1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is
marusya05 [52]
Managing because it's non profit
4 0
4 years ago
"when buying or selling a futures contract, the trader commits what amount of funds"
Nadusha1986 [10]
When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made. 
8 0
3 years ago
When an account previously written off is collected in full, which is required to ensure the accounting for the complete payment
Lyrx [107]

When a bad debt is written off, the thing that should be fine is an entry to reinstate the account receivable and and entry to record payment.

<h3>What is a bad debt?</h3>

A bad debt simply means an uncollectible account expense that's unlikely to be paid by a debtor.

When an account previously written off is collected in full, to ensure the accounting for the complete payment history of the customer, it's important to reinstate the account receivable and and entry to record payment.

Learn more about bad debt on:

brainly.com/question/24871617

4 0
3 years ago
Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then
satela [25.4K]

Answer:

<u>Transaction 1</u>

Assets - Decrease by $225,000

Cash expended to acquire shares = 5,000 * 45 = $225,000

Liabilities - No effect

Stockholders' equity - Decrease by $225,000

Increase in Treasury shares leads to decrease in the amount stockholders hold.

Paid In Capital - No effect

Retained Earnings - No Effect

Net Income - No Effect

<u>Transaction 2</u>

Assets - Increase by $98,000

Cash increased because of sale of stock = 2,000 * 49 = $98,000

Liabilities - No effect

Stockholders' equity - Increase by $90,000

= 2,000 * 45 = $90,000

Cost method means that when debiting from Treasury account, use original cost.

Paid In Capital - Increase by $8,000

If stock is sold for amount different from what it was bought, it goes into this account. If it is larger than it was bought for then this account increases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

<u>Transaction 3</u>

Assets - Increase by $20,000

Cash from sale of stock = 500 * 40 = $20,000

Liabilities - No effect

Stockholders' equity - Increase by $22,500

= 500 * 45 = $22,500

Paid In Capital - Decrease by $2,500

If stock is sold for amount different from what it was bought, it goes into this account. If it is smaller than it was bought for then this account decreases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

4 0
3 years ago
How to wear black formal shoes?
Sladkaya [172]

Answer:

Go in for a traditional shirt-jeans outfit and pair it with black formal shoes. A plaid shirt, pair of blue jeans and black dress shoes is how you'll want to rock it! Get that macho look right by wearing a leather jacket over a formal shirt and jeans. Your shoes will complement the jacket perfectly.

Explanation:

3 0
3 years ago
Read 2 more answers
Other questions:
  • Roger Rabbit Enterprises is considering whether to discontinue a division that generates a total contribution margin of $66,000
    6·1 answer
  • 2. Stock prices and stand-alone risk Risk is the potential for an investment to generate more than one return. A security that w
    5·1 answer
  • The point of maximum profit is the point at which the marginal cost equals the-
    6·1 answer
  • Dwjhbc,skugwhdcjgszhncdx ajhgcshanvcjut57725352371888886523e7yvhagayvx7565
    6·1 answer
  • Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down metho
    5·1 answer
  • Often, an organization makes a portion of its ________ accessible to external parties as its extranet.a. blog.b. inner firewall.
    12·1 answer
  • Why is saving, spending and investing important? long summary
    8·1 answer
  • Debit balance with Binod Rs. 50,000.​
    11·1 answer
  • The NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents includes prohibitions ag
    15·1 answer
  • Are employers required to provide training for mandated reporters.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!