1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katyanochek1 [597]
3 years ago
6

On January 1, 2003, Lane, Inc. acquires equipment for $100,000 with an estimated ten‐year useful life. Lane estimates a $10,000

salvage value and uses the straight‐line method of depreciation. During 2007, after its 2006 financial statements have been issued, Lane determines that, owing to obsolescence, this equipment's remaining useful life was only four more years and its salvage value would be $4,000. In Lane's December 31, 2007 balance sheet, what was the carrying amount of this asset?
Business
1 answer:
Rudiy273 years ago
7 0

Answer:

The carrying amount of this asset is $40,000

Explanation:

It is Important to note that Lane, Inc. uses the straight‐line method of depreciation

Therefore: Depreciation Expense is Calculated as :

(Cost of Asset - Salvage Value) / Number of Useful Life

<u>The 2007 event :</u>

<u>Before the Adjastment</u>

Depreciation Expense = ($100,000 - $10,000) / 10 years

                                       = $ 9,000

<u>Restate Depreciation at the beginning of the year in 2007</u>

Depreciation Expense = ($100,000 - $4,000) / 4 years

                                       = $ 24,000

<u>Carrying Amount of Equipment </u>

Cost of Equipment - 2003                             $100,000

<em>Less</em> Accumulated Depreciation

2003                                                                     ($9000)

2004                                                                     ($9000)

2005                                                                     ($9000)

2006                                                                     ($9000)

2007                                                                    ($24000)

Carrying Amount of Equipment                          $40,000

You might be interested in
A college professor's compensation package includes the total cost of a $325-per-month health insurance plan, the total cost of
Rzqust [24]
The correct answer to the qestion is this equation here:
$325 + $65 = $390 * 12= $4680+62000=$66680
8 0
3 years ago
Read 2 more answers
Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah
makkiz [27]

Answer:

PV= $90,990.39

Explanation:

Giving the following information:

Future value= $140,000

Number of periods= 5 years

Rate of return= 9%

<u>To calculate the price to pay today, we need to calculate the present value. We will use the following formula:</u>

PV= FV/(1+i)^n

PV= 140,000 / (1.09^5)

PV= $90,990.39

7 0
3 years ago
:- How might U.S. pharmaceutical companies and U.S. consumers benefit from the rise of the Indian pharmaceutical industry?
lesantik [10]

Answer:

Due to the rise of the India's pharmaceutical industry the US pharmaceutical companies benefit by the increase in volume of sales due to the low costs of imports.

The U.S. consumers benefited from rise in Indian pharmaceutical industries, because of lower cost medications, insurance, copays as well as out of pocket expenses and greater financial flexibility that offers pharmaceuticals developed at lower research and development (R&D) cost.

Explanation:

Due to the rise of the India's pharmaceutical industry the US pharmaceutical companies benefit by the increase in volume of sales due to the low costs of imports.

The U.S. consumers benefited from rise in Indian pharmaceutical industries, because of lower cost medications, insurance, copays as well as out of pocket expenses and greater financial flexibility that offers pharmaceuticals developed at lower research and development (R&D) cost.

The U.S. pharmaceutical companies have major benefits from India because the people from India see others inputs instead of the goals for themselves and America is seen as an individualistic culture and there is lower power distance in America due to the fact that everyone is created equal which is why within America, people often to seek their own personal goals instead of the good of others.

Furthermore America is more concerned about self while India seeks to help the world globally which is why two different counties have to adapt to policies and procedures to respect exporting trade rights and this policy is known as the World Trade Organization.

6 0
3 years ago
Dr. Bernanke argued two problems contributing to the financial crisis included:________.
nydimaria [60]

Answer:

D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.

Explanation:

Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.

4 0
3 years ago
What's the difference between current balance and available balance?
pickupchik [31]
Your current balance<span> is the amount of money in your account at the beginning of a business day. This amount does not include any pending deposits or withdrawals. Your </span>available balance<span> is your </span>current balance<span> minus any pending debit card purchases, automatic drafts, processing checks or other debits from your account</span>
5 0
3 years ago
Other questions:
  • Indigo Corporation purchased trading investment bonds for $55,000 at par. At December 31, Indigo received annual interest of $2,
    6·1 answer
  • Company is a management consulting firm. Last​ month, Pacific completed a consulting job for Client 76 and assigned total costs
    5·1 answer
  • Personal selling is especially needed for complex or new goods and services.​
    9·1 answer
  • The financial ratio measured as net income divided by sales is known as the firm's:
    7·1 answer
  • Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average inc
    9·1 answer
  • Many employees get a reality shock on their first day at work because ____.
    5·1 answer
  • Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140 each. Direct materials cost $22 per
    12·1 answer
  • A project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2
    11·1 answer
  • True or false: Controlling involves developing goals and preparing various budgets to achieve those goals.
    9·1 answer
  • What term is used to describe the practice of unloading materials from an incoming trucks or rail cars and loading these materia
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!