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anygoal [31]
3 years ago
5

Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual

value of $3,300. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300, and the total estimated useful life was changed to 12 years with the residual value unchanged. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method?
Business
1 answer:
GenaCL600 [577]3 years ago
7 0

Answer:

$3,160

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset .

Given that Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual value of $3,300,

Annual depreciation

= ($28,300 - $3,300)/10

= $2,500

At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300,

Net book value at the beginning of the eighth year (before overhauling)

= $28,300 - 7($2,500)

= $10,800

Capitalizing the overhaul cost,

Net book value at the beginning of the eighth year (after overhauling)

= $10,800 + $8,300

= $19,100

Given that the total estimated useful life was changed to 12 years with the residual value unchanged,

Depreciation for the eighth year

= ($19,100 - $3,300)/5

= $15,800/5

= $3,160

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To get a good grade.

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a. Long-term bonds have fewer risks than short-term bonds. b. Long-term bonds have more risks associated with them, and bring in
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Complete Question:

What are the benefits of a long-term bond over a short-term bond?

Answer:

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Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

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An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit
MatroZZZ [7]

Answer:

Required 1

<u>General Journal</u>

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

<em>Cash and Checks received as Donation Revenue</em>

<em />

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

<em>Wages to employee paid</em>

<em />

Note Payable $3,420 (debit)

Cash $3,420 (credit)

<em>Repayment of Short Term Loan</em>

<em />

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

<em>Purchase of Toys on cash and on credit</em>

<em />

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

<em>Donations revenue received in form of Toy Supplies</em>

Required 2

Net Income is $9,520

Explanation:

<u>Calculation of Charity’s preliminary net income.</u>

Donations Revenue ($8,500 + $4,020)  $12,520

Less Expenses :

Wages                                                       ($3,000)

Net Income/ (Loss)                                    $9,520

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