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boyakko [2]
3 years ago
13

Swifty Company constructed a building at a cost of $2,266,000 and occupied it beginning in January 2001. It was estimated at tha

t time that its life would be 40 years, with no salvage value.
In January 2021, a new roof was installed at a cost of $309,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $164,800.
1. What amount of depreciation should have been charged annually from the years 2001 to 2020? (Assume straight-line depreciation.)
Business
1 answer:
statuscvo [17]3 years ago
7 0

Answer:

$56,650

Explanation:

Depreciation: The depreciation is an expense that shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement. It is a non-cash item that does not affect the cash balance.

The computation of the depreciation expense under the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($2,266,000 - $0) ÷ (40 years)

= ($2,266,000) ÷ (40 years)  

= $56,650

In this method, the depreciation is same for all the remaining useful life

All other information which is given is not relevant. Hence, ignored it

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Salma bought a new car by getting a loan from a bank. If she fails to pay back the loan, the bank will claim the car. In this sc
Alenkasestr [34]

The answer is collateral.

A valuable object is used as collateral to secure a loan.

Lenders' risk is reduced by collateral.

The lender has the right to sell the collateral if a borrower defaults on the loan in order to recover its losses.

Two examples of collateralized loans are mortgages and auto loans.

You can utilize other personal belongings, like a savings or investment account, to protect a collateralized personal loan.

The sort of loan frequently dictates the kind of collateral.

Your house serves as collateral when you take out a mortgage. If you obtain a car loan, the vehicle will serve as collateral.

Cars but only if they are fully paid off bank savings deposits, investment accounts, and other sorts of collateral are frequently accepted by lenders.

Retirement account collateral is typically not accepted.

Learn more about loans:

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8 0
1 year ago
Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the
umka21 [38]
Bank transaction fee
4 0
2 years ago
On January 1, 2021, Gundy Enterprises purchases an office building for $151,000, paying $41,000 down and borrowing the remaining
Nataly_w [17]

Answer:Gundy Enterprise journal $

Date

Jan 31 2021

Income statementl Dr 641.67

Mortage Interest. Cr. 641.67

Recognition of interest payable on mortgage loan for December 2021

Jan 31 2021

Mortgage principal Dr 635.52

Mortgage interest Dr. 641.67

Bank Cr. 1277.19

Narration.payment of principal and interest Interest due on mortgage loan as at January 31 2021.

Explanation:

The monthly installment payments of $1277.19 consist of both the principal sum and accompanying monthly interest.

The interest needs to be first recognized as an expenses into the income statement and increase in the mortgage loan. This will prevent an over deduction on the mortgage loan.

4 0
3 years ago
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct
Ghella [55]

Answer:

$0 cost or savings per unit

Explanation:

Cost to Buy

Purchase Price       $31.40

and,

Costs to Make

Direct materials        $9.10

Direct labor              $13.10

Variable overhead   $2.10

Fixed Overheads     $7.10

Total                        $31.40

therefore

The net incremental cost or savings of buying the component is $0 cost or savings per unit

5 0
3 years ago
( b ) explain five circumstances under which a high population growth may be desirable ​
statuscvo [17]

Answer:

There is a need to increase the demand in market for both goods and services.

There is a need to attract foreign investors

As societies modernize, mortality rates fall while birth rates remain high leading to high population growth rates.

Higher population growth may be beneficial in high-income countries where there is currently a tendency for population growth rates to decline

Development in agriculture, better techniques to grow more and better quality food.  Food available at all the times due to better storage conditions. So people do not die of starvation when food is not available.

Explanation:

7 0
2 years ago
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