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
Elis [28]
3 years ago
11

Perdue Company purchased equipment on October 1 for $55,060. The equipment was expected to have a useful life of three years, or

7,600 operating hours, and a residual value of $1,860. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,200 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Business
1 answer:
zhenek [66]3 years ago
5 0

Answer:

$13,300 for each of the four years

Unit of output

$9800

$18900

$16100

$8400

double declining

27530

13765

6882.5

3441.25

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

( $55,060 - $1,860) / 4 = $13,300 each year

Activity method based on hours worked = (hours worked that year / total hours of the machine) x  (Cost of asset - Salvage value)

( $55,060 - $1,860) / 7600 = 7

year 1 = 7 x 1400 = 9800

year 2 = 7 x 2700 = $18900

year 3 = 7 x 2300 = $16100

year 4 = 7 x 1200 = $8400

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2/4 = 0.5

Year 1 = $55,060 x 0.5 = 27530

book value =  $55,060 - 27530 = 27530

year 2 = 27530 x 0.5 = 13765

book value = 27530 - 13765 =  13765

year 3 =  13765 x 0.5 = 6882.50

You might be interested in
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro
Black_prince [1.1K]

Answer:

$28,600

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the net operating income/loss is the difference between the sales and the total costs.

The company's net operating income (loss)

= $42,300 + $94,700 -  $108,400

= $28,600

8 0
3 years ago
Matrix Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
Bad White [126]

Answer:

Check the explanation

Explanation:

Cash flow from operating activities:  

Net income                                                                     $116

Adjustment to reconcile net income to cash basis:  

Depreciation expense ($359+1-347)                              $13

Gain on sale of equipment                                              (14)

Decrease in account receivable (40-39)                         $1

Decrease in inventory (44-43)                                          $1

Increase in account payable (30-26)                               $4

Decrease in accrued liabilities (18-15)                              (3)

Decrease in income tax payable (40-39)                         (1)

Net cash flow from operating activities                           $117

5 0
3 years ago
What are 2004 pennies worth?
SVETLANKA909090 [29]
The answer is $20.40 
3 0
3 years ago
Suppose that 10 years ago you bought a home for $110,000, paying 10% as a down payment, and financing the rest at 8% interest fo
skad [1K]

Answer: $11,000

Explanation:

The solution to this problem is not tedious or complicated

Solution;

Amount is = $110,000

Percentage of down payment is given as = 10%

To get the amount of the down payments we find the 10% of $110,00

10% of $110,000 is = 10÷100

=0.1

We multiply it by the amount which is 0.1×110,000= $ 11,000

3 0
3 years ago
When president obama was elected, the u.S. Economy had slid into a recession. Consumer spending was low and getting worse. In an
Lesechka [4]

Answer: Keynesian Economic Theory

Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of <em>Keynesian Economic theory</em>.

8 0
3 years ago
Other questions:
  • 104. During 2017, Logan Corporation acquired a mineral mine for $4,000,000 of which $400,000 was ascribed to land value after th
    8·1 answer
  • Many personal care companies combine toothpaste with a toothbrush at a reduced price. this is an example of​ __________ pricing.
    14·1 answer
  • When a multinational firm decides to sell its products abroad, one of the risks the firm faces is that the government of the for
    13·1 answer
  • Which of the following statements is TRUE about payday loans? A. They are harder to pay back because of high fees and B. They ar
    7·2 answers
  • Which is an example of thinking at the margin? A. figuring out what you will give up and what you will gain by hiring a new work
    15·2 answers
  • What is the Internet?
    15·2 answers
  • Concord Corporation is planning to sell 500 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box o
    11·1 answer
  • The agreed cost of an item to be purchased by a business on credit is 4000. The applicable cost will be debited to advertising e
    9·1 answer
  • Dividing work among employees and applying motivational theories to increase employee satisfaction are the two components of job
    9·1 answer
  • Explain the importance of the primary sector and provide an example
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!