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mezya [45]
3 years ago
11

Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the

estimated useful life is 9 years. The straight-line method is used for depreciation. In 2021, Waterway changed its estimates to a total useful life of 5 years with a salvage value of $99000. What is 2021 depreciation expense
Business
1 answer:
Wittaler [7]3 years ago
5 0

Answer:

The depreciation charge in 2021 is $ 164,000.00  

Explanation:

Annual depreciation charge=cost-salvage value/useful life

cost is $610,000

salvage value is $61,000

useful life is 9 years

Annual depreciation charge=($610,000-$61,000)/9=$61000

The depreciation of charge of $61000   is applicable to years 2018 ,2019 and 2020 respectively.

The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.

revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=

$164,000.00  

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Luther's Operating Margin for the year ending December 31, 2008 is closest to: Group of answer choices 0.5% 0.7% 5.4% 6.8%
svlad2 [7]

Answer:

the operating margin is 5.4%

Explanation:

The computation of the operating margin is shown below:

As we know that

Operating Margin = Operating Income ÷ Sales

= $31.3 ÷ $578.3

= 5.4%

Hence, the operating margin is 5.4%

It could be determined by dividing the operating income from the sales

3 0
2 years ago
Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
Savatey [412]

Answer:

The land basis will be $8,000 and partnership basis will be $42,000.

Explanation:

The outside basis at the end of the year is $56,000.

The cash basis is $6,000.

The fair value of land is $14,000.

The land basis to RF is $8000.

The partnership basis will be

=Outside basis-cash basis-land basis

=$(56,000-6,000-8,000)

=$42,000.

So, the land basis will be $8,000 and partnership basis will be $42,000.

5 0
3 years ago
If you use credit what are you creating
Margaret [11]
<span>B is the correct answer. When you spend money on a credit card you are creating a debt because you are spending money you don't actually have at that point in time.</span>
3 0
3 years ago
Read 2 more answers
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
SCORPION-xisa [38]

The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750


Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

Inventory level = $750 (500 x 1.1) = $412,500

4 0
3 years ago
In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb
MArishka [77]

Answer:

d) as a current liability

Explanation:

Current Liabilities are those liabilities which are payable within one years time e.g trade payable, tax payable etc.

The credit against the purchase of inventory is classified as the trade payable and it is paid in a short time, so it will be reported on the balance sheet in current liability section.

5 0
3 years ago
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