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grin007 [14]
3 years ago
9

Kansas Enterprises purchased equipment for $73,500 on January 1, 2021. The equipment is expected to have a five-year service lif

e, with a residual value of $6,450 at the end of five years. Using the double-declining balance method, depreciation expense for 2022 would be
Business
1 answer:
saveliy_v [14]3 years ago
3 0

Answer:

The answer is $17,640

Explanation:

Equipment was bought on Jan. 1, 2022 for $73,500. This is the historical cost of the asset.

Residual value is $6,450. This is the amount the equipment is being expected to sell for at the end of its useful life.

Useful life is 5 years.

To know the percentage to be used for the depreciation, we have:

100percent / 5 years

= 20 percent

Double-declining is 40 percent(20 percent x 2)

Depreciation for 2021 is

$73,500 x 40 percent

= $29,400.

Carrying amount at the end of 2021 which will also be for the beginning of 2022 is $44,100 ($73,500 - $29,400)

Depreciation for 2022:

$44,100 x 40 percent

$17,640.

Therefore, the depreciation for 2022 is $17,640.

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Answer:

C. $200 net loss

Explanation:

The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.

The hedging gain loss can be calculated as:

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$1.21 - 1.232 = 0.0232

6 0
3 years ago
Suppose the customer data analysis software used by ABC Bank is significantly changed, and its documentation is therefore revise
viva [34]

Based on the information given this type of maintenance is called a maintenance release.

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Software that are released often undergo a maintenance release so as  detect and fix any error or bug that was detected.

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6 0
2 years ago
If South Dakota's governor reports a budget surplus in 2011, that state government likely:
poizon [28]

The governor of South Dakota reports a budget surplus in 2011 and he states that the government received more taxes in the year than it spent in that year

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7 0
3 years ago
Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f
Furkat [3]

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and  Salvage value so we get depreciation cost  

depreciation cost is = 11000 - 1000 = 10000  

and

annual depreciation = 2000  

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

5 0
3 years ago
babysits on the weekends for extra money. Suppose that three neighbors with children are interested in paying Elizabeth to babys
kolbaska11 [484]

Answer:

$15

Explanation:

Consumer surplus is the price the consumer pay for good/service minus the amount the consumer is willing to pay for it.

✓Mr. and Dr. Brown would be willing to pay ​$31

✓Mr. Smith would be willing to pay ​$28

✓Professor Jones and Mr. Jones would be willing to pay ​$22

Elizabeth PRICE for babysitting each set of children for an evening = $22

Consumer surplus= Σ (price that the consumer is willing to pay- Price of the good/service is sold)

= [(31-22)+(28-22)+(22-22)]

= 9+6+0

=$15

Hence, Consumer surplus is $15

8 0
3 years ago
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