Using the straight-line method, the company should report annual depreciation for the equipment of $4,200.
Given,
A company buys equipment for $48,000 expects to use it for ten years, and then sell it for $6,000
The formula to calculate annual depreciation is given below-
Annual depreciation = (Original cost - salvage value) / Estimated life(years)
Annual depreciation = ($48,000 - $6,000) / 10
Thus, annual depreciation = $4,200
A standard yearly rate at which depreciation is charged to a fixed asset is called annual depreciation. Thus, to calculated depreciation the straight-line method is used. Where you need to subtract the asset's salvage value from its cost.
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Answer:
Nominal rate = 5%
Explanation:
Given:
Require rate = 3%
Inflation rate = 2%
Find:
Nominal rate = ?
Computation:
⇒ Nominal rate = Require rate + Inflation rate
⇒ Nominal rate = 3% + 2%
⇒ Nominal rate = 5%
Therefore, The nominal rate she must charge is 5%
Answer:
Jim is beginning his research on franchise businesses in order to find one that meets his needs. A quick, easy way to get general information is to look up Internet sites - C.
Answer:
The correct answer is letter "D": misappropriation theory.
Explanation:
The misappropriation theory states that someone who uses insider information in trading securities is guilty of securities fraud. That person could be convicted for insider trading because this is a deceptive practice. This theory aims to protect the securities markets with equal accessibility to information.
Answer:
1. The fixed portion of the predetermined overhead rate for the year is $10,000 per direct labor hour.
2. The fixed overhead budget variance is $4,000 unfavourable and the fixed overhead volume variance is $10,000 favourable.
Explanation:
In order to calculate the the fixed portion of the predetermined overhead rate for the year we would have to use the following formula:
predetermined overhead rate for the year=<u>Total fixed overhead cost year</u>
Budgeted direct labor-hours
=$ 250,000/25,000
=$10,000
1. The fixed portion of the predetermined overhead rate for the year is $10,000 per direct labor hour.
In order to calculate the fixed overhead budget variance, we use the following formula:
2. fixed overhead budget variance=Actual fixed overhead cost for the year- budgeted fixed overhead cost for the year
=$ 254,000-$ 250,000
=$4,000 unfavourable
In order to calculate the fixed overhead volume variance, we use the following formula:
fixed overhead volume variance=budgeted fixed overhead cost for the year-fixed overhead appliead to work in process
=$ 250,000-(26,000×10)
=$10,000 favourable
