1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
notsponge [240]
3 years ago
13

2. The La Salle Bus Company has decided to purchase a new bus for $95,000 with a trade-in of their old bus. The old bus has a BV

of $10,000 at the time of the trade-in. The new bus will be kept for 10 years before being sold. Its estimated SV at that time is expected to be $15,000.
a. Determine which asset class of the bus.
b. Determine annual Straight-Line Depreciation charge.
Business
2 answers:
Lera25 [3.4K]3 years ago
5 0

Answer:

a.

9 recovery period years class

b.

$8,889 per year

Explanation:

a.

Buses are 9 years recovery period class , in which it is depreciated using historical method and it has 5 years GDS class life.

b.

Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.

We will depreciate this asset for only 9 years because it has 9 years class, even it will be kept for 10 years but the depreciation charged for 9 years.

Depreciation rate = ( Cost - Salvage Value ) / useful life = ($95,000 - $15,000) / 9 = $8,889

Depreciation charged in 2018 = $19,500

Ksivusya [100]3 years ago
3 0

Answer:

a. Non- Current Asset

b. Depreciation Charge = $8,000

Explanation:

Straight Line method charges the same amount of depreciation on the asset over its useful life.

<em>Depreciation Charge = (Cost - Salvage Value)/ Number of Useful Life</em>

                                   = ($95,000- $15,000) / 10

                                   = $8,000

You might be interested in
A free market exists
Vaselesa [24]
<span>A free market exists when the government places few restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed. A free market is an economic system where prices are decided on if there is unrestricted competition between privately owned businesses. Supply and demand are the main factors in a free market and there is little to no government control. </span>
3 0
3 years ago
Read 2 more answers
What line item flows from the statement of retained earnings to the balance​ sheet?
-Dominant- [34]

Answer:

Retained Earnings

Explanation:

The statement of retained earnings is prepared after preparing the income statement but before preparing the balance sheet. The reason behind this is that the statement of retained earnings is used to calculate the amount of retained earnings at the end of the period to be shown in the balance sheet.

3 0
3 years ago
A price floor is found ___________ the equilibrium point.
leonid [27]
Underneath
because it's a floor haha
3 0
3 years ago
The job-specific knowledge you need to perform well in a specialized field, known as _______ skills, appear to be most important
agasfer [191]
The answer is technical skills
5 0
1 year ago
Perform a horizontal analysis on the following information providing both the dollar amount and percentage change.
Vera_Pavlovna [14]

Answer and Explanation:

The computation of the percentage of each amount is as follows;

<u>Particulars         2020               Change               Percentage of change </u>

                                a                         b                         (b ÷ a) × 100

Cash             $170,000       $500,000            294%

Accounts Receivable $710,000 $270,000            38%

Inventory                $520,000    $190,000             37%

Long Term Assets  $2,100,000 -$200,000         -9.52%

Total Assets          $3,500,000   $760,000           21.71%

6 0
2 years ago
Other questions:
  • Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp pro
    14·1 answer
  • Minarski Electronics sells computers and provides hardware maintenance services. On April 1st, Minarski sold a package deal cont
    12·1 answer
  • USSOCOM is focused on organizing, training, equipping and providing highly capable __________ special operations forces to geogr
    10·1 answer
  • Blank is the best solution for preventing intoxication
    12·2 answers
  • Which of the following personnel policies is not relevant to recruitment
    7·2 answers
  • You are considering an investment in a mutual fund with a 4% load and expense ratio of 0.5%. You can invest instead in a bank CD
    10·1 answer
  • The federal government wants more people to buy hybrid or electric cars. currently, they are more expensive than cars fueled by
    10·1 answer
  • Suppose the total demand function for a good was made up of 10 identical, individual demanders all with a demand function given
    15·1 answer
  • In your own understanding, compare and contrast "business markets versus consumer-goods markets."​
    11·1 answer
  • ABC Hospital invests $5,095,000 in a joint venture with a reputable oncology group and the hospital agrees to a 55% interest in
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!