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mrs_skeptik [129]
3 years ago
10

Sheridan Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo

yee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Year Straight-Line Sum-of-the- Years'-Digits Double-Declining- Balance
1 $10,260 $17,100 $22,800
2 10,260 13,680 13,680
3 10,260 10,260 8,208
4 10,260 6,840 4,925
5 10,260 3,420 1,687
Total $51,300 $51,300 $51,300
Answer the following questions.Part A: What is the cost of the asset being depreciated? Part B: What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Business
1 answer:
Artist 52 [7]3 years ago
8 0

Answer:

A. The cost of asset being depreciated is $57,000

B.The amount of salvage value is $5,700

Explanation:

Among the above-mentioned methods of depreciation, the only method that never consider salvage value on its computation of depreciation expense is the double declining method. So let’s use this method to work back the exact amount depreciable amount of an asset.

Formula : 100% / life of an asset x 2

100% / 5 x 2 = 40%

Y1 = $22,800/40 = 57,000

so to check if the amount is correct, let’s do the computation of 5-year depreciation.

Y1 57,000 x 40% = 22,800 (same as the given data)

Y2 (57,000 - 22,800) x 40% =13,680

Y3 (57,000 - 22,800 - 13,680) x 40% = 8,208

Y4 (57,000-22,800 - 13,680 - 8,208) x 40% = 4,925

Y5 (57,000 -22,800 - 13,680 - 8,208 - 4,925) x 40% = 1,687* (adjusted based on the depreciable amount)

B. To compute the salvage value, we simply deduct the total depreciation from the cost of an asset.

57,000 - 51,300 = 5,700

To check:

(57,000 - 5,700) / 5 years = 10,260

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Primary data collection for a gaming software company could include the following methods except: Group of answer choices A Surv
NemiM [27]

Answer:

A gaming software report from Gartner Group, a market research firm

Explanation:

Primary data collection is when data is collected through first hand research.

Primary data collection methods include

  1. Surveys : this can take the form of questionnaires (including online questionnaires e.g. survey monkey
  2. Interviews : this includes focus group interviews and interviewing customers

Advantages of primary data collection

  1. Directly addresses the reason for data collection
  2. Provides unique insight that might be unavailable elsewhere

Disadvantages of primary data collection

  1. It can be expensive
  2. it can be time consuming compared to other methods

Secondary data collection is collecting data that has already been collected in the past e.g. A gaming software report from Gartner Group, a market research firm

3 0
3 years ago
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The b
Cerrena [4.2K]

Answer:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

Explanation:

The journal entry is given below

Insurance expense A/c Dr $2,400

        To Prepaid Insurance $2,400

(Being insurance expense is recorded)

The computation is shown below:

= Insurance premium ÷ number of months × required months

= $4,800 ÷ 4 months × 2 months

= $2,400 months

The 2 months is taken from November 1 to December 31

6 0
3 years ago
Suppose Kenji decides to buy 100 shares of NanoSpeck stock.Which of the following statements are correct? A) The price of his sh
Ivahew [28]

Answer:

A) The price of his shares will rise if NanoSpeck issues additional shares of stock.

C) Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Kenji's shares to decline.

Explanation:

if a demand for kanji's is more than its supply, the share prices increase. if the sellers of a particular stock are more than its buyers, the share price decreases. if the company is earning much profit, the share price will rise.

5 0
3 years ago
. Demand-pull inflation occurs when multiple choice 1 there is a negative GDP gap. there is a negative price gap. there are incr
Alexxandr [17]

When there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.

The Demand-pull inflation is the type of inflation experienced as a result of an imbalance in aggregate supply and demand, thus, the prices go up because of aggregate demand which outweighs the aggregate supply.

Therefore, the Option C is correct because when there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.

Learn more about this here

<em>brainly.com/question/18072639</em>

8 0
2 years ago
Tomas would like to know whether his new business will be profitable, how much financing he will need, and whether he will have
Crank

Answer:

Pro forma financial statements

Explanation:

The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.

By preparing a pro forma financial statement, Tomas will be able to estimate if his new business will be profitable or not, approximately how much financing he will need and estimate the future cash flows of his project.

3 0
3 years ago
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