Accountants must adhere to generally accepted accounting principles for depreciation. There are four methods for depreciation straight line, declining balance, sum-of-the-years’ digits and unit of production
Answer:
Total cost allocated to building = $66,240
Explanation:
Given:
Total amount pay = $170,000 + $14,000 = $184,000
Land appraised amount = $22,000
Building appraised amount = $79,200
Paddleboats appraised price = $118,800
Find:
Total cost allocated to building
Computation:
Total appraisal price = Land appraised amount + Building appraised amount + Paddleboats appraised price
Total appraisal price = $22,000 + $79,200 + 118,800
Total appraisal price = $220,000
Total cost allocated to building = [Total amount pay / Total appraisal price]Building appraised amount
Total cost allocated to building = [184,000/220,000]79,200
Total cost allocated to building = $66,240
Asset: 120,000
Year 1: estimated useful life of 10 years. residual value of 10,000
120,000 - 10,000 = 110,000 / 10 years = 11,000 annual depreciation.
Start of year 3.
estimated useful life of 4 years. residual value of 2,000
120,000 - 2,000 = 118,000 / 4 = 29,500 annual depreciation.
29,500 x 2 = 59,000
11,000 x 2 = 22,000
59,000 - 22,000 = 37,000
59,000 + 37,000 = 96,000 / 2 = 48,000 annual depreciation for year 3 and year 4.
Beginning Balance: 120,000
Less: Depreciation:
Year 1 11,000
Year 2 11,000
Year 3 48,000
Year 4 48,000 <u> (118,000)</u>
Residual Value 2,000
Answer:
When a bargain purchase occurs.
Explanation:
Whenever there is a business combination and there is an investment by a company into another company, called as holding and subsidiary, then the holding company pays for the assets acquired in business combination of subsidiary company.
When the amount paid is significantly less than the fair value of assets acquired, then there is a bargain purchase, and then the gain is recognized for the difference in amount of purchase price and net fair value of assets.
Thus correct option is,
When a bargain purchase occurs.
Answer:
the probability of the consumer’s shopping in location 1 is 50.6 %
the probability of the consumer’s shopping in location 2 is 29.9 %
the probability of the consumer’s shopping in location 3 is 19.4 %
Explanation:
Huff’s law is a mathematical model that takes consideration in the relation between the patronage and distance from location of the shopping area.
The equation for this mathematical model can be expressed as :
Where;
Probability of a consumer travelling from home (i) to shopping location (j)
= Travel time from consumer’s home (i) to shopping location (j)
= Dataset used to determine the effect of travel time in different kinds of shopping trips
n = Number of different shopping location.
NOW; from the given information.
for location 1 , the consumer shopping probability is :
Thus; the probability of the consumer’s shopping in location 1 is 50.6 %
for location 2 , the consumer shopping probability is :
Thus; the probability of the consumer’s shopping in location 2 is 29.9 %
for location 3 , the consumer shopping probability is :
Thus; the probability of the consumer’s shopping in location 3 is 19.4 %