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
Dahasolnce [82]
3 years ago
10

A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, 2008. It has an estimated useful l

ife of 5 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, 2008?Select one:a. $1,000.b. $1,333.c. $1,533.d. $4,000.e. $4,600.
Business
1 answer:
Maksim231197 [3]3 years ago
5 0

Answer:

B

Explanation:

The value to depreciate is always the total asset value minus the salvage value. In this case, $23,000-$3000=$20,000. The straight line method formula is:

Depreciation  = value to depreciate/useful years

Depreciation (year) = $20,000/5= $4,000

This formula calculates de depreciation expense each year from the purchase date, which means that on septemeber 1 of 2009 the company will register a depreciation expense of $4,000. But, from september 1,2008 to  December 31, 2008 is less than a year we have to calculate the depreciation for each month.

Depreciation (month)= $4,000/12= $333,33

But since that depreciation would be for december 1, we need to calculate the depreciation for each day

Depreciation (day) = $333,33/31 = $10,75

From september 1 to december 1: 3 months, then $333,333 x 3= $1000

And from december 1 to december 31: 30 days, then $10,75 x 30= $322, 58

The depreciation expense on December 31 is: $1000+$322,= $1322,58 that is almost $1,333. On January 1 the depreciation expense would be $1,333.

You might be interested in
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur
Bezzdna [24]

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock​"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

3 0
3 years ago
Collins Company borrowed $1,250,000 from BankTwo on January 1, 2016 in order to expand its mining capabilities. The five-year no
hoa [83]

Answer:

Collins Company must recognize $118,750 (which is annual interest paid on the capital) in its 2017 income statement as an expense item if the method of computing the interest is the flat rate method.

If it is reducing balance rate, then the amount deducted will equal $ 87,823

Explanation:

According to the principles of Financial Accounting, the interest portion of any loan must be entered as an expense item. The portion of the principal being paid back is recorded as part of the liability of the company in the period under consideration. It often goes by the term Loan Payable or Notes Payable.

Hence to arrive at the answers given above, you must note that the year in question is 2017 and that the loan took effect from January 2016.

When computing for interest payable, two methods may be used:

  1. Flat rate method: which requires that the interest rate applicable is computed on the capital and multiplied by the number of years the loan will run.

That is, $1,250,000 x 9.5% x 5 = Total Interest Rate Applicable.

= $593,750 so going by this method, the interest rate to be entered is

= $593, 750/5

= $118,750

   2. Reducing balance rate method: This requires the rate of interest to be applied each year succesievely having taken into account the capital which way paid in the previous year.

That is, [Initial Capital-Annual Payments] *9.5%

For year 2016, annual payment will be Zero. Given that the loan started in that year. In 2017 however, the annual payment will apply as shown below:

= [$1,250,000-$325,545] *9.5%

= $924, 455 * 9.5%

= $87,823 (approximately)

Cheers!

5 0
3 years ago
"what is unsolicited email that plagues employees at all levels and clogs email systems?"
Naddik [55]
Unsolicited email that plagues employees at all levels and clogs email systems is also known as spam. Spam emails are typically flooding everyone within the organization, with the same message and is usually something one would not choose to receive. The majority of spam emails that are sent out are commercial advertising which takes time away from receiving other necessary emails. 
4 0
3 years ago
Drag the tiles to the correct boxes to complete the pairs.
Sonbull [250]

Answers:

F h Garvey

Explanation:

Dfffd

4 0
2 years ago
Willingness to pay Group of answer choices measures the value that a buyer places on a good. is the amount a seller actually rec
gtnhenbr [62]

Answer:

measures the value that a buyer places on a good.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

Willingness to pay measures the value that a buyer places on a good or product. Thus, when this value is high, the customer would ultimately buy a product and vice-versa.

5 0
2 years ago
Other questions:
  • "judith supervises a call center department that receives stress-producing calls from unhappy customers. turnover has increased
    5·1 answer
  • Cheryl Peterson, a U.S.-based business executive, paid the equivalent of $20 to an official of the country of Murundi to expedit
    10·1 answer
  • A manufacturer with a product in the decline stage of the product life cycle would most likely decide to ________ if there is re
    6·1 answer
  • Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and
    8·1 answer
  • "When aggregate demand​ increases," A. the price level is likely to fall as GDP rises. B. aggregate supply will shift to the rig
    8·1 answer
  • Discuss at least one other type of source or document that would help you analyze the benefits and drawbacks of free enterprise.
    8·2 answers
  • A company had the following purchases and sales during its first month of operations: January 1 Purchased 10 units at $4.00 per
    5·1 answer
  • Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividen
    12·1 answer
  • Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect co
    13·1 answer
  • During production, the crew most closely associated with the camera consists of ________. a. the director and the production man
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!