The cost of the car after 5 years from then, will be $15652.99.
Given here, the depreciation every year(r) 7% or 0.07per year, asset cost (of the car) is $22,500 and time period (n) is 5 years.
The value after 5 years can be calculated as,
Depreciated value = asset cost ×(1-r) n
= 22500 × (1-0.07) 5
= 15652.99$.
Thus, the car worths 15652.99$ after 5 years.
The worth of an asset after its useful life is expired, as it is diminished over time by depreciation, is its depreciated cost. The asset’s worth is continuously diminished by figuring out how much it will cost to depreciate it, but the depreciated cost technique always permits accounting records to represent an item at its current value.
Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life.
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Answer and Explanation:
No loss will be recognized in the year 20X3 and a provide a reduction in E&P of $292,500
Given:
Current and accumulated E&P = $585,000
Fair market value = $234,000
Profit on accumulation:
Profit on accumulation = Current and accumulated E&P - Fair market value Profit on accumulation = $585,000 - $234,000
Profit on accumulation = $351,000
Distribution is divided because accumulated profit in year 20X3 is higher then distribution.
Answer:
Tennis racquet cost is $76.71 per unit
Badminton racquet cost is $73.67 per unit
Price of badminton racquet at 30% mark-up is $95.77
Explanation:
I calculated the cost of each racquet as well as their prices in the attached excel file.
I started I added all prime costs(direct materials plus direct labor costs) to overhead costs.
After having arrived at total manufacturing costs, I divided them by volume of each product to arrive at cost per unit.
I then marked up the cost by 30% to determine market price per unit.
Answer:
Explanation:
The journal entries are shown below:
a. Inventory A/c Dr $26,000
To Notes payable A/c $26,000
(Being inventory is purchased for signing the short term notes payable)
b. Interest expense A/c Dr $780
Notes payable A/c Dr $26,000
To Cash A/c $ $26,780
(Being cash is paid on maturity)
The interest expense is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $26,000 × 6% × (6 months ÷ 12 months)
= $780
The 6 months is calculated from March 1 to September 1
Answer:
$62,600
Explanation:
Net operating income under variable costing = $63,800
Fixed manufacturing overhead cost deferred in inventory = (300 units multiplied by $4) =$1,200
the absorption costing net operating income last year= $63,800 - $1,200 = $62,600
