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mart [117]
2 years ago
7

Carson Company purchased a depreciable asset for $280,000. The estimated salvage value is $14,000, and the estimated useful life

is 10,000 hours. Carson used the asset for 1,500 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset?
26,600

39,900

44,100

266,000
Business
1 answer:
sergij07 [2.7K]2 years ago
3 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Carson Company purchased a depreciable asset for $280,000. The estimated salvage value is $14,000, and the estimated useful life is 10,000 hours. Carson used the asset for 1,500 hours in the current year. The activity method will be used for depreciation.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(280,000 - 14,000)/10,000]*1,500= $39,900

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Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for
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Answer:

Obtain a deficiency judgment against Drew for the amount owed.

Explanation:

Even though Hale repossessed the computer, it must still seek a deficiency judgment against Drew in order to recover the money owed. If Drew cannot pay his debt, he has the right to request Hale to sell the computer in order for Hale to recover the money owed.  

Repossession is one way that a lender can use to reclaim property that was put as collateral for a loan. For example, if you do not pay your car loan, the lender can simply repossess your car by taking it away without a court order. But the debtor still had the right to try to reclaim the property by paying the debt or agreeing on some type of payment procedure.

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A​ company's employee database includes each​ employee's compensation. ​a) is this variable discrete or​ continuous? ​b) what ar
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Part a)

An employees compensation is a continuous variable because it can take fractional values.

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3 years ago
Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $
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Answer:

The answer is: There was no consumer surplus in this situation.

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In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

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3 years ago
Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage buildi
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Answer:

a) the journal entry to record the signing of the lease agreement:

December 31, 2019, lease agreement signed

Dr Right of use 483,360

   Cr Lease liability 483,360

the lease liability must record the present value of the 10 annual lease payments: $68,099 and 8% discount rate:

present value of an annuity due = payment + {payment x [1 - (1 + r)⁻⁽ⁿ⁻¹⁾]/r}

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PV annuity due = 66,699 + {66,699 x [1 - (1 + 0.08)⁻⁹]/0.08} = 66,699 + 416,661 = $483,360

the journal entries to record the annual lease payments:

December 31, 2019, first annual lease payment

Dr Lease liability 66,699

   Cr Cash 66,699

December 31, 2020, second annual lease payment

Dr Lease liability 33,366

Dr Interest expense 33,333

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interest expense = $416,661 x 8% = $33,333

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Dr Depreciation expense - leased building 48,336

   Cr Accumulated depreciation - leased building 48,336

December 31, 2021, third annual lease payment

Dr Lease liability 36,035

Dr Interest expense 30,664

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interest expense = $383,295 x 8% = $30,664

December 31, 2021, depreciation expense

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   Cr Accumulated depreciation - leased building 48,336

b) this would increase the right to use asset and lease liability by:

= -$5,000 + $1,000 = $4,000

c) this would increase the right to use asset and lease liability by:

= 5,000 + {5,000 x [1 - (1 + 0.08)⁻⁹]/0.08} = $36,234

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