Answer:
The depreciation expense for the second year will be $108000
Explanation:
The double declining balance method is an accelerated form of depreciation that charges a rate that is double of the straight line depreciation rate. The formula for depreciation under double declining balance method is,
Depreciation expense = 2 * SLDR * BV
Where,
- SLDR is the straight line depreciation rate
- BV is the book value at the start of the period
The straight line depreciation rate = 100% / 5 = 20% or 0.2
<u>Depreciation expense under Double Declining method</u>
First Year = 2 * 0.2 * 450000 = $180000
Carrying value after Year 1 = 450000 - 180000 = $270000
Second Year = 2 * 0.2 * 270000 = $108000
Carrying value after Year 2 = 270000 - 108000 = $162000
Answer:
Option D. $400,000
Explanation:
The Variable manufacturing overhead for the year can be calculated using the following formula:
Variable OH Budget = Budgeted Variable OH rate per machine-hour × Total machine hours worked in the year
Here
Budgeted V.O.H Rate = $4 per Machine Hour
Total Machine Hours worked = 100,000 Machines hours
By putting the values in the equation, we have:
Variable OH Budget = $4 × 100,000 = $400,000
Answer:
You are right it is D
Explanation:
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Answer:
Wallace's AGI for the current year would be $38,000.
Explanation:
AGI = salary + gain sale of stock - loss on sale of stock - stock worthless
= $90,000 + $30,000 - $75,000 - $7000
= $38,000
Therefore , Wallace's AGI for the current year would be $38,000.