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Darina [25.2K]
3 years ago
6

ABC Co. purchased equipment for $72,000 on January 1, 2017. The equipment is expected to have a five-year life and a residual va

lue of $6,000. Using the double-declining balance method, depreciation for 2017 and the book value at December 31, 2017, would be:
Business
1 answer:
Korvikt [17]3 years ago
6 0

Answer:

Depreciation expense for 2017: $26,400

The book value of the equipment at December 31, 2017: $45,600

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total cost of the equipment - Residual value =  $72,000 - $6,000 = $66,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2017 = 40% x $66,000 = $26,400

Accumulated depreciation at December 31, 2017 = $26,400

Book value of the equipment at December 31, 2017 = Cost of the equipment - Accumulated depreciation at December 31, 2017 = $72,000 - $26,400 = $45,600

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3 years ago
Which of the following 2 goods would most likely experience the law of increasing opportunity cost?
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A company with 110,000 authorized shares of $8 par common stock issued 49,000 shares at $13. Subsequently, the company declared
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Answer:

$29,400

Explanation:

The company will distribute dividends only to outstanding shares, since the number of outstanding shares is not specified, we should assume that all the 49,000 shares issued are outstanding shares. The company declared a 2% dividend, so we must multiply the current value of the stock times 2% = $30 x 2% = $0.60 per share.

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8 0
3 years ago
Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which in
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Answer:

                                  Trial Balance

Items                                     Group             Debit ($)    Credit ($)

Cash                                      Asset               37641

Office Supplies                     Asset               890

Prepaid Insurance                Asset               4600  

Office Equipment                 Asset               12900

Accounts Payable                Liability                                12900

Capital                                   Equity                                  18000

Withdrawals                          Equity              3329  

Engineering Fees earned    Revenue                              36000

Rent Expense                        Expense         <u>7540</u>           <u>            </u>

Total                                                               <u>$66900</u>      <u>$66900</u>

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3 years ago
You deposit $100 on a bank 10% interest rate account for one year. How much do you get in one year time?
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Answer:

$10

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8 0
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