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scZoUnD [109]
3 years ago
10

On January 1, 20X2, X Company made modifications to an asset used in its manufacturing operations in order to extend its useful

life. The asset had an original cost of $30,000 and accumulated depreciation of $12,000, with a remaining useful life of 5 years. As a result of the modification, which cost $6,000, the remaining useful life was increased to 8 years. If X Company uses straight-line depreciation, in 20X2, X Company:
Will recognize repairs and maintenance expense of $6,000 and depreciation expense of $2,250.
Will recognize repairs and maintenance expense of $6,000 and depreciation expense of $3,600.
Will capitalize the cost of the modification and will recognize depreciation expense of $3,000.
Will capitalize the cost of the modification and will recognize depreciation expense of $4,800.
Business
1 answer:
qwelly [4]3 years ago
7 0

Answer:

Will capitalize the cost of the modification and will recognize depreciation expense of $3,000.

Explanation:

Provided information, we have the following details.

Original value of asset = $30,000

Accumulated depreciation = $12,000

Therefore carrying value of asset = $30,000 - $12,000 = $18,000

Remaining life of asset = 5 years

When an additional modification is done, cost of modification = $6,000

Revised life of machine due to modification = 8 years

Thus, the modification cost will also be capitalized.

Depreciation each year = ($18,000 + $6,000)/8 = $3,000 each year.

Therefore, correct option is

c. Will capitalize cost of repairs and will charge depreciation of $3,000 each year

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Answer:

cross price elasticity of demand = 1.8

Explanation:

cross price elasticity of demand = % change in quantity of X / % change in price of Y

cross price elasticity of demand = 9% / 5% = 1.8

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3 years ago
The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and administrative.
yuradex [85]

The preparation of the necessary journal entries for The Fine Art Museum is as follows:

<u>Journal Entries</u>:

a. Debit Cash $500,000

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Credit Admissions Fees $250,000

  • To record the receipt of special admissions fees for "Friends of the Museum."

c. Debit Salary Expense $250,000

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Credit Cash $190,000

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d. Debit Operating Expenses $400,000

Credit Operating Expenses Payable $30,000

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Debit Supplies $50,000

Credit Operating Expenses $50,000

  • To transfer operating expenses to Supplies.

Debit Supplies Expense $30,000

Credit Supplies $30,000

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e. Debit Pledges Receivable $200,000

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Credit Pledges Receivable $150,000

Credit Allowance for Uncollectible Pledges $30,000

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Data Analysis:

Allocation of Expenses:

Programs = 80%

General and Administrative = 20%

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The current value of a zero-coupon bond is $481.658412.

<h3>What is a zero-coupon bond?</h3>
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To find the current value of a zero-coupon bond:

First, divide 11 percent by 100 to get 0.11.

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Second, add 1 to 0.11 to get 1.11.

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Third, raise 1.11 to the seventh power to get 2.07616015.

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Divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $481.658412.

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