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Nutka1998 [239]
3 years ago
12

Equipment costing $17,500 with an estimated salvage value of $1,180 and an estimated life of 4 years was purchased on October 31

, 2019. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019?
Business
1 answer:
svp [43]3 years ago
8 0

Answer:

the depreciation expense recorded is $680

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

= (Purchase cost - residual value) ÷ (estimated life)

= ($17,500 - $1,180) ÷ ( 4 years)

= $4,080

Now the 2 months depreciation is i.e. from November to December

= $4,080 × 2 months ÷ 12 months

= $680

Hence, the depreciation expense recorded is $680

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The correct answer to the following question will be "8%".

Explanation:

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After 1 years, we get

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⇒                     = \frac{100\times (1-(1+8 \ percent^{-4}))}{8 \ percent} +\frac{1000}{1+8 \ percent^{4}}

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3 years ago
The direct labor standards for a particular product are 4 hours of direct labor at $12.00 per direct labor-hour = $48.00. During
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Answer:

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  • Standard

4 direct labor-hours for 1 unit

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