Answer:
$7,326
Explanation:
Double Decline Balance = 2 x SLDP x SLDBV
where,
SLDP = Straight Line Depreciation Percentage
= 100 ÷ useful life
= 100 ÷ 20
= 5 %
and
SLDBV = Straight Line Percentage Book Value
Year 1
Double Decline Balance = 2 x 5% x $81,400
= $8,140
Year 2
Double Decline Balance = 2 x 5% x ($81,400 - $8,140)
= $7,326
Therefore
The machine's second-year depreciation using the double-declining balance method is $7,326.
Answer:
58.81% annual
or 3.93% monthly
Explanation:
Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:
effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%
Answer: c. $20,000
Explanation:
The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,
Loss on realization = Total Capital Balances after payment of liabilities minus - balance
Slotting in the figures therefore we have,
Loss on realization = $40,000 + $70,000 - $80,000
= $30,000 was the total loss on Realization
Seeing as Antonio and Barbara are partners who share income in the ratio of 1:2 we allocate to Barbara as follows,
Barbara = $30,000 * 2/(1+2)
= $20,000
Therefore option C is correct.
