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Liono4ka [1.6K]
3 years ago
6

Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,0

00 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,100 units in 2016 and 1,550 units in 2017. Required: a. Calculate depreciation expense for 2016 and 2017 using the straight-line method.
Business
1 answer:
ivolga24 [154]3 years ago
8 0

Answer:

Annual depreciation= $4,000

Explanation:

Giving the following information:

The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.

<u>To calculate the depreciation expense, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (29,000 - 9,000)/5

Annual depreciation= $4,000

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Explanation:

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3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978

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4 years ago
Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the
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Complete question:

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6 0
3 years ago
A ________ is a collection of tasks, steps, or activities that are performed, usually in a specific order, and result in an end
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b

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2 years ago
Discussed why present age diseases are different from the pasr​
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6 0
3 years ago
Read 2 more answers
Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity du
Andre45 [30]

Answer:

A. 29.6%

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Return on Equity is the times of profit a owner can earn on the equity investment in the business. Higher ratio shows the business is more profitable.

As per given data

Net Income =  $36,610

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Return on Equity ( ROE ) = $36,610 / $123650

Return on Equity ( ROE ) = 0.296

Return on Equity ( ROE ) = 29.6%

4 0
3 years ago
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