Cumberland Co. sells $1,114 of merchandise to Hancock Co. for cash. Cumberland paid $779 for the merchandise. Under a perpetual
1 answer:
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Answer:
The expected spot rate of the Australian dollar in one year = 1.28 AUD per USD
Explanation:
The Current spot rate of Australian dollar against US Dollar
= AUD /USD
AUD per USD.
Inflation rate in Australia %
Inflation in the US %
Percentage change in Australian currency
%
Thus, the spot exchange rate of AUD 1 year from now will be
AUD per USD.
On December 31, 2022, the book value of the equipment comes out to be $36,840 with monthly depreciation of $620.
Option D is the correct answer.
<h3>What is meant by depreciation?</h3>Depreciation is a method that applies to tangible fixed assets where the fall in the value of an asset has been recorded.
Given values:
The purchase cost of equipment: $44,280
Monthly depreciation: $620
<u>Step-1</u> Computation of annual depreciation charges:
<u>Step-2</u> Computation of book value of the equipment at the year-end:
Therefore, when the company purchases equipment at $44,280 with annual depreciation is $7,440, then the equipment's book value comes out to be $36,840 at the year-end.
Learn more about the depreciation in the related link:
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