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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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Answer:

m=$0.95

t=$1.15

Explanation:

Let m=cost of milk

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t+m=$2.10 (1)

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From (1)

t=$2.10-m

Sub into (2)

2($2.10-m)+3m=$5.15

$4.2-2m+3m=$5.15

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m=$5.15-$4.2

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Sub value of m into (1)

t+m=$2.10

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4 0
3 years ago
You take a sample of rents of 182 apartments in San Francisco and find that the mean rent is $4000 per month and the standard de
dedylja [7]

Answer:

89%

Explanation:

according to Chebyshev's theorem, for any k > 1, at least [1 - (1/k^2)] of the data will lie within k standard deviations of the mean.Therefore, Chebyshev's theorem formula can be given as follows:

Chebyshev's theorem formula =  1 - (1/k^2) ...................... (1)

In order to fing k, we proceed as follows:

1. Subtract the mean of rents from the larger rent value,

That is, $7,000 - $4,000 = $3,000

2. Divide the difference of $3,000 above by the standard deviation to obtain k as follows:

k = $3,000 ÷ $1000 = 3

3. Substitute 3 for k in equation (1) as follows:

Chebyshev's theorem formula =  1 - (1/3^2)

                                                   = 1 - (1/9)

                                                    = 1 - 0.11

                                                    = 0.89

If we multiply 0.89 by 100, we have 89%.

Therefore, 89% of the rents in the sample will fall between $1000 and $7000 per month.

6 0
3 years ago
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Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash
Sonbull [250]

Answer:

a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.

  • FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. Money is exchanged for a promissory note.

b. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.

  • REAL ASSET CREATED: when the software was developed, a real asset was created. Money was invested in developing the software.

c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,500 shares of Microsoft stock.

  • FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. A real asset was traded in exchange for financial assets.

d. Lanni sells the shares of stock for $50 per share and uses part of the proceeds to pay off the bank loan.

  • FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. When the money is paid back to the bank, the loan and the promissory note cease to exist.

a-1. Prepare its balance sheet just after it gets the bank loan.

Lanni Products

Balance Sheet

After it got the bank loan

Assets:

Cash $70,000

Computer equipment $30,000

Total assets $100,000

Liabilities:

Notes payable $50,000

Total liabilities $50,000

Shareholders's equity :

Paid in capital $50,000

Total shareholders's equity $50,000

Total liabilities and shareholders' equity $100,000

a-2. What is the ratio of real assets to total assets?

ratio of real assets to total assets = computer equipment / total assets = $30,000 / $100,000 = 30%

b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product.

Lanni Products

Balance Sheet

After it developed the software product

Assets:

Software $70,000

Computer equipment $30,000

Total assets $100,000

Liabilities:

Notes payable $50,000

Total liabilities $50,000

Shareholders's equity :

Paid in capital $50,000

Total shareholders's equity $50,000

Total liabilities and shareholders' equity $100,000

b-2. What is the ratio of real assets to total assets?

ratio of real assets to total assets = (software + computer equipment) / total assets = $100,000 / $100,000 = 100%

c-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft.

Lanni Products

Balance Sheet

After it sold the software product to Microsoft

Assets:

Shares of Microsoft $125,000

Computer equipment $30,000

Total assets $155,000

Liabilities:

Notes payable $50,000

Total liabilities $50,000

Shareholders's equity

Paid in capital $50,000

Retained earnings $55,000

Total shareholders's equity $105,000

Total liabilities and shareholders' equity $155,000

c-2. What is the ratio of real assets to total assets?

ratio of real assets to total assets = computer equipment / total assets = $30,000 / $155,000 = 19.35%

8 0
3 years ago
The town of Millbridge has just agreed to pay a pension for the town clerk. The pension will be $40,000 per year for the next 20
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The amount that must be put aside now is $458,796.85.

<h3>How much should be put aside now?</h3>

The first step is to determine the future value of the annuity:

Future value = yearly payment x annuity factor

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Where:

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$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65

Now, determine the present value of this amount:  $1,471,423.65 / (1.06^20) =$458,796.85

To learn more about present value, please check: brainly.com/question/26537392

4 0
1 year ago
Seller Janet delivers a disclosure statement to Buyer Amanda. Amanda reads it over and decides everything looks good enough to c
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Answer:

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Explanation:

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  2. Janet can correct the damage to the roof and tell Amanda nothing.
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