1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Genrish500 [490]
3 years ago
14

In 1993, Novak Company completed the construction of a building at a cost of $2,500,000 and first occupied it in January 1994. I

t was estimated that the building will have a useful life of 40 years and a salvage value of $76,000 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $625,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $25,000.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Required:
a. Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.
b. Compute the annual depreciation that would have been charged from 2004 through 2022.
Business
1 answer:
nadezda [96]3 years ago
7 0

Answer:

A. $60,600

B. $80,600

Explanation:

Depreciation expense for the year can be calculated as follows

Requirement A

Cost                             =2,500,000  

Less: Salvage value   =76,000  

Useful life                    = 40 years  

Annual depreciation from 1994 through 2003

Depreciation expense = (cost - salvage value ) / useful life

Depreciation expense = (2,500,000 - 76,000) / 40

Depreciation expense = $60,600 per year

Requirement B

Cost                                                       = 2,500,000

Add: Addition                                        = 625,000  

Total cost                                         = 3,125,000  

Less: Accumulated depreciation          = 606,000

Book value (3,125,000  - 606,000)      =2519000  

Less: Salvage value( 76000+25000 )   = 101,000  

Useful life                                                = 30 years

Annual depreciation = (cost - salvage value ) / useful life

Annual depreciation = (2519000 - 101000) / 30

Annual depreciation = $80,600

You might be interested in
Select the correct answer
irakobra [83]
I think it’s b chapter 10
3 0
2 years ago
How to archive older page on wayback archivemachine?
77julia77 [94]
I believe you have to search a URL of a website on the wayback machine search bar.

Then, you can browse the past-present years of how that website used to look like.

Hope this helps.
7 0
2 years ago
What is the first step in developing a promotional campaign?
kotykmax [81]
You're First step is promotional message it reaches your intended and targeted audience. plus you're message is understood by your audience and you're message also works for the recipients, and they soon take immediate action.

Hope This Helps!!!
3 0
3 years ago
Linda's health insurance plan requires that she have a physician that manages all of her healthcare. Linda, most likely, has wha
xxMikexx [17]

Linda has a Health Maintenance Organization (HMO) insurance plan.

Further Explanation:

Health Insurance plan:

Health insurance plan is a type of insurance plan where the insured party gets the coverage for the medical expenses incurred. Health insurance plan would reimburse for the medical treatment that is recorded in the contract between the insurance company and the insured party.

Health Maintenance Organization (HMO):

Health Maintenance Organization provides health plans to the individuals. HMO is a private or public organization that renders health services to its user or subscribers. Subscribers are the individuals who opt for HMO as a health insurance plan. HMO does not provide the health services directly to the user or subscribers. HMO provides the services through various medical insurance provider entities such as doctor, physician, specialist and clinic facility.

HMO subscribers pay periodic (Monthly, quarterly or yearly) premium to HMO. HMO pays the medical entities that are connected to it for providing the services to the individuals. It promotes the higher quality of health treatment for a lower premium.

HMO subscribers pay their periodic premium and get the medical services from the medical entities. The medical entities manage all the healthcare of the subscribers. HMO subscribers can take the medical services only from the contracted medical entities. An HMO subscriber chooses a primary care physician. HMO subscriber can seek medical assistance from the appointed primary care physician only. This physician manages all the healthcare services of the individual.

Linda’s insurance plan:

In the given case, Linda’s insurance plan requires her physician to manage all her health care.

Linda has a Health Maintenance Organization (HMO) health insurance plan. HMO states that the physician provided by the HMO would manage all the activities related to healthcare. The physician is a medical entity that has a contract with HMO to provide the medical assistance to the subscriber of the HMO insurance plan. HMO pays them to assist the subscribers and they manage all the healthcare of the subscribers.

<u>So the current insurance plan is a Health Maintenance Organization (HMO).</u>

Learn more:

1. Learn more about the percentage of costs method brainly.com/question/12960656

2. Learn more about the manufacturing cost brainly.com/question/10570313

3. Learn more about the cost allocation brainly.com/question/12960164

Answer details:

Grade: Senior School

Subject: Business Law

Chapter: Insurance

Keywords: Linda, Insurance plan, Healthcare, Physician, Health insurance, Insurance, Health Maintenance Organization, HMO, Insurance, Health insurance plan, Business law, Type of insurance plan.

8 0
2 years ago
Read 2 more answers
6. A company estimates that .6% of its products will fail after the original warranty period but within a 5-year warranty period
Nitella [24]

Answer:

The answer is: $57.30

Explanation:

To determine the expected value of each warranty policy that was sold, we can use the following formula:

expected value = policy price - (probability of failure x cost of replacement)

expected value = $60 - (0.6% x $450)

expected value = $60 - $2.70 = $57.30

4 0
3 years ago
Other questions:
  • How did many early marketers establish a degree of power with their brands?
    13·1 answer
  • Appropriation to retained earning is
    15·2 answers
  • Rank the following items from most liquid to least liquid:
    7·2 answers
  • You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o
    14·1 answer
  • Internal-operational communication is defined as:
    6·1 answer
  • Click this link to view O*NET’s Skills section for Film and Video Editors. Note that common skills are listed toward the top, an
    9·2 answers
  • Value Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The c
    15·1 answer
  • Required: Accounting equation Ans: assets, capital, liabilities SE-2. You are provided the following information: i. Commencemen
    10·1 answer
  • When you feel cold, you engage in behavior to reduce this unpleasant feeling, for example, by putting on your coat. This desire
    15·1 answer
  • when compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!