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Nady [450]
2 years ago
13

Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an estimated useful life of 1

0 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31, 20Y5.
a. Determine the depreciation for 20Y5 and for 20Y6 by the straight-line method.

Depreciation
20Y5 $ 900
20Y6 $ 3600
b. Determine the depreciation for 20Y5 and for 20Y6 by the double-declining-balance method.

Depreciation
20Y5 $
20Y6 $
Business
1 answer:
andreyandreev [35.5K]2 years ago
7 0

Answer:

a. Depreciation

20Y5 $900

20Y6 $3600

b. Depreciation

20Y5 $2,100

20Y6 $7,980

Explanation:

The computation of the depreciation expense for the second year is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($42,000 - $6,000) ÷ (10 years)

= ($36,000) ÷ (10 years)

= $3,600

In year 20Y5 the equipment is purchased on October 1 and we have to calculated till December 31. So, 3 months depreciation should be charged in year 1

= $3,600 × (3 months ÷ 12 months)

= $900

And in year 20Y6, the depreciation expense is $3,600

In this method, the depreciation is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= Percentage ÷ useful life

= 1 ÷ 10

= 10%

Now the rate is double So, 20%

In year 20Y5 , the original cost is $42,000, so the depreciation is $ 8,400 after applying the 50% depreciation rate. This is full month depreciation but we have to find for only 3 months.

So, $8,400 × (3 months ÷ 12 months)

= $2,100

And, in year 20Y6, the depreciation expense would be

=  ($42,000 - $2,100) × depreciation rate

= $39,900 ×20%

= $7,980

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Tonya, who lives in California, inherited a $100,000 State of California bond in 2020. Her marginal Federal tax rate is 35%, and
soldi70 [24.7K]

Answer: See explanation

Explanation:

The after-tax income from each bond is given below:

• California bond

This will be calculated as the inherited amount of California bond multiplied by the interest rate

= $100,000 × 3.30%

= $100,000 × 0.033

After tax interest revenue = $3300

Note that there are no deduction for Federal income, and California tax here.

• Corporate bond.

Inherited amount of corporate bond = $100,000

Multiply: Interest rate = 5.20%

Before tax interest revenue = ($100,000 × 5.20%) = $5,200

Less: Federal income tax = ($5,200 × 35%) = ($1,820)

Less: California tax = $5,200 × 5% = $260

Less: Federal tax benefit = ($260 × 35%) = $91

After tax interest revenue = $3,211

• U.S Government bond

Inherited amount of U.S. government bond = $100,000

Multiply: Interest rate = 4.60%

Before tax interest revenue = $4,600

Less: Federal income tax = $4,600 × 35% = $1,610

Less: California tax = $0

Less: Federal tax benefit on the state income tax paid = $0

After tax interest revenue = $4600 - $1610 = $2,990

3 0
3 years ago
________ refer to people in an organization's buying center who affect the buying decision; they often help define specification
joja [24]

Influencers refer to people in an organization's buying center who affect the buying decision; they often help define specifications and provide information for evaluating alternatives.

<h3><u>Explanation:</u></h3>

The term influencer refers to the persons who has the power in affecting the decisions related to the purchasing of any product. The decisions that are associated with the purchase made by other persons are influenced by the influencer because of the knowledge, authority, relationship or the position the has with the other person.

In the context of business and marketing, Influencers refers to those people who has the ability in affecting the purchasing or buying decisions. They influence the buying decisions of the audience by providing the information regarding the specifications definitions and also how to evaluate and choose among the different alternatives.

4 0
3 years ago
Beginning raw materials inventory $ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in
garik1379 [7]

Answer:

$58,600

Explanation:

Calculation for what Healey Company's direct materials used for the year is:

Using this formula

Direct materials used for the year=Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials

Let plug in the formula

Direct materials used for the year = $15,200 + $60,000 - $16,600

Direct materials used for the year= $58,600

Therefore Healey Company's direct materials used for the year is:$58,600

3 0
3 years ago
The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $9,000; D. Mai, Withdrawals $800
oksian1 [2.3K]

Answer: See explanation

Explanation:

The necessary closing entries from the available information at December 31 will be calculated thus:

1. Dec 31

Dr Services Revenue $13000

Cr Income Summary $13000

2. Dec 31

Dr Income Summary $10000

Cr Wages expense $8400

Cr Rent expense $1600

3. Dec 31

Dr Income Summary = $13000 - $10000 = $3000

Cr D. Mai, Capital $3000

4. Dec 31

Dr D. Mai, Capital $800

Cr D. Mai, Withdrawals $800

8 0
3 years ago
Faughn Corporation has provided the following data concerning manufacturing overhead for July:
creativ13 [48]

Answer: D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

Explanation:

The Manufacturing overhead applied is less than the actual manufacturing overhead incurred by:

= 79,000 - 69,000

= $10,000

Manufacturing overhead is therefore underapplied as the amount applied is too low to cover the amount incurred.

The Cost of Goods sold after closing out is:

= Cost of goods sold before closing out + Underapplied manufacturing overhead

= 243,000 + 10,000

= $253,000

6 0
3 years ago
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