreciation here

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Lennon, Inc. is considering a five-year project that has an initial outlay or cost of $80,000. The respective future cash inflow

SIZIF [17.4K]

Answer:

26.16%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be determined using a financial calculator

CO = -80,000

C1 = $15,000

C2 = $25,000

C3 = $35,000,

C4 = $45,000

C 5 = 55,000

IRR = 26.16

To determine IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

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2 years ago

The following transactions occur for the Hamilton Manufacturers.

Radda [10]

Answer:

The answer is stated below:

Explanation:

The accounting equation is as follows:

Assets = Liabilities + Stockholders' Equity

Analyzing the transactions:

1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity

So,

Assets = Liabilities + Stockholders' equity

+ $4,000 = $0 + +$4,000

2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

So,

Assets = Liabilities + Stockholders' equity

+ $10,500 = +$10,500 + $0

3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

So,

Assets = Liabilities + Stockholders' equity

- $1,200 = $0 + -$1,200

7 0

3 years ago

At the beginning of the period, the Cutting Department budgeted direct labor of $52,350 and supervisor salaries of $42,150 for 3

xxTIMURxx [149]

Answer:

$77,000

Explanation:

Direct Labor = $52,350 (Its varies with the number of Production hours). Hence, $52,350 for 3,490 hours

For 3,800 hours, (52,350/3,490) * 3,800 = $57,000

Supervisor Salaries = $20,000 (Since the Supervisor Salary is not an incremental cost, it is a fixed one). So, the Supervisor Salaries remain $20,000

Net budget (flexible) = $57,000 + $20,000

Net budget (flexible) = $77,000

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3 years ago

During the beginning of the 21st century, the growth in computer sales declined for the first time in almost two decades. As a r

MAXImum [283]

Answer:

Answer for the question:

During the beginning of the 21st century, the growth in computer sales declined for the first time in almost two decades. As a result, PC makers dramatically reduced their orders of computer chips from Intel and other vendors. In general, the environment in which computer manufacturers operate is very uncertain; how should we expect this feature of the market to affect the length of contracts between computer manufacturers and their hardware manufacturers?

is given in the attachment.

Explanation:

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2 years ago

On November 1, 2021, Aviation Training Corp. borrows $48,000 cash from Community Savings and Loan. Aviation Training signs a thr

mixas84 [53]

Answer:

Explanation:

The journal entries are shown below:

(A) Cash A/c Dr $48,000

To Notes payable A/c $48,000

(Being note is issued for cash)

(B) Interest expense A/c Dr $480

To Interest payable A/c $480

(Being accrued interest adjusted)

The computation is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $48,000 × 6% × (2 months ÷ 12 months)

= $480

The 2 months is calculated from November 1 to December 31

Interest payable A/c Dr $480

Notes payable A/c Dr $48,000

To Cash A/c $48,720

(Being cash is paid on maturity)

The computation is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $48,000 × 6% × (1 months ÷ 12 months)

= $480

The 1 months is calculated from December 31 to January 31

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2 years ago