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LUCKY_DIMON [66]
3 years ago
7

Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company estimates the equip

ment will have a residual value of $25,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:
Year Hours Used
1 3,000
2 2,000
3 1,200
4 2,800

Required:
Prepare a depreciation schedule for four years using the straight-line method.
Business
1 answer:
Zina [86]3 years ago
5 0

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $100,000

Salvage value= $25,000

Useful life= 4 years

<u>To calculate the annual depreciation, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (100,000 - 25,000) / 4

Annual depreciation= $18,750

<u>Year 1:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750

Book value= 100,000 - 18,750= 81,250

<u>Year 2:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*2= 37,500

Book value= 100,000 - 37,500= 62,500

<u>Year 3:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*3= 56,250

Book value= 100,000 - 56,250= 43,750

<u>Year 4:</u>

Annual depreciation= 18,750

Accumulated depreciation= 18,750*4= 75,000

Book value= 100,000 - 75,000= 25,000

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Answer:

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for retail companys they determinate the cost using a given inventory method like FIFO LIFO or weighted average.

Manufacturing companies will subtract from the sales revenue the cost of good manufactured which can be determinated in various ways like process, order, absorption or ABC

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Answer:

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8 0
3 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
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Answer:

the intrinsic value of the stock is $60

Explanation:

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But before that the cost of equity is

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= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

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