Answer:
The question is calculating the depreciation expense using straight-line method for 2018 and 2019?
Depreciation expenses for 2018: $725;
Depreciation expenses for 2019: $2,900.
Explanation:
We have yearly depreciation expenses is calculated as:
Yearly Depreciation expense = (Original cost - Salvage value) / Useful life = (19,500 - 2,100) /6 = $2,900.
For 2019, depreciation expense is recorded for the full-year at $2,900.
For 2018, depreciation expense is recorded for only three months ( as delivery truck was bought on Oct 1st 2018), which is calculated as: Yearly Depreciation expense / 12 * 3 = $725.
So, the answer is:
Depreciation expenses for 2018: $725;
Depreciation expenses for 2019: $2,900.
Answer:
The correct answer is letter "D": The senior should have aided the new auditor in formulating a plan for accumulating appropriate evidence.
Explanation:
For ethical and professional purposes, every time a piece of information is not clear several facts must be collected to complete the vague idea. In Auditing as in any other profession, the evidence must be gathered to confirm the company being audited is not committing fraud or forbidden practices.
Thus, in the example, the senior auditor should have helped the inexperienced editor in coming up with a plan to collect enough information about the budget difference. If that was not successful, they could have stopped the auditing until they received clarification of the situation.
Answer:
Yes, it should be purchased
Explanation:
The computation is shown below;
Net present value = $9,000 ÷ 1.12 + $7,000 ÷ 1.12^2 + $5,000 ÷ 1.12^3 + $3,000 ÷ 1.12^4 - $14,000
= $5,081.53
As we can see that the net present value comes in positive so sigma should purchased the digger
Therefore the same would be considered and relevant