Answer:
The accumulated depreciation at 1 January 2019 = $425000
January 1, 2019
Accumulated Depreciation 425000 Dr
Cash 400000 Dr
Loss on disposal 95000 Dr
Machine 920000 Cr
Explanation:
The straight line method of depreciation charges a constant depreciation expense every year through out the estimated useful of the asset. The depreciation expense per year under this method is calculated as,
Depreciation expense per year = (Cost - Residual value) / estimated useful life of the asset
Depreciation expense per year = (920000 - 70000) / 8 = $106250 per year
The asset was used for four years from 2015 to 2018. Thus, the accumulated depreciation at 31 December 2018 is,
Accumulated depreciation - 31 Dec 2018 = 106250 * 4 = $425000
The Net book value of the asset at 31 December 2018 = 920000 - 425000 = $495000
The loss on disposal is = 495000 - 400000 = $95000
Answer:
The correct answer to the following question is Pro forma financial statements.
Explanation:
A subsequent event can be defined as an event which takes place after the reporting period, but before the financial statements of a company are issued. And depending on what kind of event they are like additional information or new events, it will be decided whether these events should be disclosed in a company's financial statement or not.
If it is decided that the subsequent event should be disclosed in the company's financial statement then a pro forma financial statement would be made, in which nature and financial effect of the subsequent event should be disclosed.
You may expect for the E-Labs project team to be able to perform stretch goals. A stretch goal is an extra objective you set for your battle in the event that you surpass your underlying subsidizing objective, and is, for the most part, used to fund another particular part of your venture. The extend objective was imparted to the group who was going to play a part with pushing their points of confinement past what was already accomplished. That can't be accomplished by incremental or little upgrades yet require stretching out oneself as far as possible to be realized.
