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3 years ago

Machinery was purchased for $340,000 on January 1, 2017. Freight charges amounted to $14,000 and

Business

1 answer:

Triss [41]3 years ago

4 0

Answer:

Correct answer is A, $133,600

Explanation:

First, let’s compute the capitalizable amount of an asset on January 1, 2017.

Cost of machinery $340,000 plus the freight charges of $14,000 and the installation cost of $40,000 equals $394,000. Capitalizable cost includes all expenses incurred in bringing the asset in to its usable stage.

Second, let’s compute the depreciation expense using straight line method in December 31, 2017.

(Cost of asset - salvage value) / life of an asset

($394,000 - $60,000) / 5 years = $66,800

Finally, we can now compute the accumulated depreciation as of December 31, 2018 by multiplying annual depreciation computed previously (January 1, 2017 to December 31, 2017) by 2.

So, $66,800 x 2 years (2017 & 2018) = $133,600

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Answer:

Duress 

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3 years ago

When designing a product, the style, uses, and other related marketing activities, marketers must: ensure they are culturally ac

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3 years ago

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec

Masteriza [31]

Given Information:

Per Unit 15,000 Units Per Year Direct materials $ 9 $135,000

Direct labor 11 165,000

Variable manufacturing overhead 2 30,000

Fixed manufacturing overhead, traceable 6* 90,000

Fixed manufacturing overhead, allocated 13 195,000

Total cost $41 $615,000

Solution:

Compute the total cost of making and buying the parts:

Make Buy

Cost of purchasing 0 525,000

(15,000*35)

Direct materials 135,000 0

Direct Labour 165000 0

Variable manufacturing overhead 30,000 0

Fixed manufacturing overhead 57240 0

-----------------------------------------------

Total Relevant cost 387,240 525,000

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3 years ago

Ethan founded and operated a lunch-only catering business, which specialized in providing fresh, delectable, eat-at-your-desk lu

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Answer:

Sole Proprietorship.

Explanation:

This is an example of a Sole Proprietorship. It is a form of business owned by one person . The owner provides the capital (usually not that large) , has unlimited liability in the business, and the life of the business depends on the existence of the owner; if he falls ill or passes away and there's no succession plan, the business would dissolve.

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3 years ago

A company buys an oil rig for $3,000,000 on January 1, 2018. The life of the rig is 10 years and the expected cost to dismantle

kherson [118]

Answer:

$346,266.00

Explanation:

The expense that should be recorded for 2018 as a result of the events is the depreciation charge plus the finance charge on the present of value of dismantling cost

depreciation=(cost of oil rig+present value of dismantling cost)/10 years

cost of oil rig is $3,000,000

present value of dismantling cost=$231,330

depreciation charge=($3,000,000+$231,330)/10=$323,133.00

finance charge=$231,330*10%=$23133

total expense=$23,133.00 +$323,133.00 =$346,266.00

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3 years ago