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
Naddik [55]
3 years ago
7

On January 1, Year 1, Li Company purchased an asset that cost $25,000. The asset had an expected useful life of five years and a

n estimated salvage value of $5,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $2,500. What is the amount of depreciation expense to be recognized during Year 4
Business
1 answer:
NeX [460]3 years ago
8 0

Answer:

Amount of depreciation expense =$5,250

Explanation:

Under the straight line method the same amount is charged as depreciation expense over the estimated useful life of the asset

Initial depreciation = cost - salvage value /number of years

= (25,000 -5000)/5

= 4000 per year

Accumulated depreciation for 4 years= 4000× 3 = 12,000

Revised depreciation = (25,000 -12,000 - 2500)/2

=$5250 per year

Amount of depreciation expense for year 4 =$5250

You might be interested in
If​ eHermes' supplier of​ self-driving vehicle chassis is able to reduce costs by having better data on both finished goods inve
Allushta [10]

Answer:

Linkages

Explanation:

Running a business is a difficult and competitive job to do and it requires tremendous internal and external effort to make it successful. Using linkages across the various processes of business helps to complete the job in time and sometimes it is also cost-efficient. Ehermes' is using linkages to improve the business process to effectively produce goods and services.

5 0
3 years ago
The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of ope
vitfil [10]

Answer:

Note: See attached excel file for the record of the effect of the given transactions in a horizontal statements model.

In the attached excel file, we have:

Assets = Liabilities + Stockholders' Equity = $152,155

Explanation:

In the attached excel file, we have:

Sales tax payable on sales for November Year 1 = $65,500 * 9% = $5,895

Sales tax payable on sales for December Year 1 = $79,500 * 9% = $7,155

Assets = $152,155

Liabilities + Stockholders' Equity = $7,155 + $145,000 = $152,155

Therefore, the accounting equation is proved as follows:

Assets = Liabilities + Stockholders' Equity = $152,155

Download xlsx
6 0
3 years ago
True or false the risk premium is primarily concerned with business risk, financial risk, and inflation risk.
Nikitich [7]
The answer is true .
7 0
3 years ago
Your portfolio has three asset classes. U.S. government​ T-bills account for 47​% of the​ portfolio, large-company stocks consti
Katena32 [7]

Answer:

Expected return of the​ portfolio = 8.57%

Explanation:

The expected return of the portfolio is the weighted average return of all assets in that portfolio, which is calculated as below:

The expected return of the portfolio = (Weight of U.S. government​ T-bills x Return of U.S. government​ T-bills) + (Weight of large-company stocks x Return of large-company stocks) +  (Weight of small-company stocks x Return of small-company stocks)

= 47% x 4.08% + 38% x 11.38% + 15% x 15.53% = 8.57%

3 0
3 years ago
Read 2 more answers
Accounts receivable $ 28,500 Long-term notes payable $ 23,000 Accounts payable 16,200 Office supplies 4,000 Buildings 51,000 Pre
Rus_ich [418]

Answer:

Chavez Company's current ratio = 2.202

Explanation:

CLASSIFYING THE BALANCE SHEET ACCOUNTS OF CHAVEZ COMPANY'S

CURRENT ASSETS – 44,040

• Cash 7,500

• Accounts receivable 28,500

• Prepaid insurance 4,040

• Office supplies 4,000

LONG-TERM ASSETS – 51,000

• Buildings 51,000

CURRENT LIABILITIES – 20,000

• Accounts payable 16,200

• Unearned services revenue 3,800

LONG-TERM LIABILITIES – 23,000

• Long-term notes payable 23,000

Current Ratio = Current Asset (CA) / Current Liabilities (CL)

Current Ratio = 44,040 / 20,000

Current Ratio = 2.202

7 0
3 years ago
Other questions:
  • What type of policy is President Obama referring to when he says, “More people spending more money means more businesses will be
    8·2 answers
  • A group of elderly men, whose government disability benefits are the sole source of income, is approached to consider an experim
    5·1 answer
  • A good time to Evaluate (the E in SMARTER) your long-term college or education goal would be __________
    12·2 answers
  • The opportunity cost of earning an advanced collage degree is that
    8·1 answer
  • An _____________ is a probable economic benefit obtained or controlled by a particular entity as a result of past transactions o
    10·1 answer
  • Discontinue a Segment Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expense
    11·1 answer
  • At the end of 2021, Larkspur Co. has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200. On Janua
    10·1 answer
  • These are selected 2017 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $79,500. The copyright has a useful
    8·1 answer
  • Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or (c) constraint.
    9·1 answer
  • Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!