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
lapo4ka [179]
3 years ago
15

Fathom Company acquired a $50,000 machine on January 1, 2018. The machine is estimated to have a useful life of 5 years, and a r

esidual value of $5,000. For units-of-production depreciation purposes, the machine is expected to produce 500,000 units. If Fathom Company uses double-declining-balance depreciation, what is the depreciation expense in 2019
Business
1 answer:
MA_775_DIABLO [31]3 years ago
8 0

Answer:

$12,000

Explanation:

The double-declining method records a higher depreciable amount in the first years of asset life. It uses double the rate used in the straight-line method.

Using the double-declining method, the depreciation rate for Fathom will be  40 % ({1/5 x100 } )

first-year depreciation- 2018

=40/100 x $50,000

=0.4 x 50,000

=$20,000

Book value= $50,000- $20,000= $30,000

Second-year depreciation- 2019

= 40 % x 30,000

=0.4 x $30,000

=$12,000

By using the double-declining-balance depreciation amount for year two = $12,000

You might be interested in
How do you depreciate a building? ​
alexdok [17]

Answer:

depriciation..it is the process of deducting the total cost of something expensive you bought for your business

Explanation:

calculations...purchase price-salvage value=depricable cost

5 0
3 years ago
Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and
Damm [24]

Answer:

c. debit Investment-Evans Company Bonds, $100,000, and Interest Receivable $1,500; credit Cash $101,500

Explanation:

c. debit Investment-Evans Company Bonds, $100,000, and Interest Receivable $1,500; credit Cash $101,500

The interest is due on bonds of $ 100,00 so it is added to the total amount.

The other choices are incorrect as A does not account for interest due.

B does not indicate the amount of interest separately. D is wrong as interest is again deducted from the total of bonds also they are credited it is receivable not payable

3 0
3 years ago
E6-15 Allocating Transaction Price to Performance Obligations [LO 6-5] A company separately sells home security equipment and 12
Oliga [24]

Answer:

    Particulars                                                      Amount

1. Revenue allocated to the equipment              $330

   for each bundled sales

   {$990 * $280 / $280 + $560}

2. Revenue allocated to the service                    $660

   for each bundled sales

    {$990 * $560 / $280 + $560}

3. Sales revenue to be reported in income         $660

   statement

   

    Service revenue to be reported in                    $55

    income statement

     ($660/12)

7 0
3 years ago
Christina buys groceries every month from Target and rarely does much research on the products she buys. What is the marketing t
Neporo4naja [7]

People do have preference. Routine response behavior is the marketing term for this type of consumer behavior.

<h3>What is consumer behavior?</h3>

Consumer behavior is known to be the study of how people, customers, groups, etc., often select, buy, or use goods, and services to answer to their needs and wants.

Routine Response is also known as Programmed Behavior. Here one is buying low cost items and as such one do not need much search and decision effort.

Learn more about  consumer behavior from

brainly.com/question/1364759

5 0
3 years ago
On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50
Marrrta [24]

Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

4 0
3 years ago
Other questions:
  • Which ocean resource is currently not economically profitable to mine? gravel sand manganese nodules salt?
    7·2 answers
  • Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended
    7·1 answer
  • What should be the maximum spending if your gross income 2,400 per month
    9·1 answer
  • The _____ adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP).
    5·2 answers
  • Whether a buyer or a seller pays more of a commodity tax depends on:
    5·2 answers
  • Hey how do you earn money? If you even do.
    15·2 answers
  • if the federal reserve sells a treasury bond bank what will be the effect on the invest rate the bank charges its customer loan
    10·1 answer
  • Individuals with variations that make them best suited to their environment will, on average, be more likely to ________. indivi
    8·1 answer
  • Discuss FOUR ways in which SAA could benefit from proper long-term planning.
    12·1 answer
  • If you were running a marathon which type of muscle fibers.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!