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serg [7]
3 years ago
6

Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of 8 years has been depreciated using the straig

ht-line method for 2 years. Assuming a revised estimated total life of 6 years and no change in the salvage value, the depreciation expense for Year 3 would be
a. $10,500.
b. $9,333.
c. $14,000.
d. $7,000.
Business
2 answers:
Vlada [557]3 years ago
7 0

Answer:The answer is b

Explanation:

Cost - Salvage value /useful life

Cost =$70,000

Salvage value = $14,000

Useful life = 8years

Cost - Salvage value /useful life

70,000-14,000/8

= 56,000/8

=7000

Therefore yearly depreciation = $7,000

Provision for depreciation

Ist year cost - depreciation (70,000 - 7,000) = 63,000

2nd year cost - depreciation (63,000 - 7,000) = 56,000

Net Book value for the 3rd year = 56,000

Assuming a revised total life

= Net Book value /revised total life

= 56,000/6

= $9,333

Therefore depreciation expenses = $9,333

Shalnov [3]3 years ago
4 0

Answer:

depreciation expense =  $10500

correct option is a. $10,500

Explanation:

given data

Equipment costing  = $70,000

salvage value = $14,000

estimated life =  8 years

revised estimated total life = 6 years

to find out

depreciation expense

solution

we know that Depreciation expense per year is here express as

Depreciation expense =  (cost - Salvage value) ÷ useful life      ...................1

put here value we get

Depreciation expense  = \frac{70000 - 14000}{8}

Depreciation expense  = $7000 per year

so

book value as on beginning of year 3 is = 70000 - (7000 × 2)

book value as on beginning of year 3 is $56000

so

depreciation expense will be

depreciation expense =  \frac{56000 - 14000}{4}

depreciation expense =  $10500

correct option is a. $10,500

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Answer:

The difference in human capital explains $7,863 of the income per worker gap while the difference in physical capital explains $20,181 of the income per worker gap.

Explanation:

Human capital refers to the skills, knowledge, and efforts of the people in producing goods and services. It is also known simply as labor. Physical capital refers to the "man-made" goods that assist in production, including machinery, equipment, and technological items such as computers.

In the given scenario, the income per worker in the United States is $82,359 - $54,315 = $28,044 more than the income per worker in South Korea. This is explained by differences in both the level of technology (i.e. physical capital) and the capability of workers (i.e. human capital).

We are informed that the income per worker in South Korea would be $74,496 if it had the same level of technology as the United States. This means that $74,496 - $54,315 = $20,181 of the income per worker gap between the two countries is explained by differences in physical capital. Hence the remaining difference of $28,044 - $20,181 = $7,863 is explained by differences in human capital between the two countries.

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Answer:

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Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums
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3 years ago
The stockholders’ equity accounts of Indigo Corporation on January 1, 2017, were as follows.
Lubov Fominskaja [6]

Answer:

Indigo Corporation

Journal Entries:

Feb. 1:

Debit Cash Account with $60,000

Credit Common Stock with $40,000

Credit Additional Paid-in Capital with $20,000

To record the issue of 10,000 shares of common stock, par $4 at $6 each.

March 20:

Debit Treasury Stock with $8,000

Debit Additional Paid-in Capital with $6,000

Credit Cash Account with $14,000

To record the repurchase of 2,000 shares of treasury stock at $7 each.

October 1:

Debit Dividends - Preferred Stock with $35,000

Credit Dividends Payable with $35,000

To record preferred stock dividends declared.

November 1:

Debit Dividends Payable with $35,000

Credit Cash Account with $35,000

To record cash payment of dividends.

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Debit Dividends - Common Stock with $249,000

Credit Dividends Payable with $249,000

To record $0.50 per share common stock dividend.

December 31:

Debit Dividends Payable with $249,000

Credit Cash Account with $249,000

To record payment of dividend.

Debit Net Income with $550,000

Credit Retained Earnings with $550,000

To record the transfer of net income to Retained Earnings.

Explanation:

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c) Dividends on preferred stock was prorated for 10 months, from January to October.  This is because the percentage dividend is for a year.

d) Dividends on common stock would not be prorated since they are based on annual percentages like preferred stock.  Dividends on the common stock is, therefore, calculable on the outstanding balance.  

e) Treasury Stock is a contra account to the Common Stock as it reduces the balance of common stock outstanding.  The outstanding balance of Treasury Stock increased to 12,000 (10,000 + 2,000).

f) Outstanding common stock reduced from 500,000 shares to 498,000 (500,000 + 10,000 - 12,000).  The additional 10,000 represented the new issue and the 12,000 represented the Treasury Stock.

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