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Sergeeva-Olga [200]
3 years ago
5

Martinez Corporation purchased machinery on January 1, 2022, at a cost of $268,000. The estimated useful life of the machinery i

s 4 years, with an estimated salvage value at the end of that period of $31,800. The company is considering different depreciation methods that could be used for financial reporting purposes.
(SEE PICTURE)

Business
1 answer:
Olegator [25]3 years ago
5 0

Answer:

see below

Explanation:

1. Depreciation using the straight-line method.

Under the straight-line method, depreciation is a constant figure in every year of an asset's useful life.

The calculation of depreciation expense is by establishing the depreciable amount, which is the asset cost minus salvage value.

Depreciable amount = Asset cost - Salvage value.

In this case

Depreciable amount = $268,000 - $31,800

=$236,200

The depreciation rate = 1/4 x 100 = 25%

Depreciation per year

=25/100 x $236,200

=$59,050

year Depreciable cost rate Amount

2022 $236,200 25% $59,050

2023 $236,200 25% $59,050

2024 $236,200 25% $59,050

2025 $236,200 25% $59,050

2. Depreciation under the double-declining method.

The double-declining method uses twice the rate of the straight-line depreciation method.

The depreciation rate for the straight-line method is 25%, double-declining will use 50%. The salvage value is $31,800. The asset is depreciated until the salvage value is achieved.

year Depreciable cost rate Amount

2022 $268,000 50% $134,000

2023 $134,000 50% $67,000

2024 $67,000 50% $33,500

2024 $33,500 - $1,700

Balance : salvage value of $31,800

b The straight-line method would have the highest income reported in 2022. It reports less depreciation expense.

c. both Methods will report the same amount of income over the 4 year period.

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sergiy2304 [10]

Answer:

$100

Explanation:

Total cost if he installs seven systems = $300

Total cost if he installs eight systems = $400

Therefore, the marginal cost of installing 8th system is the difference between the total cost of installing eight systems and the total cost of installing seven systems.

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Hence,

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8 0
3 years ago
Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemp
finlep [7]

Answer:

$ 915.71  

Explanation:

In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.

=nper(rate,pmt.-pv,fv)

rate is the semiannual interest rate of 6% (12%*6/12)

pmt is the semiannual interest=$1000*8.3%*6/12=$41.50  

pv is the current price at $813.04

fv is the face value of $1000

=nper(6%,41.50,-813.04,1000)= 16.00  

The years to maturity=16/2=8 years

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pmt =5.3%*$1000=$53

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5 0
3 years ago
Read 2 more answers
As a result of a thorough physical inventory, Sheridan Company determined that it had inventory worth $320800 at December 31, 20
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Answer:

Sheridan Company

The correct amount of inventory that Sheridan should report is:

= $367,100

Explanation:

a) Data and Calculations:

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Goods held on consignment by Herschel =                            46,300

December 27, FOB destination goods ($22,000)                   0

Correct amount of inventory that Sheridan should report $367,100

b) Goods on consignment are generally the property of the consignor (supplier) and not the consignee's (retailer's).  Therefore, they must appear in the balance sheet of the consignor.  Goods on FOB destination remain the property of the supplier until they reach the buyer's destination.  This is why it is not included above.

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Klio2033 [76]

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<h3>What is Standard Operating Procedures?</h3>

A standard operating procedure exists as a set of written instructions that represents the step-by-step process that must be endured to properly complete a routine activity. A standard operating procedure exists as a set of step-by-step instructions collected by an organization to assist workers to carry out routine operations. SOPs desire to accomplish efficiency, quality output, and uniformity of performance, while decreasing miscommunication and defeat to comply with industry regulations.

SOPs can also be used as a part of a personnel training schedule, hence they should support complicated work instructions. When historical data are being assessed for current usage, SOPs can be advantageous for reconstructing project movements.

Additionally, SOPs exist commonly used as checklists by inspectors when auditing systems. Finally, the benefits of a valid SOP stand minimized work effort, together with enhanced data comparability, credibility, and legal defensibility. SOPs exist necessary even when published procedures are being administered because cited published techniques may not contain appropriate data for conducting the procedure in-house.

To learn more about Standard Operating Procedures refer to:

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Answer:

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