Answer:
(a) $880.23 and (b) $1526.84
Explanation:
Please see attachment .
Answer:
Straight-line
depreciation expense for 2016 =40350
depreciation expense for 2017 =40350
Double-declining-balance
depreciation expense for 2016 =105840
depreciation expense for 2017 =63504
Explanation:
Schedule of depreciation expense per year for the machine under the two depreciation methods is attached.
Original Value=264600
Residual Value=22500
Useful life=6
Straight-line
depreciation expense = (Original Value -Residual Value)/Useful life
depreciation expense = 40350
Double-declining-balance
Depreciation rate=1/useful life *100
Depreciation rate 20,00%
Answer:
Year 2= $3,333.33
Explanation:
Giving the following information:
A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.
To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*[(24,000 - 9,000)/6]= 5,000
Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33
Use the formula of the present value of an annuity ordinary.
The formula is
pv=pmt [(1-(1+r/k)^(-n))÷(r/k)]
Pv present value 350
PMT monthly payment 30
R interest rate 0.18
K compounded monthly 12
N number of months?
350=30 [(1-(1+0.18/12)^(-n))÷(0.18/12)]
Solve for n
350/30=[(1-(1+0.18/12)^(-n))÷(0.18/12)]
((350/30)×(0.18/12))-1=-(1+0.18/12)^(-n)
-0.825=-(1+0.18/12)^(-n)
0.825=(1+0.18/12)^(-n)
N=−log(0.825)÷log(1+0.18÷12)
N=12.9 months round your answer to get 13 months
Answer:
Explanation:
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