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nasty-shy [4]
3 years ago
11

A contract clause which specifies the amount of damages to be paid in the event of a breach is called:

Business
1 answer:
Usimov [2.4K]3 years ago
6 0

A contract clause which specifies the amount of damages to be paid in the event of a breach is called C. a liquidated damages clause.

A contract clause is a specific section that is added into a clause and addresses specific subject matters or topics. These clauses are normally added to make sure each section understands and performs their duties.

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On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated 7 year
Degger [83]

Answer:

Part a

2021  = $7,000

2022  = $6,000

Part b

2021  = $5,250

Explanation:

Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.

Step 1

<em>Some of digits calculation :</em>

Year      Digits

2021        7

2022       6

2023       5

2024       4

2025       3

2026       2

2027        1

Total      28

Step 2

<em>Determine the depreciable amount</em>

Depreciable amount = Cost - Residual value

                                   = $40,000 - $12,000

                                   = $28,000

Step 3

<em>Depreciation expense calculations</em>

2021 = 7 / 28 x $28,000 = $7,000

2022 = 6/ 28 x $28,000 = $6,000

assuming the equipment was purchased on March 31, 2021

2021 = $7,000 x 9/12 = $5,250

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