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Oduvanchick [21]
3 years ago
9

For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for st

raight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
Asset Cost Residual Value Service Life (Years) Depreciation Method Depreaciation (Year 2)
A _____ $39,000 5 DDB $51,000
B 40,000 _____ 8 SYD 7,000
C 103,000 13,000 _____ SL 9,000
D 268,000 29,000 10 _____ 23,900
E 219,000 39,00 8 DB _____

Business
1 answer:
makkiz [27]3 years ago
7 0

Answer:

Please check the attached image for the answers

Explanation:

Check the attached image for a clearer image of the table used in answering this question

A.

Cost of asset = c

Useful life = 5

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

= 2 × (1/5) = 0.4 = 40%

Because the depreciation factor is 40%, the remaining book value after depreciation would be 60%.

Note that : Book value in year 1 = Cost of asset - Depreciation expense of year 1

Book value in year in subsequent years = previous book value - that year's depreciation expense

The book value in year 2: 0.6c x $51,000

Solve for c = 51,000 / 0.6 = 85,000

So, the book value in year 2 is $85,000

The book value in year 1 which is also the cost of the asset can be found using this equation : (2 / 5 ) x c = $85,000

Solve for c = $85,000 × (5/2) = $212500

The cost of the asset is $212,500

For asset b

Sum of the year Depreciation expense = (number of useful life remaining / sum of useful years) x (Cost of asset - Salvage value)

number of useful life remaining at year 2 = 7

Sum of useful life = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 = 36

The equation for year 2 depreciation : (7/36) × ($40,000 - Salvage value) = $7,000

0.194444 × ($40,000 - Salvage value) = $7,000

Make salvage value the subject of the formula and solve

Salvage value = $4,000

For asset c,

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Inputting the values given for asset C into the above equation: ($103,000 - $13,000) ÷ useful life = $9,000

= $90,000 / useful life = $9,000

Solve for useful life, useful life = 10 years

For asset D,

To find the depreciation method used , we have to employ trial and error method. We would try all the depreciation methods available and determine which depreciation method would give us the depreciation value of $23,900

I would start with the straight line depreciation method Deprecation method.

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

= ($268,000-$29,000)/10 = $23,900

From the above calculation, the depreciation method used is the straight line depreciation method.

For asset E,

The 150% declining method = Depreciation factor x cost of the asset

Depreciation factor = 1.5 x (1/useful life)

1.5 x (1/8) = 0.1875

To derive the depreciation expense in year 2, the book value at the beginning of year 2 has to be determined. To determine the year 2 book value, the depreciation expense in year one has to be determined.

Year 1 depreciation expense = 0.1875 x $219,000 = $41,062.50

Year 2 , book value = $219,000 - $41,062.50 = $177,937.50

Depreciation expense in year 2 = 0.1875 x $177,937.50 = $33,363.28

I hope my answer helps you

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On December 1, 2021, Coronado Industries exchanged 48000 shares of its $10 par value common stock held in treasury for a used ma
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Calculation to determine what Coronado's total stockholders' equity will increase by

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3 years ago
Factors that can influence the success of a TQM program in a negative way include all of the following, EXCEPT _______. a. tasks
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Answer:

a. tasks make high-skill demands on employees.

Explanation:

A Total Quality Management program can be defined as an approach used to improve flexibility, effectiveness and competitiveness within an organization.

The philosophy of this approach contains a system that encompasses the organization as an integrated and consistent system, with the participation of people grouped in multifunctional teams, focused on improving management, customer service, training and development that will lead to the continuous improvement of organizational processes. .

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3 years ago
You just started your first job today. Besides your 401K, you are planning to save $3,000 a year for 40 years for your retiremen
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Answer:

The correct answer is 777.169.56.

Explanation:

According to the scenario, the given data are as follows:

Payment per year (PMT) = $3,000

Time (N) = 40 years

Rate of interest (R)= 8%

So, the future value of the following can be calculated by using the following formula:

Future value = PMT × \frac{((1+r)^{n} -1)}{R}

Now, put the value of the following in the formula. then,

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= 777,169.56

Hence, the value in the account after 40 years will be 777,169.56.

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