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Ierofanga [76]
3 years ago
11

Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundati

on and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be:
Business
1 answer:
Sever21 [200]3 years ago
7 0

Answer:

$29,400

Explanation:

Straight line depreciation expense = (cost of asset - Salvage value) / useful life

Cost of asset = $150,000 + $20,000 + $7,000 = $177,000

($177,000 - $30,000) / 5 = $29,400

I hope my answer helps you

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As the output is increased or decreased, these (B) fixed costs remain unchanged.

<h3>What are fixed costs?</h3>
  • Fixed costs, also known as indirect costs or overhead costs in accounting and economics, are corporate expenses that are independent of the volume of goods or services generated by the business.
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  2. Fixed cost refers to a cost that doesn't change when the number of goods produced increases or decreases.
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Therefore, as the output is increased or decreased, these (B) fixed costs remain unchanged.

Know more about fixed costs here:

brainly.com/question/3636923

#SPJ4

Complete question:

If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As the output is increased or decreased, these _______ costs remain unchanged.

a. dependent

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c. opportunity

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