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IgorLugansk [536]
3 years ago
15

A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an esti

mated useful life of 40 years. Determine the following.
(a) The double-declining-balance rate
(b) The double-declining-balance depreciation for the first year
A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years. Determine the following:
(a) The depreciable cost
(b) The straight-line rate
(c) The annual straight-line depreciation
Business
1 answer:
BARSIC [14]3 years ago
5 0

Answer:

a. 0.05

b. $68,750

a. $1,150,000

b. 0.1

c. $115,000

Explanation:

Depreciation expense using the double declining method = Depreciation rate x cost of the asset

Depreciation rate = 2 x (1/useful life)  = 2 / 40 = 0.05

The double-declining-balance depreciation for the first year = 0.05 x $1,375,000  = $68,750

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

The depreciable cost = Cost of asset - Salvage value = $1,450,000 - $300,000 = $1,150,000

The straight line rate = 1 / useful life = 1 / 10 = 0.1

The annual straight-line depreciation = $1,150,000 x 0.1 = $115,000

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Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for
Alina [70]

Answer:

June 1, 2021

No entry – neither party has performed under the contract.

August 1,2021

Dr.  Cash                                        $4,000

Dr.  Accounts Receivable            $700

Cr.  Unearned Service Revenue  $1,085

Cr.  Sales revenue                        $3,615

Dr.  Cost of goods Sold                $2,300

Cr.  Inventory                                 $2,300

Explanation:

As no one performed under the contract on June 1, 2021, so there will be no entry on this day.

On August 1, 2021, Windsor has 2 performance obligations

First: Delivery of the windows

&

Second: Installation of the windows

Fair value of Windows = $4,000

Fair value of Installation services = $1,200

Fair Value of Contract  = $4,000 + $1,200 = $5,200

Allocation of to revenue is based on the ratio of fair value of each performance to the total fair value of contract, As below

Windows  = ($4,000 / $5,200) X $4,700 = $3,615 (round to nearest dollar)

Installation services = ($1,200/$5,200) X $4,700 = $1,085 (round to nearest dollar)

Total Revenue recognized = $4,700

8 0
3 years ago
A company has 150 employees, each working 40 hours per week and earning $11 an hour. Although the company does not pay any healt
ohaa [14]

Answer:

Total salary expense in week 1 = $440 x 150 = $66,000

Total deductions due to taxes = $121.66 x 150 = $18,249

Actual direct deposit of payroll in week is $66,000 minus $18,249 = $47,751

Explanation:

Number of employees = 150

Hourly wage = $11

Weekly hours worked = 40 hours

Weekly wage = 40 x 11 = $440 per employee

Taxes deduction:

Federal - 15% of gross earnings = $66

State - 5% of gross earnings = $22

FICA - 7.65% of first #128,400 = $33.66

Total deductions = $121.66

Net Earnings = $318.34

5 0
3 years ago
Read 2 more answers
Selecting the best alternative system involves:
MissTica

Answer:

The correct answer is letter "E": both A and B.

Explanation:

At the moment of creating a strategic plan, companies must also outline contingency strategies in case the master plan does not work. These contingency plans work as alternative systems that, just like the master plan, englobe all the activities and steps the firm will follow to keep the business up and running.  

Therefore, the alternative systems also include the resources available the firm counts on to conduct its operations which will also let the company be aware of the limits it has in the for its day-to-day and long-term activities.

7 0
2 years ago
Amber’s academic adviser has asked her to set 3 academic goals for this semester. these goals are most likely to be accomplished
Kisachek [45]
Had to look for the options and here is my answer:

Since Amber was assigned by her academic adviser some academic goals, how these goals could be accomplished is by writing or noting down her goals. This way, she will have a guide on what to do first and the task will do done smoothly.
4 0
3 years ago
Henry is a landlord renting an apartment to​ Steven, a student at a nearby university. The two enter into a​ one-year lease arra
Sindrei [870]

Answer:

Mitigate his damages

Explanation:

By law, mitigation involves making effort to reduce losses. Now, an individual claiming damages or losses due to break in contract or a wrongful act by another individual has a duty under the law to mitigate those damages. That is to say, the plantiff is under a duty under the law to reduce the loss by taking advantage of any opportunity arising that may help.redice the losses or damages. However, in this case, the plantiff, who's the landlord Henry did not mitigate the loss by not attempting to or renting the accommodation out for the remaining six month. Thus, the damages would likely be reduced because he failed to mitigate his damages as he should have done as required under the law.

3 0
3 years ago
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