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8_murik_8 [283]
3 years ago
7

On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an e

stimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs, and only prepares adjustments at year-end. The adjusting entry needed on December 31 of the first year is:
A. Debit Depreciation Expense, $9,000; credit Accumulated Depreciation, $9,000.B. Debit Depreciation Expense, $9,000; credit Equipment, $9,000.C. Debit Depreciation Expense, $18,000; credit Accumulated Depreciation, $18,000.D. Debit Depreciation Expense, $18,000; credit Equipment, $18,000.E. Debit Depreciation Expense, $90,000; credit Accumulated Depreciation, $90,000.
Business
1 answer:
ExtremeBDS [4]3 years ago
3 0

Answer:

Option C is correct

Explanation:

Using straight line depreciation method we can calculate the annual depreciation of the machinery, which can be calculated from the following formula:

Straight Line Depreciation = (Cost - Salvage Value) / Useful value

Straight Line Depreciation = ($95000 - $5000) / 5 years life = $18,000

The double entry would be:

Dr Depreciation Expense $18,000

Cr Accumulated Depreciation $18,000

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WITCHER [35]

Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.

<h3>What is the cost of producing the switches?</h3>

This can be found as:

= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent

= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)

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If they bought the switches at $36, they would cost:

= 36 x 5,000

= $180,000

Its cheaper to buy by:

= 205,900 - 180,000

= $25,900

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7 0
2 years ago
A real estate loan where a homeowner receives monthly payments based on accumulated equity rather than a lump sum and is repaid
ivanzaharov [21]

Answer:

reverse annuity mortgage

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3 years ago
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<u><em>Adjudicative processes</em></u>, such as litigation or arbitration, in which a judge, jury or arbitrator determines the outcome.

<u><em>Consensual processes, </em></u>such as collaborative law, mediation, conciliation, or negotiation, in which the parties attempt to reach agreement.

In both of the above processes the parties most bind to the final decision conceived.

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