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Damm [24]
3 years ago
11

Equipment was purchased for $161500. Freight charges amounted to $5500 and there was a cost of $10000 for building a foundation

and installing the equipment. It is estimated that the equipment will have a $38000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be
Business
1 answer:
NISA [10]3 years ago
4 0

Answer:

$27,800

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Cost of asset = $161500 + $5500 +  10000 =$177,000

$177,000 - $38000 = $139,000 / 5 =$27,800

depreciation expense each year would be $27,800

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Theresa works in a manufacturing plant where many of the male employees put up photographs of bikini-clad women in their work ar
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Product Units Produced Final Sales Value per Unit Separate Costs

   A             10,000                    $25                                  $125,000

   B             15,000                    $30                                  $250,000

   C            <u> 12,500 </u>                  <u> $24 </u>                                <u> $125,000</u>

Total           37,500                                                            $500,000

Sales Value

A (10,000 x $25)      $250,000

B (15,000 x $30)      $450,000

C (12,500 x $24)      <u>$300,000</u>

Total Sales Value                       $1,000,000

Less

Joint Cost                                  ($300,000)

Separable cost                         <u>($500,000)</u>

Gross Profit                               $200,000

Gross Profit Percentage = ( $200,000 / $1,000,000 ) x 100 = 20%

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