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
erik [133]
3 years ago
12

The asset's book value is $70,000 on July 1, Year 3. On that date, management determines that the asset's salvage value should b

e $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:
a. $8,125.00
b. $7,375.00
c. $4,062.50
d. $3,750.00
e. $7,812.50

Business
1 answer:
Luden [163]3 years ago
8 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Asset's book value as on July 1, Year 3 = $70,000

Asset's salvage value = $5,000

Original estimate = $10,000

Depreciation for remaining year 3 (6 months) :

= [( Book value - Salvage value) ÷ (useful life - years passed)] × (6÷12)

= [($70,000 - $5,000) ÷ (10 - 2)] × (6÷12)

= ($65,000 ÷ 8) × (6 ÷ 12)

= $8,125 × 0.5

= $4062.5

Workings:

Years passed: as 2 years already passed.

One table is missing from this question, so I attached that table with the answer.

You might be interested in
At the beginning of Year 1, the company's inventory level was stated correctly. At the end of Year 1, inventory was overstated b
Furkat [3]

Answer:

$5,000 ; $2,550

Explanation:

The computation is shown below:

For net income in year 1

= Reported net income + overstated inventory amount

= $3,000 + $2,000

= $5,000

For net income in year 2

= Reported net income - understated inventory amount

= $3,000 - $450

= $2,550

Therefore, the net income in Year 1 and in Year 2 is $5,000 and $2,550 respectively.

5 0
3 years ago
Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea
astra-53 [7]

Answer:

$94,000

Explanation:

A local hardware store has explicit cost of $2 million per year

The implicit costs are $44,000 per year

The store earned an economic profit of $50,000 last year

Therefore, the store's accounting profit can be calculated as follows

Accounting profit = Implicit costs + economic profit

= $44,000 + $50,000

= $94,000

Hence the store's accounting profit is $94,000

3 0
3 years ago
On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6
Slav-nsk [51]

Answer:

23rd May

Dr Cash                                                          960,000

Cr Common stock                                        240,000

Cr Paid-in Capital - Common Stock            720,000

( to record the issuance of 80,000 common shares for cash)

6th July

Dr Cash                           900,000

Cr Preferred stock          900,000

( to record the issuance of 18,000 preferred shares for cash)

15th September

Dr Cash                                                   750,000

Cr Common stock                                  150,000

Cr Paid-in capital - Common Stock       600,000

( to record the issuance of 50,000 common shares for cash)

Explanation:

Working notes for each transactions:

* 23rd May:

Cash increases by: Amount of stocks issued * Price at issuance = 80,000 * 12 = $960,000

Common stock account increases by: Amount of stock issued * Stated value = 80,000 * 3 = 240,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 80,000 * 9 = $720,000

* 6th July:

Cash increases by: Amount of stocks issued * Price at issuance = 18,000 * 50 = $900,000

Preferred stock account increases by: Amount of stock issued * Par value = 18,000 * 50 = $900,000;

As shares are issued at par; no paid-in capital amount recorded.

* 15th September:

Cash increases by: Amount of stocks issued * Price at issuance = 50,000 * 15 = $750,000

Common stock account increases by: Amount of stock issued * Stated value = 50,000 * 3 = 150,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 50,000 * 12 = $600,000.

3 0
3 years ago
Uses benefit segmentation to target students who want to get an MBA degree while still working full-time would most likely focus
qwelly [4]

yes daddy   Explanation:

6 0
2 years ago
A first step when considering a career is to________.
Aleonysh [2.5K]
Your answer will d.have to know ypur interest
5 0
3 years ago
Read 2 more answers
Other questions:
  • The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes
    11·1 answer
  • Which of the following determines​ "when specific products will be​ made, when specific customer orders will be filled and what​
    15·1 answer
  • Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting,
    9·2 answers
  • Multiple Choice Question 115 Sunland Company sells MP3 players for $50 each. Variable costs are $40 per unit, and fixed costs to
    5·1 answer
  • assume that you provide your services in a company as its HR representative you must create the code of conduct manual for the c
    7·1 answer
  • How does a country’s GPD help you determine if it’s economy is strong or weak
    15·1 answer
  • You are working as a manager of a financial planning office where you require your employees to have a presence on social media.
    13·1 answer
  • Which of the following tips can help you avoid electrical
    7·1 answer
  • The intention of a price floor is to help producers by setting a higher than equilibrium price. What is one unintended consequen
    13·1 answer
  • Lance contracts with Herman to fix the brakes on his car. The agreed upon amount is $750. When Herman is fixing the brakes, he n
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!