(5,2)(1,0)
slope = (0 - 2) / (1 - 5) = -2 / -4 = 1/2 <===
Monthly depreciation is calculated as follows:
65,000 (Cost) – 5,000 (Salvage Value) ÷ 60 (5 years X 12 months per year) = 1,000 in depreciation per month.
a) Accumulated depreciation from 1/1/12 to 1/1/15 is 36,000 (12 months for 2012, 2013, & 2014).
Assuming that sale was a Cash sale, the journal entry would look like this:
1/1/15
Cash (DR) 31,000
Accumulated Depreciation (DR) 36,000
Equipment (CR) 65,000
Gain on Sale of Equipment (CR) 2,000
b) Accumulated depreciation from 1/1/12 to 5/1/15 is 40,000 (12 months for 2012, 2013, 2014, & 4 months for 2015).
Assuming that sale was a Cash sale, the journal entry would look like this:
5/1/15
Cash (DR) 31,000
Accumulated Depreciation (DR) 40,000
Equipment (CR) 65,000
Gain on Sale of Equipment (CR) 6,000
c) Accumulated depreciation from 1/1/12 to 1/1/15 is 36,000 (12 months for 2012, 2013, & 2014).
Assuming that sale was a Cash sale, the journal entry would look like this:
1/1/15
Cash (DR) 11,000
Accumulated Depreciation (DR) 36,000
Loss on Sale of Equipment (DR) 18,000
Equipment (CR) 65,000
d) Accumulated depreciation from 1/1/12 to 10/1/15 is 45,000 (12 months for 2012, 2013, 2014, & 9 months for 2015).
Assuming that sale was a Cash sale, the journal entry would look like this:
10/1/15
Cash (DR) 11,000
Accumulated Depreciation (DR) 45,000
Loss on Sale of Equipment (DR) 9,000
Equipment (CR) 65,000
Not my answers, but I hope this will help you. :)
Answer:
(a). $20,000
(b). The estimate will be lower than the actual amount.
Step-by-step explanation:
We have been given that Michael saves $423 dollars a month for college.
(a). We know that 1 year equals 12 months.
4 years = 4*12 months = 48 months.
Since we are asked to find the estimated amount of money Michael will save in 4 years, so we will estimate both quantities as:
Therefore, Michael will save approximately $20,000 in 4 years.
(b).
The estimate will be lower than the actual amount as we rounded $423 down $23 to nearest hundred that is $400 and rounded 48 up 2 to nearest ten that is 40.
Therefore, the estimate will be lower than the actual amount.
