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cupoosta [38]
3 years ago
9

A company purchased a computer system at a cost of $24,000. The estimated useful life is 6 years, and the estimated residual val

ue is $9,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)
Business
1 answer:
max2010maxim [7]3 years ago
7 0

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

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3 years ago
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3 years ago
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Semmy [17]

Answer:

b. 10,000.

Explanation:

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\begin{array}{ccc}Starting\ n^o\ of\ units&3,000\\Units\ started\ in\ April&11,000\\Units\ not\ completed\ in\ April&(4,000)\\Units\ completed\ in\ April&10,000\end{array}

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4 years ago
Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
Irina-Kira [14]

Answer:

present value = $8396.19

Explanation:

given data

cash flow = $10,000

rate r = 6 %

time period t = 3 years

to find out

present value of the note  

 

solution

we get here present value that is expressed  as

present value =   \frac{cash\ flow}{(1+r)^t}     ....................1

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