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Stolb23 [73]
3 years ago
6

Nimo Co. purchased a machine for $12,000 and estimates it will use the machine for five-years with a $2,000 salvage value. Using

the double declining-balance depreciation method, compute the machine's first year depreciation expense.
Business
1 answer:
Gala2k [10]3 years ago
3 0

Answer:

$4800

Explanation:

Double declining deprecation method is when the deprecation expense of an asset is accelerated by 2. Depreciation is a method of expensing the cost of an asset.

In calculating depreciation expense using the double declining method , salvage value isn't used.

The formula:

2/ number of years ×(net book value)

2/5 × ($12,000) = $4800

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Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), sh
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3 years ago
Riley, age 16, and Samuel, age 36, enter into a contract in which Riley will sell Samuel his car for $11,000. The next day, Samu
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Explanation:

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3 years ago
Qwest Communications International, Inc. borrowed $499,000 on November 1, 2021, and signed a 12-month note bearing interest at 8
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Interest Payable - 2021 = $6653.33  rounded off to  6653

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The accrual principle in accounting requires the revenue and expenses for a period to be matched and recorded in their corresponding or respective periods. Thus, even though the interest on note will be paid at maturity in 2022, the interest expense related to the month of November 2021 and December 2021 will be recorded in the current year at 31 December as interest payable.

Interest Payable - 2021 = 499000 * 8% * 2/12

Interest Payable - 2021 = $6653.33  rounded off to  6653

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