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damaskus [11]
3 years ago
11

An asset has an adjusted cost basis of $2,400 with a $600 salvage value at the end of its depreciable life of 8 years. Using str

aight-line (SL) method, please find the annual depreciation dk. Please only fill in the number of your calculated result in the blank, e.g., if the result is $100, fill in "100"; also round to the nearest integer.
Business
1 answer:
Bingel [31]3 years ago
8 0

Answer:

depreciation per year: 225

Explanation:

straight-line depreciation: the depreciation expense will be equally distributed over the assets life.

Also, we must remember that we can only depreciate for the difference between the csot adn the salvage value.

<u>The formula for annual depreciation expense is:</u>

\frac{cost - salvage \: value}{useful \: life}

2,400 - 600 = 1,800 amount subject to depreciaiton

1,800 / 8 = 225

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2 years ago
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Andre45 [30]

Answer and Explanation:

for Accounts Receivable. At year-end, the L. Cole Company has completed services of $23,500 for a client, but the client has not yet been billed for those services:

accounts receivable is debited and service revenue is credited for $23,500 because the company has provided service to customer and so company would recognize revenue by crediting service revenue for increase in revenue and since the payment is not yet made accounts receivable being asset is debited for increase in balance.

for Interest Receivable. At year-end, the company has earned, but not yet recorded, $570 of interest earned from its investments in government bonds:

interest receivable is debited and interest income is credited for $570 because the company has earned interest and so interest is income for the company and so interest income is credited for increase in revenue. The interest is yet to be received by the company and therefore interest receivable being asset is debited for increase in balance.

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6 0
3 years ago
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lbvjy [14]
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Option A is correct

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3 years ago
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