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Keith_Richards [23]
3 years ago
13

On June 1, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated usefu

l life of 3 years and 30,000 hours, which ends on December 31. Using straight-line depreciation, calculate depreciation expense for the final (partial) year of service.(A) 40,000 (B) 17,500 (C) 30,000 (D) 12,500
Business
1 answer:
Alex_Xolod [135]3 years ago
7 0

Answer:

It is $30,000(C)

Explanation:

Depreciable cost = $90,000

Using straight-line method,

Annual depreciation = $90,000/3

                                  = $30,000.

Hence, depreciation expense at the final year of service is $30,000

We cannot make use of entire cost of equipment of $120,000 because it seemed the company wanted to sell its scrap value for  $30,000. Hence, this has been used to reduced it cost to $90,000 which is a depreciable cost .

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If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Current period +Ending inventory - Beginning inventory

Where,

Current period =7,000 units

Ending inventory=400 units

Beginning inventory =400 units

Let make plug in the formula above

Number of units =7,000 units + 400 units-400 units

Number of units =7,000 units

Therefore the Number of units will be 7,000 units

5 0
3 years ago
Joneen owns a farm. in a signed writing, joneen gave sue the irrevocable right to use a road on his farm so that sue could more
nadezda [96]
<span>Joneen gave Sue a cartway claim to access her own property across a portion of Joneen's property. This type of easement allows an individual to access their property via another, privately owned parcel for the purposes of accessing landlocked property.</span>
8 0
3 years ago
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.
nadezda [96]

Answer:

a. We have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. We have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Explanation:

a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.

Note: See part a of the attached excel file for the schedule that shows the computation of cash collections for June and July.

In the part a of the attached excel file, we have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.

Note: See part b of the attached excel file for cash budget for June and July.

In the cash budget in the attached excel file, the following calculations is made:

June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663

July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378

From the cash budget, we have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Download xlsx
7 0
2 years ago
Control involves _____________, by definition.
anygoal [31]
D I think is correct answer.
6 0
3 years ago
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected
son4ous [18]

Answer:

Correct option is (D)

Explanation:

Given:

Purchase price of copyright = $50,000

Expected useful life = 5 years

Annual depreciation expense as per straight line method:

= Purchase price ÷ useful life

= 50,000 ÷ 5

= $10,000

Only useful life is considered and not legal life.

Carrying value of asset at the end of year = Book value of asset - annual depreciation

Carrying value of copyright at then end of first year = 50,000 - 10,000 = $40,000

Carrying value of copyright at then end of second year = 40,000 - 10,000 = $30,000

5 0
3 years ago
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