Some people outside the United States say teens exposed to large doses of U.S. culture on MTV will identify less with their own
1 answer:
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Answer:
B) Debit to accumulated depreciation for $22,500.
Explanation:
As for the information provided,
Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.
Depreciation for 4 years = $5,000 4 = $20,000
Depreciation in 5th year for 6 months = $5,000/2 = $2,500
Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500
Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500
Sale price = $20,000
Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500
So therefore, there is loss of $2,500
Thus, option c and option d are invalid.
Further cash received on sale is debited and not credited thus, option a is also invalid.
As the total accumulated depreciation = $22,500
The correct entry will include debit to accumulated depreciation of $22,500.
Thus, option b is correct.
Answer:
correct option is $13,000
Explanation:
given data
leases office = $7,000 per month
Phoenix incurs = $65,000
yield benefits = 8 years
remaining on its lease = 5 years
solution
we know that The cost of leasehold improvement is depreciate whichever is less
(a) Remaining Lease Term
(b) estimated useful life of improvement
so Annual depreciation of Leasehold Improvement will be here
Annual depreciation of Leasehold Improvement =
Annual depreciation of Leasehold Improvement = $13,000
so correct option is $13,000